Tax & Legal

Categories: All (1825 found)

1. 12.01.2026

   Rental of parking space in connection with double-household ...

   In a recently published decision, the Supreme Tax Court held that an employee, in addition to the deduction of expenses for the rented apartment as double-household relief, can also claim the costs for a parking space as income-related expenses.

   Categories: Supreme Tax Court cases

   Keywords: deduction, double-household
2. 12.01.2026

   Increase in value of shares in a corporation subject to gift ...

   According to Section 7 (8) sentence 1 of the Inheritance and Gift Tax Act, the increase in value of shares in a corporation is deemed to be a gift. In a most recently published decision, the Supreme Tax Court held that this provision does not contain any subjective elements, neither in the form of awareness of the gratuitous nature nor of an intention of personal enrichment.

   Categories: Supreme Tax Court cases

   Keywords: gift tax, value impairment, taxable valu ...
3. 12.01.2026

   MoF: Tax group involving a corporation with an atypical sile ...

   In two judgments published in April 2025, the Supreme Tax Court decided that a corporation in which there is an atypical silent partnership can be a subsidiary within a corporation tax group. With its rulings, the court deviated from an earlier opinion of the tax authorities. The Federal Ministry of Finance has now commented on the consequences of the two judgments.

   Categories: Official Pronouncements

   Keywords: non-typical silent partnership
4. 09.01.2026

   Hidden profit distribution due to worthless right of first r ...

   A shareholder with a 50.1% stake in a limited liability company (GmbH) who reduces his debt by assigning a non-valuable position designated as a right of first refusal in connection with a property belonging to him to another group company which he indirectly controls might face the consequences of a hidden profit distribution. In a recent judgment the Supreme Tax Court held that this is the case if the GmbH “pays” for this by “taking over” the negative clearing account with the other group company.

   Categories: Supreme Tax Court cases

   Keywords: worthless debt, hidden distributions
5. 31.12.2025

   MoF: Interpretation of agreements for avoidance of double ta ...

   In a most current circular, the Federal Ministry of Finance (MoF) revised its position on the application of the OECD Model Tax Convention when interpreting double taxation agreements (DTAs). This was prompted by the publication of a decision of the Supreme Tax Court of 5 December 2023.

   Categories: Official Pronouncements

   Keywords: OECD model
6. 31.12.2025

   Restoring the reduced tax rate on restaurant and catering se ...

   In the course of the Tax Amendment Act 2025 a reduction of VAT for restaurant and catering services, with the exception of the sale of beverages, to seven per cent was introduced from 1 January 2026 (Section 12 (2) No. 15 of the Value Added Tax Act). The Federal Ministry of Finance (MoF) has recently issued a brief decree as to specific aspects of the new rule.

   Categories: Official Pronouncements

   Keywords: catering, reduced rate VAT
7. 23.12.2025

   2025 Update to the OECD Model Tax Convention

   On 19 November 2025, the OECD published an update to the OECD Model Tax Convention and the corresponding commentary on Article 5 regarding permanent establishments. The new guidelines specify the circumstances under which a home office is considered as permanent establishment.

   Categories: From Europe

   Keywords: OECD model
8. 19.12.2025

   Compensation for violation of data protection by tax authori ...

   In a recently published decision, the Supreme Tax Court has for the first time commented on the requirements for claims of damages before the tax court against a tax authority due to violation of data protection regulations. Such action for damages pursuant to Art. 82 of the General Data Protection Regulation (GDPR) is generally inadmissible (for want of being adversely affected or burdened) if there has been no prior out-of-court request of the claim.

   Categories: Supreme Tax Court cases

   Keywords: damages, Data Protection
9. 19.12.2025

   German taxation of payments from US 401(k) pension plan

   Payments from a pension plan under Section 401(k) of the US Internal Revenue Code are subject to income tax according to Section 22 No. 5 Sentence 2 letter b of the German Income Tax Act if made before 1 January 2025. The Supreme Tax Court’s conclusion on the matter is largely the result of the structural comparability recognized and acknowledged by Germany pursuant to Section 1 (1), § 1b (2) and (3) of the Law on Promotion of Employer Pension Schemes (Betriebsrentengesetz) specifying ways and means in which employers can organize occupational pension schemes.

   Categories: Supreme Tax Court cases

   Keywords: US Pensionsplan, pension plan
10. 16.12.2025

    ECJ: Person liable for VAT in case of joint action by severa ...

    In a most recently published judgment, the European Court of Justice (ECJ) held that the VAT Directive precludes a national legislation which provides that one of the partners in a civil law partnership devoid of legal personality separate from that of its partners and providing taxable services is to be deemed to be the person liable to pay value added tax in respect of taxable services provided by the other partners in that partnership.

    Categories: European Court of Justice

    Keywords: liability for VAT, taxable person
11. 16.12.2025

    ECJ: Joint and several VAT liability of a third party after ...

    The request for a preliminary ruling from Bulgaria concerns the joint and several liability of a third party for the VAT debts of a person liable for payment of that VAT (a company) where that person no longer exists, and where the liability of that third party was not prescribed until after that company’s liquidation (here, removal of the principal debtor from the commercial register).

    Categories: European Court of Justice

    Keywords: liability for VAT
12. 14.12.2025

    Purchase of additional data concerning investments in offsho ...

    North Rhine-Westphalia (NRW) is taking another decisive step in the fight against tax evasion. The State Office for Combating Financial Crime has acquired a terabyte of data relating to customers in offshore tax havens. The impact on taxpayers could be tremendous.

    Categories: Official Pronouncements

    Keywords: Tax evasion, tax haven
13. 14.12.2025

    No gift tax exemption for contributions to state foundation

    Donations to a foundation with legal capacity established by a federal state are not exempt from gift tax if, according to the purposes specified in the statutes of the foundation, the donations do not exclusively serve the purposes of the federal state and are not exclusively used for tax-privileged purposes. This is the conclusion reached by the Supreme Tax Court in a recently published decision.

    Categories: Supreme Tax Court cases

    Keywords: donations, gift tax, foundation
14. 14.12.2025

    No confiscation and utilization of damaged oil tanker and it ...

    In two separate but substantively related appeal proceedings for preliminary legal protection, the Supreme Tax Court held that customs authorities are not permitted to confiscate and to utilize the oil tanker “Eventin” for the time being in light of the European Union (EU) sanctions against Russia. The court sees “reasonable doubts“ as to the legitimacy of the proposed measures. It is not clear whether, despite EU sanctions, the ship and its cargo are allowed to enter and leave EU territory due to an exception applicable for emergencies.

    Categories: Supreme Tax Court cases

    Keywords: international shipping, fuel oil, Russia
15. 13.12.2025

    Supreme Tax Court considers the land tax reform (“federal mo ...

    In three cases and following oral proceedings on 12 November 2025, the Supreme Tax Court held that using the capitalized earnings value method for the valuation of residential property to determine the land tax from January 1, 2025, to be constitutional.

    Categories: Supreme Tax Court cases

    Keywords: land tax, Taxation of real estate
16. 12.12.2025

    No hidden distribution of severance pay for pension commitme ...

    The Supreme Tax Court once again decided on pension promises to a managing director who is also the majority shareholder of the employer company and specified in more detail the rules for distinguishing allowable business expenses from disallowable “hidden distributions”. In the case at hand the plaintiff received compensation for early termination of pension claims as a result of significant financial difficulties of the company.

    Categories: Supreme Tax Court cases

    Keywords: pension, hidden distributions, severance ...
17. 10.12.2025

    ECJ: Documentation requirements for tax exemption and tax re ...

    In a most recent decision on the procedural approach to obtain a WHT exemption, the European Court of Justice (ECJ) has reaffirmed that procedural aspects and formalities can amount to disguised restrictions, and that the practical realization of fundamental freedoms must be ensured. This requires considering not only the relevant provisions of tax law but also any procedural requirements and formalities that may hinder the application of tax benefits or relief.

    Categories: European Court of Justice

    Keywords: refund procedure, dividend withholding t ...
18. 10.12.2025

    MoF: Administrative services for dependent fiduciary foundat ...

    Following an earlier decision of the Supreme Tax Court from 2024 on the VAT treatment of the administration (management) of fiduciary foundations, the Federal Ministry of Finance (MoF) has commented on the matter and amended Section 1.1 of the VAT Application Ordinance accordingly.

    Categories: Official Pronouncements

    Keywords: foundation, fiduciary
19. 09.12.2025

    EU Commission: Proposal of measures to ensure the timely imp ...

    On 21 October 2025, the Commission proposed targeted solutions to support companies, global stakeholders, third countries and Member States to ensure smooth implementation of the EU Deforestation Regulation (EUDR).

    Categories: From Europe

    Keywords: IT-Systeme, Systemic Risk
20. 08.12.2025

    Extended trade tax deduction in case of property rental toge ...

    Operating equipment is not part of the real estate for valuation purposes, its joint rental together with the real estate is harmful to the extended trade tax deduction pursuant to Section 9 No. 1 Sentence 2 Trade Tax Act. This also applies if the operating facility is permanently attached to the land or building. The only exception to this rule is if the joint-letting of the operating equipment permanently attached to the land or building is considered a secondary activity that does not affect the tax benefit, the Supreme Tax Court said in a most recent judgment.

    Categories: Supreme Tax Court cases

    Keywords: extended trade tax deduction
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