28.04.2023 Update: ECJ - Final losses of UK branch not deductible for ... In its decision of 22 September 2022, the European Court of Justice upheld the German rule that the final losses of a permanent establishment (PE) located in the United Kingdom are not deductible for the German head office (parent company). This practice is not contrary to the principle of freedom of establishment. There is no obligation under EU law to take such losses into account because Germany as the state of residence has waived its power to tax the profits (and losses) of its UK PE under the UK/German double tax treaty. Categories: European Court of JusticeKeywords: Final PE losses, foreign branch losses
12.02.2019 Deduction of final branch losses – a change of track? The Lower Tax Court of Hesse, with reference to the ECJ case Bevola und Jens W. Trock, decided that final losses of a foreign (UK) permanent establishment are deductible in Germany. Categories: Supreme Tax Court casesKeywords: Final PE losses, foreign branch losses
26.06.2018 Tax & Legal News - Issue 4, June 2018 Some of the topics in this issue: Administration amends circular on treaty-shopping rules, Pensions paid abroad subject to limited tax liability, ECJ - Denmark to set-off final losses of foreign EU-branch. Categories: Tax & Legal NewsKeywords: Final PE losses, anti-treaty shopping ru ...
20.06.2018 ECJ – Refusal to set-off EU-branch losses in Denmark not com ... A Danish company may set off the final losses of its foreign EU-permanent establishment against its own taxable income, provided it can prove that the losses incurred are final and the company has exhausted the possibilities to deduct those losses in that Member State. Categories: From EuropeKeywords: Final PE losses, international joint tax ...
06.06.2017 No deduction of final branch losses following EU law. Payments made to a purchaser to compensate for a poor economic position following the transfer of an interest in a partnership may not be deducted from the domestic tax base to the extent they are attributable to a foreign branch (i.e. a permanent establishment for tax treaty purposes) of the partnership. In its decision the Supreme Tax Court cited a decision of the European Court of Justice (ECJ) from 2015. Categories: Supreme Tax Court casesKeywords: International Tax, EU Law, Final PE loss ...
