Tax & Legal

Current developments and relevant innovations in the subject area of taxes & law in English.

Categories: All (1738 found)

  1. 25.08.2025

    Tax may be retroactively abolished in case of error on tax c ...

    In a recent judgment, the Supreme Tax Court decided that the transfer of GmbH shares as part of the principle of equalization of accrued gains between spouses (Zugewinnausgeich) generally constitutes a taxable sale. However, retroactive elimination of the respective capital gain is possible if the transfer is reversed due to an error on the subsequent tax consequences.

    Categories: Supreme Tax Court cases
    Keywords: share transfer, retroactive, correction ...
  2. 25.08.2025

    Interim decision on the extended limitation period for asses ...

    An interim decision pursuant to Section 99 (2) of the Code of Procedure of Fiscal Courts (Finanzgerichtsordnung - FGO) with regard to the extended assessment period (statute of limitations) pursuant to Section 169(2) sentence 2 alternative 1 of the German Fiscal Code for tax evasion is not permissible if there are no findings regarding the reason for and amount of the respective tax claim and thus on the objective and subjective facts of a criminal offence.

    Categories: Supreme Tax Court cases
    Keywords: limitation period, correction of assessm ...
  3. 22.08.2025

    Taxation of income earned by a public service orchestra musi ...

    An orchestra musician employed by a public corporation in the Grand Duchy of Luxembourg is an artist within the meaning of Article 16 (1) of the double tax treaty between Germany and Luxembourg. The Supreme Tax Court has recently decided that his salary is taxable in Germany as income from employment with a credit of the tax paid in Luxembourg.

    Categories: Supreme Tax Court cases
    Keywords: double tax treaty, public sector, employ ...
  5. 19.08.2025

    Partial write- down of partner loan receivable upon terminat ...

    The fact that a commercial limited partnership (KG) receives income ranking as business income because of the so called „tainting effect“ does not preclude the partial write-off of a worthless loan owed to its partner if the principles of corresponding accounting between partnership and the partners no longer apply because of the discontinuation (cessation) of the business of the KG. Unlike the tax court of first instance, the Supreme Tax Court allowed the loss from the partial write-down to be recognized already at the time of the cessation of the business activities.

    Categories: Supreme Tax Court cases
    Keywords: write-down, tainted income
  7. 14.08.2025

    Federal Ministry of Finance publishes draft bill for a Minim ...

    On August 6, 2025, the Federal Ministry of Finance (MoF) sent the draft bill for a law to adjust the Minimum Tax Act (“MTA”) and implement further measures (“MTAA – Draft”) to the associations for comment by August 11, 2025. The draft bill includes measures for the implementation of the OECD Administrative Guidance on Article 9.1 of the Global Anti-Base Erosion Model Rules from January 2025 as well as “accompanying measures" that are intended to contribute to the simplification of international tax law ("decluttering") outside the scope of the MTA.

    Categories: Official Pronouncements, Tax & Legal New ...
    Keywords: CFC provisions, minimum taxation, Foreig ...
  8. 14.08.2025

    Consequences of an unjustified VAT disclosure according to S ...

    In a recent judgment the Supreme Tax Court decided that the requirements for an invoice within the meaning of Section 14c (2) Value Added Tax Act (VAT Act) are fulfilled if the document contains the issuer of the invoice, the (presumed) recipient of the service, a description of the service, the remuneration, and information on the VAT shown.

    Categories: Supreme Tax Court cases
    Keywords: incomplete invoice, incorrect VAT
  12. 06.08.2025

    More effective detection of tax evasion and tax fraud: Germa ...

    According to a press release issued today the Cabinet has decided to extend the retention period for accounting documents at banks, insurance companies and securities institutions to ten years. The amendment to the law aims to combat tax evasion and strengthen effective tax enforcement. This will enable large-scale tax evasion cases, such as those involving cum/cum and cum/ex transactions, to be vigorously prosecuted.

    Categories: Official Pronouncements
    Keywords: retention requirement, accounting data, ...
  13. 04.08.2025

    The Supreme Tax Court considers the double assessment of rea ...

    In an interim decision, dated 9 July 2025 (II B 13/25 (AdV) and published on 31 July 2025, the Supreme Tax Court considered it doubtful, following a summary examination, that in cases where the contractual acquisition transaction (signing) and the transfer of the shares (closing) take place at different times, real estate transfer tax can be assessed twice – namely once upon signing under Section 1(3) No. 1 of the German Real Estate Transfer Tax Act (“RETTA)” (signing) and once upon closing under Section 1(2b) RETTA – if the tax office is aware at the time of assessment for the signing that the closing has already occurred.

    Categories: Supreme Tax Court cases, Tax & Legal New ...
    Keywords: real estate transfer tax, unification of ...
  14. 03.08.2025

    ECJ referral regarding the review of protection of good fait ...

    The Supreme Tax Court referred to the European Court of Justice the question whether, in accordance with the principle of effectiveness, EU law precludes a national practice whereby the taxpayer's good faith in fulfilling the conditions for the margin scheme is not taken into account during the tax assessment procedure but rather considered later in fully separate proceedings.

    Categories: Supreme Tax Court cases
    Keywords: concession, good faith, waiver
  15. 01.08.2025

    ECJ: No further taxation of dividend in case of Parent-Subsi ...

    In a request for a preliminary ruling from Italy, the European Court of Justice (ECJ) held that a national legislation providing for tax being levied on more than 5% of the amount of the dividends that financial intermediaries receive, as parent companies, from their subsidiaries resident in other Member States is contrary to EU law. This also applies in the case of a tax which is not a tax on corporate income but which includes in its basis of assessment those dividends or a part thereof.

    Categories: European Court of Justice
    Keywords: dividend exemption, Parent/Subsidiary Di ...
  17. 31.07.2025

    No inheritance tax if founders of trust have only limited po ...

    If the founder of an Anglo-American trust, validly established under Guernsey law, has not reserved any powers of control that would allow him to continue to freely dispose of the assets held in the trust, the assets concerned are legally considered to be independent (intransparent) and are not part of the founder's inheritance (legacy) upon his death. Inheritance tax is therefore not payable in such cases, the Tax Court of the state of Schleswig-Holstein said in a final decision.

    Categories: Tax Court
    Keywords: trust, foreign inheritance
  20. 24.07.2025

    Taxation of carried interest under the DTA between the USA a ...

    The right to tax carried interest (i.e. the additional share of profits disproportionate to the capital invested) is vested in the country of residence either under Art. 21(1) Double Tax Agreement-USA (“DTA-USA”) (Other Income) or under Art. 13(5) DTA-USA (Capital Gains) if the corresponding income constitutes income from asset management and not income from business activities. In a recent decision, the Schleswig-Holstein Tax Court ruled on the treaty qualification of the carried interest received by a German resident shareholder (the intervenor) of a limited liability company established under the law of the US state of Delaware with its registered office and place of management in the US (the claimant).

    Categories: Tax & Legal News, Tax Court
    Keywords: double tax treaty, business income, part ...
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Björn Viebrock

Björn Viebrock

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