Tax & Legal

    • nivo slider image nivo slider image nivo slider image nivo slider image

Tax & Legal

EU state aid : Dispute over tax advantages for Luxembourg companies continues

On 21 July 2021 Luxembourg has filed an appeal against the judgment of the General Court of 12 May 2021 in the joined cases T-516/18 and T-525/18 (Luxembourg and Engie Global LNG Holding and Others  / Commission) regarding certain tax rulings concerning the transfer of business activities within the Engie group. Continue reading

Dividend exemption under double tax treaty or abuse of legal forms?

The distribution of profits by a Luxembourg subsidiary (in the legal form of a SARL) to its German parent company (a partnership limited by shares – KGaA) may be an abuse of legal forms where the KGaA provided SARL with a loan and shortly thereafter waived repayment, thereby putting SARL in a position to actually make the profit distribution. Even more when the losses arising from the impairment of the value of SARL because of the distribution are to be used by the shareholders in a tax-effective manner. Continue reading



Continue reading

Federal Constitutional Court: Inadmissible review of norm regarding the solidarity surcharge on corporate income tax credits

In a decision published on 26 November 2021, the Federal Constitutional Court (Bundesverfassungsgericht,) declared as inadmissible a referral by the Supreme Tax Court (Bundesfinanzhof) regarding Section 3 of the Solidarity Surcharge Act 1995 as amended on October 15, 2002 (SSA, 1995). Continue reading

Traffic Light Coalition Agreement

On November 24, the SPD, the Greens and FDP concluded their coalition talks. The party membership of the three parties have yet to approve the Coalition Agreement. Members of the Green party can vote on the Coalition Agreement and the proposals for personnel in the ten days following 24 November 2021. The SPD will hold an extraordinary federal party conference on December 4, 2021 to vote on the Coalition Agreement. The FDP plans to decide on the coalition agreement on December 5, 2021. Continue reading

Whistleblower Directive – transposition into German law

On 16 December 2019, the EU Directive (2019/1937) on the protection of persons who report breaches of Union law (“the whistleblower directive”) came into force. The aim of the directive is to better protect whistleblowers across the EU. EU member states have until 17 December 2021 to transpose the requirements into national law. Continue reading