The Federal Ministry of Finance has responded to the business associations ‘ questions regarding its circular of 11 May 2021 on the revised tax treatment of guarantee commitments. The response includes explanations to key terms used in the circular.
Tax & Legal
In the case of a one-time brokerage service, the entire fee is subject to VAT in the year in which the service is rendered. This also applies if payment of the fee is spread in equal annual installments over the subsequent years. With its decision the European Court of Justice (ECJ) answers the request for a preliminary ruling submitted by the Federal Tax Court and confirms its case law that VAT is due at the time services are supplied, even where payment relating to the transaction carried out was not yet received. Continue reading
According to a decision of the Supreme Tax Court, where, within the framework of a multi-level partnership, an upper partnership, which indirectly participated in an asset transferred at book value under Section 6 (5) Sentence 3 Income Tax Act (“ITA”), changes its legal form into a corporation at book value, this will be considered an infringement of the retention period under Section 6 (5) Sentence 6 ITA
When COVID-19 broke out, G20 members pledged to remain open to trade and investment to limit the damage of the pandemic on their economies. The latest OECD-UNCTAD report monitors investment measures taken by G20 members over the past 6 months. Continue reading
The waiver of a tax exemption under Section 4 No. 9a) VATA can be revoked as long as the tax assessment for the year in which the service was rendered is still open or can still be changed under Section 164 General Tax Code. Section 9 (3) Sentence 2 VATA in the version of the 2004 Act to Accompany the Budget does not regulate the revocation.
The Act on the Defence against Tax Avoidance and Unfair Tax Competition (DTAUTC) of June 25, 2021 (BGBl. I p. 2056 introduced certain administrative and legislative measures in relation to those states and territories (tax jurisdictions) which qualify as non-cooperative tax jurisdictions under Section 2 (1) DTAUTC. Continue reading
In a letter dated October 27, 2021, the German Federal Ministry of Finance sent a draft of the Corporate Income Tax Regulations 2022 (CITR) to the associations for comments. Continue reading
The 2020 budget law (n. 160/2019) introduced two new consumption taxes under the responsibility of the Customs and Monopolies Authority: the tax on the consumption of plastic products with single use or ” MACSI ”(known as the“ Plastic Tax ”) and the tax on the consumption of sweetened beverages (known as the“ Sugar Tax ”). Continue reading
The European Court of Justice (ECJ) dealt with the question if the provision of swimming lessons would be VAT exempt under EU VAT guidelines. The ECJ held that swimming tuition provided by a private swimming school does not fall under the exemption rule as “school and university tuition” in Article 132 (1) (i) and (j) of the VAT Directive 2006/112. Continue reading