News & Analysis as of

Germany Tax Liability

Morgan Lewis

Federal Fiscal Court Issues Two Rulings on the Requirements for a Consolidated Tax Group for Income Tax Purposes - Legal Insights...

Morgan Lewis on

In two rulings, the Federal Fiscal Court (BFH) ruled in favor of the taxpayer on the requirements for a consolidated tax group for income tax purposes. Managing holding partnership as controlling company (judgment of November...more

Morgan Lewis

Federal Fiscal Court on Trade Tax for Commercially Infected Upper-Tier Partnerships - Legal Insights Germany

Morgan Lewis on

The German Federal Fiscal Court (BFH) confirmed its case law according to which the commercial infection of an upper-tier partnership pursuant to Section 15 para. 3 no. 1 sentence 1 alt. 2 German Income Tax Code...more

McDermott Will & Emery

Economic Ownership of Shares Transferred as Collateral

Dividends from shares are taxable for shareholders, even if the dividends do not remain with them economically. This (not entirely new) finding can be gleaned from a recent Federal Fiscal Court (BFH) ruling in which the...more

DLA Piper

Germany VAT - VAT Grouping: Final Verdict of the German Federal Fiscal Court in Finanzamt - Monthly Indirect Tax Alert – January...

DLA Piper on

The issue of the taxability of intra-group supplies in the context of a VAT group has been of concern to taxpayers for many years. The starting point was the question of whether a VAT group existed between a foundation under...more

Morgan Lewis

Government Draft of Annual Tax Act 2024 Adopted

Morgan Lewis on

The Federal Cabinet adopted the government draft of an Annual Tax Act 2024 (JStG 2024) on June 5, 2024. The government draft largely corresponds to the draft bill of May 17, 2024 and contains a large number of very different...more

BCLP

Updated German tax alert: German Federal Ministry of Finance requires disclosure in cases of licensing of IP registered in Germany

BCLP on

Summary - ..According to the German Federal Ministry of Finance (BMF) the licensing of rights registered in a German register is subject to limited tax liability, even if no further German nexus exists. ..Depending...more

BCLP

German federal ministry of finance requires disclosure in cases of licensing of IP registered in Germany

BCLP on

Even without a German nexus, in cases of a licensing of right registered in Germany an application/disclosure before 30 June 2022 might be necessary. ..According to the German Federal Ministry of Finance (BMF) the...more

A&O Shearman

Rights granted abroad – Will withholding tax still be due in Germany after all?

A&O Shearman on

For months now the treatment of licence fee income generated in Germany under licence agreements concluded between foreign companies where the right granted is merely listed in a public register in Germany has been causing...more

A&O Shearman

Rights granted abroad – Withholding tax due in Germany?

A&O Shearman on

Draft bill published on 19 November 2020 offers hope that an unnecessary tax discussion may be brought to an end A German tax issue has been causing great uncertainty among international corporates since spring 2020: Are...more

Morrison & Foerster LLP

German Registered IP: New Taxation Of Transactions Between Non-German Parties

In a decree published November 6, 2020, the German tax authorities confirmed their view that transactions between non-German parties (e.g., between two U.S. companies) are generally taxable in Germany, if this income is...more

McDermott Will & Emery

[Webinar] Virtual Tax Forum | Critical Tax Strategies for US MNCs with Operations in Germany, Italy, the UK and France - June 4th,...

Evolving and intersecting tax regimes are creating unintended tax exposure, as well as areas of opportunity, for multinational companies (MNCs) operating in European markets. Understand how new tax regulations transect...more

Goodwin

COVID-19 Briefing – Germany Agrees to Unprecedented Package to Protect Businesses

Goodwin on

On 13 March 2020, the German government agreed on a far-reaching package of measures to protect companies and businesses in the German market. The central message is that the Federal State (Bund) and the provinces...more

Hogan Lovells

German withholding taxes in “total buy-out” IP agreements

Hogan Lovells on

In a recently published decision, the German Federal Tax Court (Bundesfinanzhof, BFH) clarified for the first time that a remuneration for the complete transfer of rights in the context of a “total buy out” against a one-off...more

Hogan Lovells

Extraordinary profits created under restructurings according to German law – to be exempt or not to be exempt, that is the...

Hogan Lovells on

Recently the German legislature passed a new law, exempting extraordinary profits created by the waiver of claims under restructurings from income tax liability. ...more

Orrick, Herrington & Sutcliffe LLP

Compliance and Liability Provisions for Online Marketplaces With German Business – Far Reaching New German Government Proposal

On August 10, 2018, the German government officially filed a new tax bill with the German parliament that is directed against VAT avoidance relating to supplies of goods with a German nexus over electronic ("online")...more

Hogan Lovells

German tax treatment of royalties regarding software license and database licenses – Draft guidance of German Federal Ministry of...

Hogan Lovells on

Yesterday the German Federal Ministry of Finance (Bundesfinanzministerium) released a draft circular on the German tax treatment of royalties paid for software and database licenses granted by non-resident licensors....more

WilmerHale

German Cum/Ex-Trades: Enhanced Risks and Industry-Wide Challenges

WilmerHale on

The German and international financial industries and their advisors have come under new pressure to investigate so-called 'cum/ex' trades conducted between 2000 and 2012. For many years, tax authorities and criminal...more

Morrison & Foerster LLP

European M+A News, Winter 2016

Smart Acquisition Structures For Deals In Germany And The UK - What Are the Criteria for Smart Acquisitions via Corporations? - Inbound investment structures seeking to acquire a German or UK corporation should take...more

Skadden, Arps, Slate, Meagher & Flom LLP

"No Gains, Just Pain: Increasingly Uncomfortable Taxation Environment for Private Equity Executives’ Compensation"

Arguing that their compensation should count as capital gains — since it derives from the appreciation in value of portfolio companies — private equity executives in Europe generally have been taxed under the more favorable...more

Troutman Pepper

Who Bears Withholding Tax When a Settlement of Litigation Agreement Is Silent?

Troutman Pepper on

IF A SETTLEMENT AGREEMENT IS SILENT, A DEFENDANT IS NOT REQUIRED TO ‘GROSS UP’ THE SETTLEMENT, AND THE PLAINTIFF WILL SUFFER THE WITHHOLDING TAX BURDEN. What happens when settling parties agree that the defendant will...more

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