Categories: Official Pronouncements (264 found)

  2. 13.11.2024

    MoF: Wage tax treatment of employer‘s expenses for employees ...

    In a recent circular, the Federal Ministry of Finance (MoF) comments on the question of how expenses for safety measures borne or reimbursed by the employer for employees who are exposed to a specific risk due to their professional position are to be treated for wage tax purposes. The detailed circular was issued with reference to the outcome of discussions with the highest tax authorities of the German Federal States.

    Categories: Official Pronouncements
    Keywords: wage tax
  3. 08.11.2024

    MoF: Applicable wage tax table for temporary employment in G ...

    On 8 October 2024, the Federal Ministry of Finance (MoF) published a new letter on the determination of tax-free and taxable wages in accordance with double taxation agreements and the foreign activity decree in the wage tax deduction procedure. This current letter replaces the previous MoF letter dated 14 March 2017 and is to be applied for all wage payment periods after 31 December 2024.

    Categories: Official Pronouncements
    Keywords: wage tax
  6. 16.10.2024

    MoF: Credit of foreign corporate tax under previous imputati ...

    In a most recent circular the Federal Ministry of Finance commented on the method of the foreign corporation tax credit under the formerly applicable German imputation system. The focus of the circular are two judgments of the European Court of Justice as regards the calculation and verification of the creditable corporation tax underlying a dividend from another EU country.

    Categories: Official Pronouncements
    Keywords: foreign tax credit, corporate income tax ...
  7. 11.10.2024

    MoF publishes draft of a revised circular on the interest li ...

    On 10 October 2024 the Federal Ministry of Finance (MoF) published a first draft of a revised BMF circular on the interest limitation provisons in Section 4a Income Tax Act (ITA) and Section 8a Corporate Tax Act (CTA). Due to various amendments which took place in the course of the Act to Promote the Secondary Credit Market (Kreditzweitmarktförderungsgesetz) the tax administration sees the need for revisions.

    Categories: Official Pronouncements
    Keywords: interest limitation
  8. 09.09.2024

    Ministry of Finance: Tax treatment of incongruent distributi ...

    Following a judgment of the Supreme Tax Court, the tax authorities confirm that incongruent profit distributions - i.e. profit distributions that deviate from the share in the share capital or nominal capital - are in principle to be recognized for tax purposes. This requires that the corresponding dividend resolution is effective under civil law. In its current circular the Federal Ministry of Finance (MoF) explains in more detail the principles and special features of various constellations.

    Categories: Official Pronouncements
    Keywords: incongruent advance distribution
  12. 07.06.2024

    Federal Cabinet approves government draft of the Finance Act ...

    At its meeting on 5 June 2024, the Federal Cabinet adopted a government draft for the Finance Act 2024 (FA 2024). Despite numerous revisions, the material amendments from the original draft from 8 May 2024 have been limited. The main changes are shown in italics and red in the following summary of the government draft in italics and red.

    Categories: Official Pronouncements, Tax & Legal New ...
    Keywords: Real Estate, trade tax, General Tax Code ...
  13. 05.06.2024

    Update: Federal Ministry of Finance publishes draft bill for ...

    On 17 May 2024, the Federal Ministry of Finance (MoF) sent a draft bill for the Finance Act 2024 (FA 2024) to the professional associations for comments by 24 May 2024. The draft has now also been published on the MoF website. The law is intended to implement changes to various areas of German tax law which need adjustment. The focus is on adjustments required by EU law and case law of the European Court of Justice (ECJ), the German Federal Constitutional Court, and the German Supreme Tax Court. Furthermore, follow-up amendments to previous legislative changes will be made. This blog summarises the key content. - Meanwhile the Federal Cabinet has approved the draft bill (see Update further below at the end of this post).

    Categories: Official Pronouncements, Legislation
    Keywords: real estate transfer tax, trade tax, Reo ...
  16. 16.02.2024

    Federal States Supreme Tax Authorities Identical Decrees: Ap ...

    In identical decrees issued by the Supreme Tax Authorities of the Federal States, the tax authorities comment upon the judgment of the Supreme Tax Court of 26 July 2022 (II R 25/20) and upon the underlying view that the option relief under Section 13a (10) Inheritance Tax and Gift Tax Act (or Section 13a (8) IHTA old version) can be exercised separately for each economic unit transferred. This applies to all open cases.

    Categories: Official Pronouncements
    Keywords: family business, inheritance and gift ta ...
  17. 15.12.2023

    Bundesrat approves a partial implementation of the Growth Op ...

    On 15 December 2023, the Bundesrat approved the partial implementation of the contents of the Growth Opportunities Act in the Act to Promote the Secondary Credit Market. This includes changes to the interest limitation rule and adjustments resulting from the introduction of the Act for the Modernisation of Partnerships.

    Categories: Official Pronouncements, Legislation
    Keywords: real estate transfer tax, thin capitalis ...
  18. 21.11.2023

    Bundestag approves Growth Opportunities Act

    On 17 November 2023, the Bundestag approved the Act to Strengthen Growth Opportunities, Investment, and Innovation as well as Tax Simplification and Fairness (Growth Opportunities Act) in the form recommended by its Finance Committee. The Act will be presented to the Bundesrat on 24 November 2023. It cannot currently be ruled out that the Bundesrat will convene the Mediation Committee to discuss individual provisions of the Act (the climate protection investment premium, in particular, will probably be discussed).

    Categories: Official Pronouncements, Tax & Legal New ...
    Keywords: Corporation tax, Income Tax Act, Growth ...
  19. 17.11.2023

    Allocation of trade tax in case of large battery storage sys ...

    On 13 November 2023, the German Federal Ministry of Finance (MoF) published identical decrees issued by the highest tax authorities of the German Federal States on the allocation of trade tax between municipalities in case of large-scale battery storage systems for storing wind and solar energy (according to the provisions set forth in Section 29 Trade Tax Act).

    Categories: Official Pronouncements
    Keywords: trade tax, renewable energy
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Björn Viebrock

Björn Viebrock

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Düsseldorf

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