Tax & Legal

Categories: All (7 found)

1. 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 Pronouncements

   Keywords: compensation payment, telecommunications
2. 10.04.2024

   Contribution for general partner not part of trading profit ...

   In a most recent decision, the Supreme Tax Court held that profits from special compensation for the general partner of a limited partnership pursuant to Section 5a (4a) sentence 3 Income Tax Act attributable to the period following the cessation of the commercial and promotional activity of a partnership are not part of the trading profit subject to trade tax.

   Categories: Supreme Tax Court cases

   Keywords: Limited Liability Company, compensation ...
3. 26.03.2024

   Compensation upon reversal of loan contract not subject to i ...

   According to a ruling of the Supreme Tax Court, the compensation for use received in the context of the reversal of a consumer loan agreement after revocation is not subject to income tax.

   Categories: Supreme Tax Court cases

   Keywords: compensation payment, loan, capital inve ...
4. 18.03.2024

   ECJ: Method of calculating compensation for early repayment ...

   In a request for a preliminary ruling from the District Court of Ravensburg (Landgericht Ravensburg) the European Court of Justice was asked for an interpretation of Directive 2014/17/EU on the creditor’s right to receive compensation for premature repayment of a loan. The ECJ held that it must be ensured that the calculation by the creditor of its loss of profit from the premature termination, considering the flat rate return on the sum repaid early is fair and objective, and that it does not exceed the creditor’s financial loss.

   Categories: European Court of Justice

   Keywords: compensation payment, early repayment, l ...
5. 01.08.2021

   Additional severance payment for earlier termination of empl ...

   The mutual termination of an employment is normally (also) in the interest of the employer. A severance payment made in return is therefore generally tax privileged. The Lower (regional) Tax Court of Hesse decided that this also applies in the event of an additional payment because of the (premature) termination of the employment relationship prior to the date as originally set in the termination agreement.

   Categories: Tax Court

   Keywords: compensation payment, tax privilege, sev ...
6. 10.11.2017

   Tax Consolidation Groups (“Organschaft”) for income tax purp ...

   According to a decision of the Supreme Tax Court published on 9 November 2017 a profit pooling agreement will not be recognised for tax purposes where the compensation agreement with the external shareholder contains both the right to a variable compensation payment calculated on the basis of the profits of the subsidiary/controlled company/"Organgesellschaft" (“subsidiary”) and a fixed amount.

   Categories: Supreme Tax Court cases

   Keywords: Organschaft, Corporation tax, compensati ...
7. 19.01.2011

   Tax rules on redundancy payments relaxed

   The finance ministry has followed two recent Supreme Tax Court cases and relaxed the spreading rules for the taxation of redundancy payments.

   Categories: Official Pronouncements

   Keywords: Redundancy payments, compensation paymen ...