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Tax & Legal

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Tax & Legal

Distributions from Luxembourg investment company (SICAV) exempt from German income tax


Corporations with at least a 25% share in a Société d’investissement à capital variable (SICAV), a Luxembourg investment company, do not have to pay income tax in Germany on the dividends received from the SICAV in 2010. This also applies if the Luxembourg tax authorities – for whatever reason – did not exercise their right of taxation at source and the distributions hence remained untaxed. Continue reading

Sale of property after gratuitous transfer to children no abuse


If the taxpayer has arranged for the sale of a property to a third party, there is generally no abuse of tax law (abuse of legal forms) if the property was initially transferred to the children free of charge and subsequently sold by the children to the ultimate buyer. According to the decision of the Supreme Tax Court the capital gain is subject to income tax in the hands of the children based on their individual income tax situation. Continue reading

Statutory interest rate levied on late payment or refund of taxes unconstitutional


In a decision on two joint cases published today the Constitutional Court decided that interest incurred on late payment of taxes (back taxes) and the interest paid for tax refunds pursuant to Sections 233a and 238(1) sentence 1 of the German Fiscal Code is not in line with the German Constitution insofar as the interest rate is set at 0.5% per month and for interest periods from 1 January 2014. Continue reading

2021年移転価格通達の公表


2021年7月14日に、ドイツ連邦財務省は移転価格に関する新たな通達(外国税法第1条に基づく所得調整に関する原則)(以下、「2021年移転価格通達」)をウェブサイト上に公表しました。

本2021年移転価格通達は、最終確定していないすべての事案(申告書)に即時適用され、連邦財務省からこれまで公表されていた移転価格に関連する様々な通達(例えば、1983年通達、2005年通達など)に取って代わるものです。

 

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Credit of Canadian withholding tax on dividends also for trade tax?


The Regional Tax Court of Hesse held that withholding tax levied in Canada on dividends distributed by a Canadian corporation to a German corporation should be credited against German trade tax. The tax authorities have in the meantime launched an appeal against this judgment and the case is now pending before the Supreme Tax Court for final clarification. Continue reading

Update: OECD reaches agreement on international tax reform


On 1 July 2021, the OECD reached broad agreement on key points for a fair taxation: 130 countries and jurisdictions have joined a new two-pillar plan to reform international taxation rules and ensure that multinational enterprises pay a fair share of tax wherever they operate. Continue reading