Tax & Legal

Categories: All (11 found)

1. 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 Pronouncements

   Keywords: interest limitation
2. 09.10.2024

   ECJ: Limitation on deduction of interest for an intra-group ...

   In a most recent judgment, the European Court of Justice decided that Article 10a of the Dutch Corporate Income Tax Act providing for an interest deduction limitation rule in wholly artificial arrangements is compatible with EU law. Although this article introduces a difference in treatment between a domestic and a cross-border situation, such a difference is justified based on the need to combat tax fraud and tax evasion.

   Categories: European Court of Justice

   Keywords: interest limitation, interest deduction
3. 15.12.2023

   Bundesrat approves a partial implementation of the Growth Op ...

   On 15 December 2023, the Bundesrat approved the partial implementation of the contents of the Growth Opportunities Act in the Act to Promote the Secondary Credit Market. This includes changes to the interest limitation rule and adjustments resulting from the introduction of the Act for the Modernisation of Partnerships.

   Categories: Official Pronouncements, Legislation

   Keywords: real estate transfer tax, thin capitalis ...
4. 05.09.2023

   Federal Cabinet approves government draft of the Growth Oppo ...

   At its closed-door meeting in Meseberg on 30.8.2023, the Federal Cabinet adopted the government draft for a law to enhance growth opportunities, investment, and innovation as well as tax simplification and tax fairness (Growth Opportunities Act).

   Categories: Tax & Legal News, Legislation

   Keywords: Climate Change, interest limitation, RET ...
5. 24.07.2023

   Interest limitation only if remuneration is for temporary pr ...

   The tax courts had to clarify whether an "arrangement fee" and an "agency and security agency fee" are to be included as interest expenses when determining the interest limitation under Section 4h (1) of the German Income Tax Act. The tax authorities were of the opinion that both fees are to be included insofar as they are payable to the lender. The Supreme Tax Court held that the agency fee must be regarded as interest expense, but that the situation is different for the arrangement fee.

   Categories: Supreme Tax Court cases

   Keywords: Arrangement Fee, interest limitation
6. 18.01.2023

   Update: EU Commission proposal to reduce the imbalance in th ...

   On 11 May 2022, the European Commission published a draft Directive which is intended to mitigate the tax induced debt-equity bias in corporate investment decisions. Technically, this is to be achieved through, on the one hand, an allowance that provides for the deductibility of notional interest on equity and, on the other, by introducing further restrictions on the deductibility of interest on debt.

   Categories: From Europe

   Keywords: loan interest, interest limitation, debt ...
7. 03.03.2016

   Interest limitation – no accumulation of minor loans from si ...

   The Supreme Tax Court has held – contrary to the finance ministry interest limitation decree – that the exception for interest payments to a significant shareholder of not more 10% of the company’s total borrowing cost applies separately for each shareholder, rather than to all significant shareholders cumulatively.

   Categories: Supreme Tax Court cases

   Keywords: interest limitation, significant shareho ...
8. 10.02.2016

   Interest limitation unconstitutional?

   The Supreme Tax Court has requested the Constitutional Court to rule on the conformity of the interest limitation with the constitutional requirement to tax like circumstances alike.

   Categories: Supreme Tax Court cases

   Keywords: interest limitation, EBITDA, interest ex ...
9. 16.04.2014

   Interest limitation unconstitutional?

   The Supreme Tax Court has granted a stay of execution because of doubt as to whether the interest limitation rule meets the constitutional requirement of equal treatment of like matters.

   Categories: Supreme Tax Court cases

   Keywords: interest limitation, unconstitutional, E ...
10. 09.04.2014

    Old “thin cap” rule breaches non-discrimination clause of do ...

    The Supreme Tax Court has held that the application of the pre-2008 “thin capital” rule to disallow interest on related party finance breaches the discrimination prohibition of double tax treaties.

    Categories: Supreme Tax Court cases

    Keywords: interest limitation, thin cat, debt/equi ...
11. 22.05.2012

    Court doubts on interest limitation to third party lenders w ...

    The Supreme Tax Court has resolved a stay of execution of a payment demand due to its constitutional doubts on the interest limitation as applied to a non-group company borrowing from banks with recourse to significant shareholders.

    Categories: Supreme Tax Court cases

    Keywords: interest limitation, third party lenders ...