Tax & Legal

Categories: All (3 found)

1. 03.06.2025

   Treaty switch-over to tax credit method requires control of ...

   The change in the method for avoiding double taxation of certain foreign profits (the „switch-over“ from exemption to the tax credit method) stated in Section 20 (2) of the Foreign Tax Act requires that the German taxpayer controls the foreign company that generates the profits. This most recent decision of the Supreme Tax Court is contrary to the opinion of the German Ministry of Finance in a circular from 2014.

   Categories: Supreme Tax Court cases

   Keywords: switch over provision
2. 21.10.2024

   No tax exemption of foreign branch income in case of treaty ...

   The Supreme Tax Court decided that the “switch-over" provision in the respective tax treaties with Russia and Romania, which changes the exemption method to the credit method, was to be applied by observing the activity requirements set in Section 8 (1) of the German Foreign Tax Act.

   Categories: Supreme Tax Court cases

   Keywords: foreign tax credit, switch over provisio ...
3. 22.05.2012

   Constitutional Court to rule on treaty override

   The Supreme Tax Court has laid its doubts on the constitutional propriety of the treaty override switch over provision in respect of employment income not taxed in a foreign state with the taxing right under a treaty.

   Categories: Supreme Tax Court cases

   Keywords: treaty override, employment income, swit ...