It started as a regional “task force” and now has developed into a nationwide search for influencers suspected of tax evasion. Special units of the tax authorities are now using state-of-the-art analysis tools throughout Germany combining artificial intelligence with traditional covert investigation methods and focusing specifically on social media income.
The current edition deals with the "Wachstumschancengesetz" (Growth Opportunity Act). This Act includes (but is not restricted to) important amendments with respect to future mandatory B2B electronic invoicing for businesses established in Germany.
On 8 August 2023, a presidential decree was published, under which the selected provisions of international double tax treaties (DTTs) must be suspended until "the respective foreign states eliminate the violations of legitimate economic and other interests of the Russian Federation."
The German and Swiss tax authorities have concluded a new consultation agreement regarding the group of persons to whom Article 15 paragraph 4 applies to ensure the uniform application and interpretation of Article 15 paragraph 4 of the double tax agreement between Germany and Switzerland (Federal Ministry of Finance, letter dated 25 April 2023).
With effect from 1 August 2021, the transparency register was changed from a fall-back register to a comprehensive register. With the conversion to the comprehensive register, almost all domestic companies are now obliged to report their (fictitious) beneficial owners to the transparency register. The transitional periods for the notification of the (fictitious) beneficial owners granted in the course of the conversion have all expired by the end of 2022.
France has chosen to exercise the option of Article 11 of the VAT Directive as of 1 January 2023 and to provide for the establishment of a VAT group if certain requirements are met. With this new optional regulation in force France joins most other EU countries providing for one VAT entity for the whole group and a single VAT registration in this respect.
The Italian Supreme Court issued seven important judgments in which it ruled that Italian withholding taxes levied on dividends distributed to a German investment fund and six US investment funds are in violation of the EU principles on the free movement of capital (Article 63 (TFEU).
On 15 October 2021, the leaders of Germany's Social Democrats (SPD), climate-friendly Greens and pro-business Free Democrats (FDP) presented their initial exploratory paper which also includes several tax issues. Tax increases are to be largely avoided, no tax cuts are planned. However, the issues addressed so far may still be subject to changes during future coalition negotiations and it should be expected that further topics might yet be brought up. Thus it is still a long way down the road until a joint coalition agreement can be signed since there are still several tricky questions remaining which will have to be brought in line by the acting team players and their political parties.
The PwC VAT Newsflash deals with the overhaul of the provisions of the German VAT Application Guidelines about the VAT treatment of travel services, following an amendment of the respective provision of the German VAT Act and considering the latest case law.
An amendment to a statutory law which was passed by the Bundestag and Bundesrat in December 2020, entered into force on 1 January 2021, requires a review of those profit and loss pooling agreements concluded and last amended before 27 February 2013. This pertains to profit and loss pooling agreements (PLPA) for tax groups (“Organschaft”) with a GmbH as controlled subsidiary and which do not (yet) contain an explicit and unconditional reference to Section 302 of the German Stock Corporation Act (GSCA) which includes future changes of the provision (so-called “dynamic reference”).
PwC updated its publication Real Estate Going Global - Worldwide country summaries, that provides you with a summary of tax and legal aspects of real estate investments from 50 territories around the globe.
Congress on December 20, 2017 gave final approval to the House and Senate conference committee agreement on tax reform legislation that would lower business and individual tax rates, modernize US international tax rules, and provide the most significant overhaul of the US tax code in more than 30 years. President Trump signed the tax bill on 22 December 2017.
The German Constitutional Court held that the rules for curtailment of loss relief on change of shareholders to be in breach of the formal provisions of the constitution under the principle of equal treatment insofar as changes of more than 25% and up to 50% of the shares in a company within a period of five years are concerned.
The time has come to say goodbye: Today UK Prime Minister Theresa May formally invoked Article 50 of the Lisbon Treaty thus initiating the formal negotiations for her country’s departure from the European Union. A PwC special report looks at the potential outcome with respect to tax, legal and people.
A successful conclusion of a long negotiating process: The TFA, short for Trade Facilitation Agreement, entered into force on 22 February 2017 and brings along a number of improvements mainly in trading with developing countries. It is hailed as the greatest success since the founding of the WTO, the World Trade Organization, and shows the commitment of the members for a multilateral trading System.
On 22 February 2017 the federal government approved a draft bill to implement both the fourth EU money laundering directive and the EU regulation on the transfer of funds as well as to reorganise the Central Financial Transactions Investigation Agency. The intention is to up-date and strengthen measures developed to prevent money laundering and the financing of terrorism.
On 25 January 2017 the federal government approved a draft of the Act to Combat Harmful Tax Practices in connection with the Licensing of Rights. The intention is to prevent multinational businesses from transferring their royalty income to countries, which offer such income preferential treatment. Such preferential tax regimes (so-called Licence Boxes, Patent Boxes or IP-Boxes) are considered not to meet the demands of the OECD and G20 BEPS Project. A new provision is to be introduced to the Income Tax Act (ITA) for this purpose; the new provision should be applied to expenses arising after 31 December 2017.
2017 seems to be the year for tax reform: There are currently major changes to the US tax system discussed that may also have a significant impact on German companies. German tax consequences of potential restructurings in response to the upcoming US tax reform must therefore be considered already at an early stage and the current developments be constantly monitored.
Under certain conditions, changes in shareholders and the admission of new investors will in future be possible without giving rise to a forfeiture of losses carried-forward. On 23 December 2016 the Act for the Further Development of Tax Loss Utilisation for Corporations was published after having been adopted by the German Parliament (Bundestag and Bundesrat) on 20 December 2016.
