Bank interest
The finance ministry has announced that it considers negative interest charged by banks on deposits as a non-deductible expense and interest paid by banks on refunds of loan handling fees as income...
View ArticleDraft FATCA regulations
The finance ministry has drafted a decree setting forth the administrative and other regulations to be followed by banks in fulfilment of their US FATCA obligations. All but the smallest banks are...
View ArticleProgress payments lead to profit realisation
The finance ministry has decreed that architects, engineers and construction contractors shall realise their profits in accordance with the agreed progress payments reflecting the degree of contract...
View ArticleBuilding installation continues to be VAT-able as building
The finance ministry has directed tax offices not to follow a Supreme Tax Court judgment restricting a reverse chargeable building installation to items of major significance for the construction,...
View ArticleBuilders to treat customer retentions as bad debts
The finance ministry has decreed that builders may reduce their taxable turnover by the amount of a customer retention that cannot be collected for two to five years, unless they could have satisfied...
View ArticleIncome documentation exemption for non-transparent investment funds only...
The finance ministry has clarified that its decree of February 4, 2015 on the documentation requirements to be met by resident investors in non-transparent foreign investment funds applies to funds...
View ArticleNon-typical silent partnership excludes company from Organschaft
The finance ministry has decreed that a company with an untypical silent partner cannot be a member of a corporation tax group. A “typical” silent partnership agreement grants the silent partner a...
View ArticleVAT on asset leasing
The finance ministry has added a passage on asset leasing to its VAT Implementation Decree to the effect that entry by the leasing company into the transaction before delivery of the asset to the...
View ArticleComprehensive car insurance for employees
The finance ministry has decreed that an employer may upgrade an employee’s car insurance to comprehensive cover for business travel without tax consequences for the individual. For 2014, the Income...
View ArticleCorrection of VAT overcharge only after repayment
The finance ministry has issued a decree following a Supreme Tax Court case to the effect that a VAT overcharge may only be corrected once the amount has been repaid to the customer. If a supplier...
View ArticleStaff parties
The finance ministry has issued a decree on the taxation of the benefit in kind from staff parties and similar functions in 2015. For 2015, the Income Tax Act provisions on the benefit in kind for...
View ArticleFATCA regulations finalised
The finance ministry has finalised its decree on the regulations to be followed by reporting banks in accordance with the FATCA treaty of May 31, 2013. On May 31, 2013 Germany and the USA signed a...
View ArticleFull input tax deduction on VAT-free sales to NATO forces
The finance ministry has decreed that the input tax related to VAT-free sales to NATO forces stationed in Germany remains deductible even if the sale in question would have been VAT-free under other...
View ArticleTax information exchange agreements
The finance ministry has issued a decree on the procedures to be followed by tax offices requesting information from other countries under a tax information exchange agreement. The finance ministry has...
View ArticlePurchase of doubtful debts VAT-free
The finance ministry has modified its VAT Implementation decree to follow ECJ and Supreme Tax Court case law to the effect that the purchase and collection of doubtful debts (non-performing loans) is...
View ArticleVAT-free sales with interrupted delivery
The finance ministry has amended its VAT Implementation Decree to allow interruption of the delivery flow for technical transport reasons only, if the intra-community supply or export sale is to remain...
View ArticleTemporary vehicle insurance cover from agent VAT-free
The finance ministry has decreed that the services of insurance agents offering temporary motor vehicle insurance cover on behalf of insurance company are free of VAT. Motor vehicle insurance agents...
View ArticleSelling costs of realising partially taxable capital gains to be deducted...
The finance ministry has decreed that the selling costs of investments leading to a partially taxable gain are to be set against the taxable portion only. In July 2010, the Constitutional Court held...
View ArticleInvestment income withholding tax update
The finance ministry has reissued its slightly modified regulations to be followed by those responsible for deducting tax on investment income at source. The finance ministry has reissued its...
View ArticleForeign businesses may not recover VAT on exports or intra-community supplies
The finance ministry has issued a decree forbidding foreign businesses from reclaiming the VAT invoiced to them on exports or intra-community supplies from Germany. In principle exports and...
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