In coordination with the Supreme Tax Authorities of the federal states (“Länder”), the Federal Ministry of Finance published further tax measures to assist those affected by the Corona crisis in its circular dated 9 April 2020. Continue reading
Tax & Legal
The Federal Ministry of Finance has agreed with the Federal Ministry of Economics (“the Ministries”) on a far-reaching bundle of measures to protect jobs and safeguard companies of all sizes and in all sectors. These measures include tax liquidity support for companies. The measures were set out in a notice released on 13 March 2020. Continue reading
On 28 November 2019 the Federal Ministry of Finance (MoF) issued a revised circular on standards for the proper keeping and storage of books, records and documents in electronic form and for data access (here “GoBD”) – ( IV A 4 – S 0316/19/10003 :001 (2019/0962810). Continue reading
On 7 November 2019, the Bundestag approved the Act on the Further Tax Promotion of Electric Mobility and the Amendment of Further Tax Regulations (Finance Act 2019 – “FA19”) in the version recommended by the Finance Committee of the Bundestag. In its recommendation, the Finance Committee included a number of the Bundesrat’s regulatory proposals. Continue reading
According to various statements of the German Finance Minister Olaf Scholz on 22 May 2019, a system of international minimum taxation will be discussed at the forthcoming G20 (June 2019) and G7 (August 2019) meetings. The aim is to agree such a system (within the terms of the Global Anti-Base Erosion “GloBE” agenda and given the name “BEPS 2.0”) with the other 128 states of the OECD in the Summer of 2020. Continue reading
According to Section 6(1) no. 3 Income Tax Act, non-interest-bearing liabilities with terms of at least 12 months, which do not constitute a deposit or advance payment, are to be discounted, i.e. a fictitious interest component (interest rate 5.5%) is initially deducted from profits and added back to profits in subsequent years as notional interest over the term of the loan.
The directive states that, for certain liabilities of banks, no discounting within the meaning of Section 6(1) no. 3 Income Tax Act should occur. Continue reading
The Ministry of Finance has published a new form for reporting foreign relationships according to Section 138 (2) of the General Tax Code (GTC). The new form replaces the form originally included in the Ministry of Finance’s guidelines on the application of Section 138 (2) and Section 138b of the GTC dated 5 February 2018. Continue reading
Following the discussions of the Conference of Finance Ministers of the Federal States, the government has included in the Finance Bill 2019 amended regulations in respect of so-called “share deals” in real estate transactions. Aim of the proposed rules is a tightening of the financial framework around the indirect “transfers” of real estate held through companies and other associations of persons. The draft bill includes the following amendments: Continue reading
On 8 May 2019, the Federal Ministry of Finance published a draft bill for the proposed legislation on the further tax stimulation of electro-mobility and changes to other tax regulations. The proposed Act on the Further Tax Stimulation of Electric Mobility and on the Amendment of Further Tax Regulations provides for measures for to give tax incentives to environmentally friendly mobility, as well as providing amendments to various areas of tax legislation requiring technical adjustments.further The draft also looks to introduce legislation to combat tax structuring schemes and secure tax revenue. Furthermore, the draft bill integrates makes necessary alignements to EU law and case law of the European Court of Justice (ECJ). The draft bill also contains the expected regulations to limit of the avoidance of real estate transfer tax through so-called share deals. Continue reading
The Federal Ministry of Finance has officially clarified in a circular published in April that fees or remunerations paid for the placement of online advertising are not subject to German withholding tax under Section 50a paragraph 1 No. 3 Income Tax Act.