In a recent ruling, the Supreme Tax Court held that the deemed settlement of final withholding tax under Section 43 (5) Sentence 1, Half-Sentence 1 Income Tax Act (ITA) also applies if the tax has been withheld by the debtor (payer) of the investment income, but not declared and paid over to the tax office. As a result, investment income from a fraudulent pyramid scheme is in principle no longer to be included in the income tax base. Continue reading
Tax & Legal
On 11 December 2017 the European Commission put forward new guidelines on withholding taxes to help Member States reduce costs and simplify procedures for cross-border investors in the EU. Continue reading
An ECJ advocate general has suggested that a tax treaty can justify a hindrance on the free movement of capital from granting a tax credit privilege to recipients of a dividend from a third country but not to those with dividends from a member state. Continue reading
The supreme Tax Court has held that a tax office opinion on tax to be withheld from employees’ salaries should address the facts as presented and should not be obviously incorrect. However, the employer cannot use the procedure for the clarification of legal doubts. Continue reading
The Supreme Tax Court has held that the leasing fees paid to a Liechtenstein company for a German registered lorry are only subject to (withholding) tax to the extent the vehicle is actually used in Germany. Continue reading
The finance ministry has announced the arrangements for claiming withholding tax exemption under the EU Parent/Subsidiary Directive on dividends on shares held in the custody of a bank. Continue reading
The finance ministry has issued two decrees on the procedures to be followed during 2013, the introductory period for the online administration and reporting of employee wage withholding tax. Continue reading
France, Germany, Italy, Spain, the UK and the USA have prepared a model bilateral treaty for the mutual exchange of information on bank accounts held by residents of the other country. Compliance with the treaty would absolve financial institutions from their own specific US reporting requirements under FATCA. Continue reading
The ECJ has held that the withholding tax on a royalty paid to a corporation in another EU country may not be more than the corporation tax rate applied to the income less the directly related costs. Continue reading
The Supreme Tax Court has followed an ECJ case in holding that a foreign corporate shareholder may claim from the local tax office a refund of the tax deducted at source from its dividend.