In a recent circular the German Federal Ministry of Finance (MoF) addresses the tax issues arising from the repayment by third-country corporations of contributions, in relation to both repayments of contributions of nominal capital as well as repayments of contributions made into the free capital reserves. The Supreme Tax Court has previously commented on this set of issues in various previous decisions. In its current circular, the MoF gives guidance on the application of these Supreme Tax Court case law principles.
The Supreme Tax Court has held that work performed in Austria by a German resident is taxable there under the double tax treaty. However, any work performed in a third country is taxable in Germany as the country of residence.
