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Tax & Legal

Tax & Legal

Profit participation rights at fixed rate is interest under German-Austrian tax treaty


In a dispute between Germany and Austria on the right of taxation of payments from registered certificates the ECJ held that such interest should be taxed only in the country of residence of the beneficial owner unless such debt-claims explicitly provide the creditor with a participation in the debtor’s profits. Continue reading

Retroactive taxation of interest on refunds of non-deductible taxes unconstitutional?


In 2010 the Supreme Tax Court changed its position and ruled that interest on refunds of non-deductible taxes to be tax-free. In the meantime the court has again been invited to decide whether the subsequent retroactive change in law by the German tax administration to restore the old situation is in line with the constitution.

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