On 12 December 2019, the Bundestag adopted the Act for the Mandatory Reporting of Cross-Border Tax Planning Arrangements. The final approval by the Bundesrat will take place on 20 December 2019. Continue reading
Tax & Legal
Does an insurance broker, who makes- in addition to his brokerage activities -a brokered insurance product available to an insurance company, provide VAT-exempt services? The Supreme Tax Court considered this doubtful and decided on 5 September 2019 ( V R 58/17), to refer the question to the Court of Justice of the European Union (ECJ) for a preliminary ruling. Continue reading
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
For the purposes of establishing whether an VAT-exempt intra-Community supply had been made, where other evidence exists establishing that the motor vehicles had been sent to their destination in the other EU country, the assumption of the absence of documentary evidence could not contradict such other evidence.
The proof of the customer’s entrepreneurial status resulting from the VAT ID number cannot be refuted by the mere assumption of a letterbox address. Continue reading
In its judgment of 5 September 2019 (VR 57/17) published on 5 December 2019, the Supreme Tax Court held that the transfer for consideration of endowment policies on the secondary endowment policy market is exempt from VAT. Continue reading
This publication gives investors and fund managers an overview of year-end to-dos and important issues in real estate taxation in 37 tax systems worldwide. Furthermore, it highlights what needs to be considered in international tax planning and the structuring of real estate investments. Continue reading
According to Section 6 (1) of the Foreign Taxes Act (FTA), where a taxpayer’s unlimited tax liability ceases through the taxpayer giving up his German residence/habitual abode, any material shareholdings held in his private property will be deemed as disposed of even without a sale and any capital gain on the deemed disposal will be taxable under Section 17 (1) of the Income Tax Act (ITA). Section 6 (3) FTA provides for this so-called exit tax to be subsequently waived in certain circumstances. The Münster Tax Court held that in addition to the (objective) re-establishment of the unlimited tax liability (i.e. the re-establishment of the German residence/habitual abode), it was also necessary for the taxpayer to provide credible evidence that the will to return existed (subjectively) upon departure. 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 29 November 2019, the Bundesrat approved the Act on the Tax Promotion of Research and Development (Research Subsidy Act). The statute will come into force on 1 January 2020 initially for a 6-month period. Continue reading
In its plenary session last Friday, the Bundesrat approved the Act on the Further Tax Promotion of Electric Mobility and the Amendment of Further Tax Regulations (“Finance Act 2019”) Continue reading