28.04.2025 North Rhine-Westphalia: First federal state to use artificia ... The Northrhine-Westphalia tax authorities are taking a further step towards digital administration. From May 2025, an AI module will be used for the first time in four pilot tax offices in the state to support the tax assessment procedure. The objective: tax returns are to be processed more efficiently, faster and more accurately - to the benefit of both citizens and employees in the tax administrations. Categories: Official PronouncementsKeywords: Artificial Intelligence (AI)
11.04.2025 Tax issues in the coalition agreement between CDU, CSU and S ... An overview of the tax issues in the coalition agreement between the CDU, CSU and SPD of 9 April 2025. Categories: Official Pronouncements, Tax & Legal New ...Keywords: business income, Income Tax Act
06.04.2025 MoF: Documentation of business relationships via transaction ... The Ministry of Finance (MoF) has published some information on the so-called transaction matrix pursuant to Section 90 (3) sentence 2 no. 1 Fiscal Code which requires taxpayers to keep records of the nature and the content of their business relationships within the meaning of Section 1 (4) of the Foreign Tax Act. Categories: Official PronouncementsKeywords: record retention, documentation
10.03.2025 MoF: Questions regarding the income tax treatment of specifi ... On 7 March 2025, the Federal Ministry of Finance (MoF) published a revised circular on specific questions regarding the income tax treatment of certain crypto assets in Germany. Categories: Official PronouncementsKeywords: crypto asset
21.02.2025 Information on the taxpayer's main rights and obligations to ... The Federal Ministry of Finance (MoF) has updated its information on the taxpayer's main rights and obligations to cooperate during the external tax audit. Categories: Official PronouncementsKeywords: cooperation, tax audit
03.01.2025 MoF: Revised allocation formula for input VAT deduction of f ... Towards the end of 2024 the Federal Ministry of Finance (MoF) commented in some detail on the input VAT deduction for credit institutions. The ministerial pronouncement focuses on the attribution of input transactions to output transactions and the relevant input VAT allocation in accordance with Section 15 (4) VAT Act. Another focus of the MoF circular is on cross-border structures and specifically the services between local branches and their foreign head office and vice versa. Categories: Official PronouncementsKeywords: banking service, input VAT deduction
26.11.2024 Introduction of compulsory e-invoicing in Germany – final Mo ... The Growth Opportunities Act of 27 March 2024 introduced a binding standard for electronic invoices (e-invoice) from 2025, which applies to all supplies of goods and services performed between taxable persons (B2B) established in Germany. Staggered transition periods will apply for issuing e-invoices, but accepting such invoices in the prescribed format will be mandatory from 1 January 2025. Now the Federal Ministry of Finance (MoF) has published a final decree on this matter. Categories: Official PronouncementsKeywords: electronic invoice
25.11.2024 MoF draft: Questions regarding the income tax treatment of f ... On 15 November 2024 the Federal Ministry of Finance (MoF) has published the draft of an explanatory circular on various issues relating to the tax treatment of fund establishment costs and has sent a corresponding draft circular to certain associations to comment by 12 December 2024. Categories: Official PronouncementsKeywords: investment funds, acquisition
22.11.2024 Bundesrat approves the Finance Act 2024 and a retroactive in ... The Bundesrat approved both the Finance Act 2024 and the Act for the Tax Exemption on the Subsistence Minimum 2024 at its session on 22 November 2024. Categories: Official Pronouncements, LegislationKeywords: Income Tax Act, Finance Act
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 PronouncementsKeywords: wage tax
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 PronouncementsKeywords: wage tax
25.10.2024 Bundestag adopts Finance Act 2024 Following the recommendation of its Finance Committee, the Bundestag adopted the Finance Act 2024 (FA 2024) in an amended version on 18 October 2024. Categories: Official Pronouncements, LegislationKeywords: RETT, General Tax Code, Income Tax Act, ...
23.10.2024 MoF: Premature termination of a service contract in the tele ... In a recent circular, the Federal Ministry of Finance /MoF) commented on the VAT treatment of compensation payments in the event of a premature termination of telecommunication contracts with a minimum commitment term. Categories: Official PronouncementsKeywords: compensation payment, telecommunications
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 PronouncementsKeywords: foreign tax credit, corporate income tax ...
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 PronouncementsKeywords: interest limitation
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 PronouncementsKeywords: incongruent advance distribution
03.09.2024 Simultaneous payment of managing director's salary and regul ... The Federal Ministry of Finance has published a circular with comments on the consequences of a Supreme Tax Court decision from 2023 on hidden distributions and has in one part adjusted its earlier circular from 2017 regarding the tax accounting of pension commitments. Categories: Official PronouncementsKeywords: pensions, hidden distributions
18.06.2024 Federal Ministry of Finance: Draft circular on mandatory ele ... On 14 June 2024, the Federal Ministry of Finance (MoF) published a draft circular on the introduction of mandatory electronic invoicing for transactions between domestic businesses from 1 January 2025. Categories: Official PronouncementsKeywords: electronic invoice
14.06.2024 Federal Ministry of Finance circular on VAT taxation of publ ... In a detailed circular dated 12 June 2024, the Federal Ministry of Finance has commented on the input tax deduction by legal entities under public law operating as businesses. Categories: Official Pronouncements, Tax & Legal New ...Keywords: VAT Act
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 ...
