Tax & Legal

On 30 June 2026, the German Central Bank (Deutsche Bundesbank) published a revised edition of its ‘Explanatory Notes on Foreign Trade Reporting’ (the Explanatory Notes). Among other matters, the Explanatory Notes provide further clarification on the reporting requirements for crypto-assets under the German Foreign Trade and Payments Regulation (Außenwirtschaftsverordnung – AWV).

The Federal Ministry of Finance (MoF) published its Sectoral Risk Assessment (SRA) to combat money laundering and terrorist financing. The SRA analyses the risks of money laundering and terrorist financing associated with the misuse of legal persons and legal arrangements.

In a recently published circular, the Federal Ministry of Finance (MoF) commented on the minimum running period of profit and loss pooling agreements (PLPA) and on partnerships acting as controlling entities. The current letter now supersedes the previous letter on these subjects of 10 November 2005 in its entirety.

The Finance Ministry of Lower Saxony commented on the value of consideration upon the sale of a property with solar or photovoltaic systems, namely if - when acquiring the real estate - the purchase price attributable to solar or photovoltaic systems should be included in the consideration for real estate transfer tax purposes.

In a recent announcement, the Federal Ministry of Finance (MoF) has amended the Application Decree for the Tax Code -which was last amended by the MoF letter dated March 17, 2026 - effective immediately. The focus is on adjustments in the area of non-profit status.

At the plenary session on 12 June 2026, the Bundesrat unanimously approved amendments to the Tax Consultancy Act that the Bundestag had only passed the previous evening.

Digitalization is also finding its way to the input VAT refund procedure. To meet the requirements for applications submitted after 31 December 2025, supporting documentation for refund applications from taxable persons (businesses) not established in an EU Member State must in future be provided in digital format.

On 18 June 2026 the Federal Ministry of Finance published its comprehensive circular on the definition of a permanent establishment.

The OECD Committee on Fiscal Affairs has been working to update and modernize the existing provisions of selected chapters in the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations which provides guidance on intra-group services. On 1 June 2026 a public consultation on proposed revisions to Chapter VII of the OECD Transfer Pricing Guidelines was launched.

On 26 May 2026, the Federal Ministry of Finance (MOF) circulated a draft bill for the Finance Act 2026 to industry associations and invited comments by 12 June 2026. The key legislative changes relevant to businesses are summarised below.

The German Federal Financial Supervisory Authority has fundamentally revised the “Minimum Requirements for Risk Management” (MaRisk) and, on 1 April 2026, presented the draft of the 9th amendment to these administrative guidelines for public comment.

The Federal Central Tax Office (FCTO) has activated the form “Registration of Crypto-Asset Service Providers (CARF/DAC 8)” on its online portal. Crypto-asset operators who are not already subject to authorization under Regulation (EU) 2023/1114 (MiCA) can now register with the FCTO.

A draft cabinet bill, which has not yet been officially published, has now been submitted by the CDU/CSU and SPD proposing an amendment to introduce a temporary tax exemption in Section 3(11d) of the draft Income Tax Act for so-called “relief bonuses” of up to EUR 1,000 paid by employers

On 9 April 2026, the German Federal Ministry of Finance (Bundesministerium der Finanzen) published a circular amending the VAT Application Decree, which provides the administrative guidance on the application of VAT law, specifically with regard to the entrepreneurship status of tenancies in common (Bruchteilsgemeinschaften) and other entities without legal capacity.

Donations and membership fees to recognized political parties will get more tax breaks in the future. Anyone who donates 3,300 euros can reduce their taxes by 1,650 euros a year—regardless of their personal tax rate, explains an executive director of the Federal Payroll Tax Support Association (Lohnsteuerhilfeverein) in Berlin.

On 18 March 2026, the highest state tax authorities issued a general order rejecting all admissible objections against the statutory actuarial interest rate of 6 percent used in the calculation of the partial (going-concern) value of pension provisions and which are pending as of that date.

On 13 February 2026, the Federal Ministry of Finance (MoF) sent a comprehensive draft circular on the principles applied by the tax administration regarding the concept of a permanent establishment and the establishment of a permanent establishment in domestic and international tax law to interested associations for comment by 13 March 2026. The circular aims to systematically present the factual requirements for a permanent establishment under Section 12 of the General Tax Code (GTC) that are relevant for the application of numerous income tax regulations and to clarify the relationship to the concept of a permanent establishment under treaty law in accordance with Article 5 of the OECD Model Tax Convention. The circular takes comprehensive account of the current case law of the Supreme T ...

The Federal Cabinet today adopted the Common Action Plan against Organized Crime. It was jointly developed by the Federal Ministry of Finance, the Federal Ministry of the Interior, and the Federal Ministry of Justice and Consumer Protection.

Following recent consultations at EU level, new ETACA pilot procedures (European Trust and Cooperation Approach) are now expected to begin in April 2026, the Federal Central Tax Office announced. Companies interested in participating can therefore register until the end of March 2026.

As a result of a decision published by the Supreme Tax Court in April 2025, the Federal Ministry of Finance (MoF) has commented on the distinction between the remuneration of a service on the one hand and economic activity on the other in case of deficit-ridden institutions.