The circular dated 11 February 2021 covers royalty payments and capital gains in foreign-to-foreign cases where the German nexus is purely based on a registration of rights in a German public register Continue reading
Tax & Legal
On April 14, 2021, after a long legislative process, the Finance Committee of the German parliament (“Bundestag”) has completed its consultation process on the law amending the Real Estate Transfer Tax Act (RETTA). Continue reading
On 24 March 2021, a government draft bill aiming to implement the Anti-Tax Avoidance Directive (ATAD) passed the cabinet (in the following referred to as “Draft”) after lengthy political efforts. Continue reading
On January 20, 2021, the German Government adopted the draft bill on the modernization of the relief from withholding taxes and the certification of withholding tax paid (“Abzugsteuerentlastungsmodernisierungsgesetz; AbzStEntModG). The draft bill includes changes to the withholding tax and relief procedure and an adjustment of the German anti-treaty-shopping rules. However, the envisaged retroactive abolishment of the German sourcing rules for licenses and IP sales transactions based on the mere registration of underlying rights in a German register was dropped. The approval of the bill by the German Government is the first step of the legislative process so further changes of the draft bill may occur and need to be monitored. Continue reading
On 20 November 2020, the Federal Ministry of Finance published a draft bill on the modernization of the relief from and the certification of withholding taxes. The amendments relate, among other things, to the withholding and refund procedure, the anti-treaty shopping regulations and the provisions on non-resident taxation for income arising from licensing or the disposal of rights which are entered in a domestic public register.
On 6 November 2020, the Federal Ministry of Finance issued a circular regarding the obligation for non-resident taxpayers to submit tax returns for license income from rights registered in a domestic register. Read our Newsflash here:
Information on the Finance Bill 2020 (Bundesrat Committees submit recommendations to Bundesrat). Continue reading
At a Federal Press Conference on 6 July 2020, the Ministry of Finance in Berlin made the surprise announcement that, following a decision of the Minister of Finance, Germany will not be exercising the option given in the recent EU Directive to extend the reporting deadlines for DAC 6. Continue reading
This morning both the Federal Ministry of Finance and the Supreme Tax Authorities of the Federal States (“the Länder”) released a circular and a decree (respectively) introducing tax measures to combat the effects of the coronavirus (COVID- 19 /SARS-CoV-2). In this Newsflash we would like to inform you of the measures.
On 10 December 2019, the Federal Ministry of Finance (MoF) provided various federations and associations with a draft bill on the Implementation of the Anti-Tax Avoidance Directive (ATAD Implementation Act) for comment. The decision of the Cabinet has already been scheduled for 18 December 2019. Continue reading