Tax law in Germany:
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| Main Authors: | , |
|---|---|
| Format: | Book |
| Language: | English |
| Published: |
München
C.H. Beck
2024
|
| Edition: | Third edition |
| Series: | German law accessible
|
| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Physical Description: | XXV, 251 Seiten Illustrationen, Diagramme |
| ISBN: | 9783406793752 |
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| 245 | 1 | 0 | |a Tax law in Germany |c by Florian Haase, Daniela Steierberg |
| 250 | |a Third edition | ||
| 264 | 1 | |a München |b C.H. Beck |c 2024 | |
| 300 | |a XXV, 251 Seiten |b Illustrationen, Diagramme | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
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| adam_text |
SUMMARY
TABLE
OF
CONTENTS
FOREWORD
TO
THE
THIRD
EDITION
.
V
AUTHORS
.
VII
IMPORTANT
ABBREVIATIONS
.
XXV
CHAPTER
1
INTRODUCTION
A.
PURPOSE
OF
THIS
BOOK
.
1
B.
BENEFITS
FOR
READERS
.
2
C.
PECULIARITIES
OF
GERMAN
TAX
LAW
.
2
D.
GOOD
TO
KNOW
-
USEFUL
INFORMATION
AND
RECOMMENDATIONS
FOR
FOREIGN
INVESTORS
.
8
CHAPTER
2
OVERVIEW
OF
THE
GERMAN
TAX
SYSTEM
A.
TAX
SUBJECTS
-
TAX
LIABILITY
.
17
B.
TAXPAYER
.
18
C.
TAXABLE
INCOME
.
20
D.
CORPORATE
INCOME
TAX
.
22
E.
TRADE
TAX
.
22
F.
FINANCIAL
STATEMENTS,
ACCOUNTING,
AND
REPORTING
.
23
G.
ELECTRONIC
TAX
BALANCE
SHEET
.
24
H.
GROUP
TAXATION
.
24
I.
TAX
LOSSES
.
25
J.
VALUE-ADDED
TAX
.
25
K.
REAL
ESTATE
TAX
.
28
L.
REAL
ESTATE
TRANSFER
TAX
.
28
M.
CUSTOMS
AND
EXCISE
DUTIES
WHEN
IMPORTING
GOODS
TO
GERMANY
.
30
N.
TAX
INCENTIVES
FOR
ORGANISATION
OF
GENERAL
INTEREST
-
CHARITABLE
ORGANISATIONS
.
31
O.
EULAW
.
32
P.
TAX
TREATIES
.
37
IX
Q.
ANTI-TREATY/DIRECTIVE-SHOPPING
RULE
.
38
R.
CFC
REGULATIONS
.
38
S.
ASSESSMENT
PROCEDURE
.
40
T.
FILING
AND
PAYMENT
.
41
U.
OBJECTION
TO
TAX
ASSESSMENT
.
41
V.
STATUTE
OF
LIMITATIONS
.
42
W.
GERMAN
TAX
AUTHORITIES
.
42
X.
TAX
AUDITS
.
42
Y.
RULINGS
.
44
CHAPTER
3
INVESTMENT
THROUGH
GERMAN
CORPORATIONS
A.
ESTABLISHMENT
OF
A
CORPORATION
.
45
B.
FORMS
OF
CORPORATIONS
.
46
C.
TAXATION
OF
CORPORATIONS
.
48
D.
TAXATION
OFTHE
SHAREHOLDER
.
50
E.
THIN
CAPITALISATION
RULES
.
50
F.
DIVIDEND
TAXATION
.
53
G.
CAPITAL
GAINS
.
53
H.
HELD
FOR
TRADING
SHARES
.
54
I.
CHANGE
IN
OWNERSHIP
RULE
.
54
J.
TRADE
TAXABLE
INCOME
.
57
K.
TAX
GROUP
.
58
L.
TAX
ASSESSMENT
PERIOD
.
61
M.
ELECTRONIC
TAX
DECLARATION
.
62
CHAPTER
4
INVESTMENTS
THROUGH
GERMAN
PARTNERSHIPS
A.
OVERVIEW
.
63
B.
AVAILABLE
CLASSES
OF
PARTNERSHIPS
.
64
C.
GENERAL
TAXATION
PRINCIPLES
.
65
D.
PROCEDURAL
ASPECTS
OF
INCOME
DETERMINATION
.
78
E.
APPLICATION
OF
TAX
TREATIES
.
79
F.
INBOUND
TAX
PLANNING
WITH
PARTNERSHIPS
-
EXAMPLES
.
85
X
CHAPTERS
INVESTMENTS
THROUGH
GERMAN
PERMANENT
ESTABLISHMENTS
A.
GENERAL
.
99
B.
TAXATION
RULES
.
105
C.
PROFIT
ALLOCATION
.
105
D.
INBOUND
TAX
PLANNING
WITH
PERMANENT
ESTABLISHMENTS
-
EXAMPLES
.
116
CHAPTER
6
TAXATION
OF
DIRECT
BUSINESS
ACTIVITIES
A.
INTRODUCTION
.
124
B.
LIMITED
TAX
LIABILITY
.
124
CHAPTER
7
SPECIAL
TAX
PROBLEMS
OF
CROSS-BORDER
INVESTMENTS
A.
VAT
REFUND
PROBLEMS
.
137
B.
GERMAN
TRADE
TAX
SYSTEM
.
138
C.
THIN
CAPITALISATION
RULES
.
140
D.
CROSS-BORDER
ASPECTS
OF
GERMAN
TAX
GROUPS
.
142
E.
DUAL
CONSOLIDATED
LOSS
RULES
.
143
F.
BOOKKEEPING
ABROAD
.
144
G.
TAXATION
OF
CROSS-BORDER
DIVIDENDS
.
144
H.
TAXATION
OF
ROYALTY
PAYMENTS
.
149
I.
ANTI-ABUSE
REGULATIONS
.
150
J.
HYBRID
ENTITIES
.
153
CHAPTER
8
TAX
PROBLEMS
OF
SPECIAL
INDUSTRIES/BUSINESS
SECTORS
A.
INVESTMENT
FUNDS
.
171
B.
REAL
ESTATE
SECTOR
.
173
C.
SHIPPING
INDUSTRY
.
183
D.
DISTRIBUTION
MODELS:
PRINCIPAL
STRUCTURES
.
187
E.
M&A/PRIVATE
EQUITY
-
CROSS-BORDER
REORGANISATIONS
.
190
F.
NON-PROFIT
ORGANISATIONS
.
193
G.
E-COMMERCE
.
195
H.
LEASING
.
198
XI
CHAPTER
9
HOLDING
COMPANIES
IN
GERMANY
A.
GENERAL
.
203
B.
ACQUISITION
.
204
C.
FINANCING
.
204
D.
COMPARISON
OF
CORPORATION
AND
PARTNERSHIP
AS
HOLDING
COMPANY
.
205
E.
VAT
-
ENTREPRENEUR
STATUS
.
206
F.
LIMITED
TAX
LIABILITY
.
207
G.
TAXATION
OF
PARTNERSHIPS
.
208
H.
PARTICIPATION
EXEMPTION
FOR
CORPORATIONS
.
209
I.
EXITTAXATION
.
212
J.
REORGANISATION
.
214
K.
CFC
REGULATIONS
.
223
CHAPTER
10
TRANSFER
PRICING
FROM
A
GERMAN
PERSPECTIVE
A.
INTRODUCTION
.
230
B.
GENERAL PROVISIONS
GOVERNING
PROFIT
ALLOCATION BETWEEN
RELATED
PARTIES
.
231
C.
GENERAL PRINCIPLES
FOR
THE
ALLOCATION
OF
INCOME
.
234
D.
BUSINESS
RESTRUCTURINGS:
RELOCATION
OF
FUNCTIONS
.
246
XII
TABLE
OF
CONTENTS
FOREWORD
TO
THE
THIRD
EDITION
.
V
AUTHORS
.VII
IMPORTANT
ABBREVIATIONS
.
XXV
CHAPTER
1
INTRODUCTION
A.
PURPOSE
OF
THIS
BOOK
.
1
B.
BENEFITS
FOR
READERS
.
2
C.
PECULIARITIES
OF
GERMAN
TAX
LAW
.
2
I.
HIGH
DEGREE
OF
CODIFICATION
.
2
II.
TAX
COURT
SYSTEM
AND
'
TAX
CLIMATE
'
IN
GERMANY
.
3
III.
EU
LAW
AND
ITS
INFLUENCE
.
5
IV.
GERMAN
FEDERAL
CONSTITUTIONAL
COURT
.
6
V.
TAX
TREATIES
AND
TREATY
OVERRIDES
.
7
VI.
TRADE
TAX
.
8
D.
GOOD
TO
KNOW
-
USEFUL
INFORMATION
AND
RECOMMENDATIONS
FOR
FOREIGN
INVESTORS
.
8
I.
RULING
PRACTICE/APA
PRACTICE
.
8
II.
VAT
FOR
FOREIGN
ENTREPRENEURS
-
PRACTICAL
ISSUES
.
10
1.
GENERAL
INFORMATION
.
10
2.
CONTACT
DETAILS
.
10
3.
APPLICATION
PROCESS
.
10
4.
TAX
REPRESENTATIVE
.
11
III.
COOPERATION
DUTIES
IN
INTERNATIONAL
TAX
CASES
.
12
IV.
TRANSFER
PRICING
DOCUMENTATION
REQUIREMENTS
.
13
V.
DISCLOSURE
DUTIES
FOR
INTERNATIONAL
PAYMENTS
.
14
VI.
ESTIMATION
OF
TAXABLE
INCOME
.
14
VII.
VOLUNTARY
DISCLOSURE
PROCEDURE
.
15
VIII.
GENERAL
RULES
FOR
KEEPING
BOOKS
AND
RECORDS
.
15
CHAPTER
2
OVERVIEW
OF
THE
GERMAN
TAX
SYSTEM
A.
TAX
SUBJECTS
-
TAX
LIABILITY
.
17
B.
TAXPAYER
.
18
C.
TAXABLE
INCOME
.
20
I.
DEPRECIATION
.
20
II.
THIN
CAPITALISATION
RULES
.
21
XIII
D.
CORPORATE
INCOME
TAX
.
22
I.
CORPORATE
INCOME
TAX
FOR
CORPORATIONS
.
22
II.
INCOME
TAX
FOR
PARTNERSHIPS
.
22
E.
TRADE
TAX
.
22
F.
FINANCIAL
STATEMENTS,
ACCOUNTING,
AND
REPORTING
.
23
G.
ELECTRONIC
TAX
BALANCE
SHEET
.
24
H.
GROUP
TAXATION
.
24
I.
TAX
LOSSES
.
25
J.
VALUE-ADDED
TAX
.
25
K.
REAL
ESTATE
TAX
.
28
L.
REAL
ESTATE
TRANSFER
TAX
.
28
I.
INDIRECT
TRANSFER
OF
REAL
ESTATE
PROPERTY
.
29
II.
TAX
EXEMPT
TRANSFERS
.
29
M.
CUSTOMS
AND
EXCISE
DUTIES
WHEN
IMPORTING
GOODS
TO
GERMANY
.
30
N.
TAX
INCENTIVES
FOR
ORGANISATION
OF
GENERAL
INTEREST
-
CHARITABLE
ORGANISA
TIONS
.
31
O.
EULAW
.
32
I.
INDIRECT
TAX
DIRECTIVES
.
32
II.
MERGER
DIRECTIVE
.
33
1.
THE
SUBSTANTIVE
SCOPE
OFTHE
REORGANISATION
TAX
ACT
WITH
RESPECT
TO
THE
MERGER
DIRECTIVE
.
34
2.
THE
PERSONAL
SCOPE
OF
THE
REORGANISATION
TAX
ACT
.
34
III.
PARENT-SUBSIDIARY
DIRECTIVE
.
34
1.
THE
PERSONAL
SCOPE
OFTHE
PARENT-SUBSIDIARY
DIRECTIVE
IMPLEMENT
ED
IN
GERMAN
TAX
LAW
.
35
2.
THE
SUBSTANTIVE
SCOPE
OF
THE
PARENT-SUBSIDIARY
DIRECTIVE
IMPLE
MENTED
IN
GERMAN
TAX
LAW
.
35
IV.
INTEREST
AND
ROYALTIES
DIRECTIVE
.
36
1.
THE
PERSONAL
SCOPE
OF
THE
INTEREST
AND
ROYALTIES
DIRECTIVE
AS
IM
PLEMENTED
IN
GERMAN
TAX
LAW
.
36
2.
THE
SUBSTANTIVE
SCOPE
OFTHE
INTEREST
AND
ROYALTIES
DIRECTIVE
AS
IMPLEMENTED
IN
GERMAN
TAX
LAW
.
36
P.
TAXTREATIES
.
37
I.
GENERAL
.
37
II.
SUBJECT
TO
TAX
CLAUSES
.
37
Q.
ANTI-TREATY/DIRECTIVE-SHOPPING
RULE
.
38
R.
CFC
REGULATIONS
.
38
S.
ASSESSMENT
PROCEDURE
.
40
T.
FILING
AND
PAYMENT
.
41
U.
OBJECTION
TO
TAX
ASSESSMENT
.
41
V.
STATUTE
OF
LIMITATIONS
.
42
XIV
W.
GERMAN
TAX
AUTHORITIES
.
42
X.
TAX
AUDITS
.
42
Y.
RULINGS
.
44
CHAPTER
3
INVESTMENT
THROUGH
GERMAN
CORPORATIONS
A.
ESTABLISHMENT
OF
A
CORPORATION
.
45
B.
FORMS
OF
CORPORATIONS
.
46
I.
STOCK
CORPORATION
.
46
II.
LIMITED
LIABILITY
COMPANY
.
46
III.
SOCIETAS
EUROPAEA
.
47
IV.
COMMERCIAL
REGISTER
.
47
C.
TAXATION
OF
CORPORATIONS
.
48
D.
TAXATION
OF
THE
SHAREHOLDER
.
50
E.
THIN
CAPITALISATION
RULES
.
50
I.
ESCAPE
CLAUSES
.
51
II.
EXEMPTION
FROM
ESCAPE
CLAUSES
.
51
III.
DEFINITIONS
.
52
IV.
INTEREST
EXPENSE
CARRY-FORWARD
.
52
V.
EBITDA
CARRY-FORWARD
.
52
F.
DIVIDEND
TAXATION
.
53
G.
CAPITAL
GAINS
.
53
H.
HELD
FOR
TRADING
SHARES
.
54
I.
CHANGE
IN
OWNERSHIP
RULE
.
54
I.
GENERAL
.
54
II.
CHANGE-IN-OWNERSHIP
RULE
SINCE
1
JANUARY
2008
.
55
III.
EXCEPTIONS
.
55
J.
TRADE
TAXABLE
INCOME
.
57
I.
ADD-BACKS
.
57
II.
DEDUCTIONS
.
58
K.
TAXGROUP
.
58
I.
GENERAL
.
58
II.
LEGAL
CONDITIONS
.
59
III.
ADVANTAGES
.
59
IV.
RISKS
.
60
V.
CONSOLIDATED
RETURN
-
TAX
GROUP
.
60
VI.
FUTURE
OF
GERMAN
FISCAL
UNITY
RULES
.
61
L.
TAX
ASSESSMENT
PERIOD
.
61
M.
ELECTRONIC
TAX
DECLARATION
.
62
XV
CHAPTER
4
INVESTMENTS
THROUGH
GERMAN
PARTNERSHIPS
A.
OVERVIEW
.
63
B.
AVAILABLE
CLASSES
OF
PARTNERSHIPS
.
64
I.
LEGAL
CLASSIFICATION
.
64
1.
GENERAL
.
64
2.
SHORT
EXPLANATIONS
.
64
II.
TAX
LAW
CLASSIFICATION
.
65
C.
GENERAL
TAXATION
PRINCIPLES
.
65
I.
DIFFERENT
CLASSES
OF
PARTNERSHIP
IN
GERMAN
TAX
LAW
.
65
1.
COMMERCIAL
PARTNERSHIPS
.
66
A)
CO-ENTREPRENEURSHIP
.
66
AA)
CO-ENTREPRENEURIAL
RISK
.
67
BB)
CO-ENTREPRENEURIAL
INITIATIVE
.
67
B)
COMMERCIAL
ACTIVITY/COMMERCIAL
INCOME
.
67
AA)
GENERAL
.
67
BB)
INTENTION
TO
EARN
PROFIT
.
68
CC)
COMMERCIAL
ACTIVITY
VERSUS
ASSET
ADMINISTRATION
ACTIVITY.
.
68
DD)
'
INFECTION
'
RULE
.
69
2.
DEEMED-COMMERCIAL
PARTNERSHIPS
.
70
3.
NON-COMMERCIAL
PARTNERSHIPS
.
70
II.
RELATIONSHIP
BETWEEN
PARTNERS
AND
'
THEIR
'
PARTNERSHIP
.
71
1.
SPECIAL
REMUNERATION
.
71
2.
SPECIAL
BUSINESS
ASSETS
.
72
III.
SPECIAL
ISSUES
.
73
1.
TRANSFER
OF
ASSETS
BETWEEN
PARTNERSHIPS
AND
PARTNERS
.
73
2.
SALE
OF
PARTNERSHIP
INTEREST
AND
WINDING-UP
.
74
3.
FICTITIOUS
'
SPLIT
OF
BUSINESS
'
.
75
4.
OPTION
TO
CORPORATE
TAXATION
.
76
A)
BASIC
PRINCIPLES
.
76
B)
FISCAL
UNITY
.
76
C)
IMPACT
ON
RELATIONSHIP
TO
EU
DIRECTIVES
.
77
D)
IMPACT
ON
REALTIONSHIP
TO
DOUBLE
TAXATION
AGREEMENTS
.
77
IV.
TAX
RATES/EARNINGS
RETENTION
.
77
D.
PROCEDURAL
ASPECTS
OF
INCOME
DETERMINATION
.
78
I.
GENERAL
.
78
II.
RESTRICTIONS
DUE
TO
§
15A
ESTG
REGARDINGLOSSES
.
79
III.
UNIFORM
DETERMINATION OF
PROFITS
.
79
E.
APPLICATION
OF
TAX
TREATIES
.
79
I.
COMMERCIAL
PARTNERSHIPS
.
79
1.
GENERAL
.
79
A)
ADMINISTRATIVE
CIRCULAR
-
TAX
TREATIES
AND
PARTNERSHIPS
.
79
B)
BASIC
PRINCIPLES
.
80
C)
DENIAL
OF
TREATY
ENTITLEMENT
AND
CONSEQUENCES
.
80
D)
TRIANGULAR
CASES
.
81
2.
SPECIAL
REMUNERATION
.
81
II.
DEEMED-COMMERCIAL
PARTNERSHIPS
.
82
XVI
III.
NON-COMMERCIAL
PARTNERSHIP
.
83
IV.
INBOUND-INVESTMENT
THROUGH
FOREIGN
PARTNERSHIPS
.
83
F.
INBOUND
TAX
PLANNING
WITH
PARTNERSHIPS
-
EXAMPLES
.
85
I.
USING
PARTNERSHIPS
TO
AVOID
THE
GERMAN
INTEREST
BARRIER
RULE
.
85
1.
STRUCTURE
CHART
.
85
2.
EXPLANATION
.
85
II.
OUTBOUND
INVESTMENTS
WITH
PARTNERSHIPS
.
87
1.
STRUCTURE
CHART
.
87
2.
EXPLANATION
.
87
III.
SIMPLIFICATION
OF
STRUCTURES
WITH
PARTNERSHIPS
.
89
1.
STRUCTURE
CHART
.
89
2.
EXPLANATION
.
89
IV.
STEP-UP
PLANNING
WITH
PARTNERSHIPS
.
90
1.
STRUCTURE
CHART
.
90
2.
EXPLANATION
.
90
V.
AVOIDING
RETT
WITH
PARTNERSHIPS
.
91
1.
STRUCTURE
CHART
.
91
2.
EXPLANATIONS
.
91
VI.
TAX
PLANNING
WITH
NON-EU/NON-TREATY
COUNTRIES
.
94
1.
STRUCTURE
CHART
.
94
2.
EXPLANATION
.
95
VII.
CREATION
OF
DIVISIONS
FOR
REORGANISATION
PURPOSES
.
96
1.
STRUCTURE
CHART
.
96
2.
EXPLANATION
.
96
VIII.
IMMEDIATE
LOSS
UTILISATION
THROUGH
PARTNERSHIPS
.
97
1.
STRUCTURE
CHART
.
97
2.
EXPLANATION
.
97
CHAPTERS
INVESTMENTS
THROUGH
GERMAN
PERMANENT
ESTABLISHMENTS
A.
GENERAL
.
99
I.
INTRODUCTION
.
99
1.
LEGAL
PERSPECTIVE
.
99
2.
ALLOCATION
OF
TAXATION
RIGHTS
BETWEEN
STATES
.
99
II.
WHAT
CONSTITUTES
A
PERMANENT
ESTABLISHMENT?
.
100
1.
NATIONAL
TAX
LAW
VS
OECD
MODEL
TAX
CONVENTION
.
100
2.
§12
AO
.
100
A)
PLACE
OF
BUSINESS
.
101
B)
'
FIXED
'
PLACE
.
101
C)
DURATION
.
102
D)
ENTITLEMENT
TO
USE
.
102
E)
PREPARATORY
OR
ANCILLARY
ACTIVITIES
.
102
F)
CONSTRUCTION
SITES
.
103
G)
SERVICES
.
104
III.
PERMANENT
REPRESENTATIVE
.
104
B.
TAXATION
RULES
.
105
XVII
C.
PROFIT
ALLOCATION
.
105
I.
BASIC
PROBLEMS
.
105
II.
PROFIT
DETERMINATION:
ELIGIBLE
METHODS
.
107
1.
DIRECTMETHOD
.
108
2.
INDIRECT
METHOD
.
108
III.
ALLOCATION
OF
ASSETS
AND
PROFITS
AND
OTHER
PROBLEMS
.
109
1.
ATTRIBUTION
OF
ASSETS
.
109
2.
ATTRIBUTION
OF
BUSINESS
EXPENDITURES
AND
BUSINESS
INCOME
.
110
3.
FUNDING
OF
THE
PERMANENT
ESTABLISHMENT
.
112
4.
TRANSFER
OF
ASSETS
.
113
5.
CURRENCY
EXCHANGE
RATE
PROBLEMS
.
114
6.
BOOKKEEPING
OF
THE
PERMANENT
ESTABLISHMENT
.
115
D.
INBOUND
TAX
PLANNING
WITH
PERMANENT
ESTABLISHMENTS
-
EXAMPLES
.
116
I.
AVOIDING
THE
INTEREST
BARRIER
RULE
WITH
A
PERMANENT
ESTABLISHMENT
.
116
1.
STRUCTURE
CHART
.
116
2.
EXPLANATION
.
116
II.
SIMPLIFICATION
OF
PERMANENT
ESTABLISHMENT
STRUCTURE
.
118
1.
STRUCTURE
CHART
.
118
2.
EXPLANATION
.
118
III.
LOSS
UTILISATION
WITH
PERMANENT
ESTABLISHMENT
STRUCTURE
.
120
1.
STRUCTURE
CHART
.
120
2.
EXPLANATION
.
120
IV.
TAX
CREDIT
PERMANENT
ESTABLISHMENT
STRUCTURE
FOR
FOREIGN
INVESTORS
.
122
1.
STRUCTURE
CHART
.
122
2.
EXPLANATION
.
122
CHAPTER
6
TAXATION
OF
DIRECT
BUSINESS
ACTIVITIES
A.
INTRODUCTION
.
124
B.
LIMITED
TAX
LIABILITY
.
124
I.
'
GENERAL
TAX
ASSESSMENT
PROCEDURE-INCOME
'
.
124
II.
'
WHT-INCOME
'
.
125
1.
DIVIDENDS
.
125
A)
INDIVIDUALS
.
125
B)
CORPORATIONS
.
125
C)
WHT
ISSUES
.
126
2.
INTEREST
INCOME
.
126
A)
GENERAL
.
126
B)
INDIVIDUALS
.
126
C)
CORPORATIONS
.
127
3.
SALARIES
.
127
4.
CONSTRUCTION
WORKS
.
127
5.
ARTISTS,
ATHLETES
AND
JOURNALISTS
.
128
A)
GENERAL
.
128
B)
WHT
COLLECTION
.
129
C)
ECJ
CASE
LAW
.
130
6.
EXPLOITATION
OF
INTELLECTUAL
PROPERTY
RIGHTS
.
133
XVIII
III.
SPECIAL
REFUND
PROCEDURE
FOR
WHT
.
134
1.
DIVIDENDS
.
134
2.
INCOME
UNDER
§
50A(L)
NO.
1
ESTG
.
135
CHAPTER
7
SPECIAL
TAX
PROBLEMS
OF
CROSS-BORDER
INVESTMENTS
A.
VAT
REFUND
PROBLEMS
.
137
B.
GERMAN TRADE
TAX
SYSTEM
.
138
I.
CALCULATION
OF
TRADE
TAX
.
138
II.
TAXABLE
INCOME
.
138
1.
ADD-BACKS
.
139
2.
DEDUCTIONS
.
139
C.
THIN
CAPITALISATION
RULES
.
140
I.
EXEMPTION
FROM
ESCAPE
CLAUSES
.
140
II.
DEFINITIONS
.
141
III.
INTEREST
EXPENSE
CARRY-FORWARD
.
141
IV.
EBITDA
CARRY-FORWARD
.
142
D.
CROSS-BORDER
ASPECTS
OF
GERMAN
TAX
GROUPS
.
142
E.
DUAL
CONSOLIDATED
LOSS
RULES
.
143
F.
BOOKKEEPING
ABROAD
.
144
G.
TAXATION
OF
CROSS-BORDER
DIVIDENDS
.
144
I.
GENERAL
.
144
II.
PORTFOLIO
DIVIDENDS
.
145
III.
HIDDEN
PROFIT
DISTRIBUTIONS
.
146
IV.
HIDDEN
EQUITY
CONTRIBUTION
.
148
H.
TAXATION
OF
ROYALTY
PAYMENTS
.
149
I.
ANTI-ABUSE
REGULATIONS
.
150
I.
BACKGROUND
.
150
II.
NEW
PROVISION:
§
50D(3)
ESTG
.
150
III.
PERSONAL
SCOPE
OF
APPLICATION
.
151
IV.
SUBSTANTIVE
SCOPE
OF
APPLICATION
.
151
V.
POSSIBILITY
OF
COUNTER-EVIDENCE
.
152
VI.
MISCELLANEOUS
.
152
J.
HYBRID
ENTITIES
.
153
I.
DIVIDENDS
.
153
1.
THE
PERSONAL
SCOPE
OF
THE
PARENT-SUBSIDIARY
DIRECTIVE
IMPLEMENT
ED
IN
GERMAN
TAX
LAW
.
153
2.
THE
SUBSTANTIVE
SCOPE
OFTHE
PARENT-SUBSIDIARY
DIRECTIVE
IMPLEMENTED
IN
GERMAN
TAX
LAW
.
154
3.
IMPLEMENTATION
OF
ART.4(1)(A)
PARENT-SUBSIDIARY
DIRECTIVE
.
154
4.
APPLICATION
OF
§
43B
ESTG
WITH
RESPECT
TO
HYBRID
ENTITIES
.
155
II.
ROYALTY
PAYMENTS
.
156
1.
THE
PERSONAL
SCOPE
OFTHE
INTEREST
AND
ROYALTIES
DIRECTIVE
AS
IMPLEMENTED
IN
GERMAN
TAX
LAW
.
156
XIX
2.
THE
SUBSTANTIVE
SCOPE
OF
THE
INTEREST
AND
ROYALTIES
DIRECTIVE
AS
IMPLEMENTED
IN
GERMAN
TAX
LAW
.
157
3.
APPLICATION
OF
§
50G
ESTG
WITH
RESPECT
TO
HYBRID
ENTITIES
.
157
III.
REORGANISATIONS
.
158
1.
THE
SUBSTANTIVE
SCOPE
OFTHE
REORGANISATION
TAX
ACT
WITH
RESPECT
TO
THE
MERGER
DIRECTIVE
.
159
2.
THE
PERSONAL
SCOPE
OF
THE
REORGANISATION
TAX
ACT
.
159
3.
IMPLEMENTATION
OF
ART.
4(2)
MERGER
DIRECTIVE
.
159
4.
IMPLEMENTATION
OF
ART.
8(3)
MERGER
DIRECTIVE
.
160
5.
IMPLEMENTATION
OFART.
10A
MERGER
DIRECTIVE
2005/19/EC
.
160
IV.
IMPLEMENTATION
OFTHE
OECD
APPROACH
TO
HYBRID
ENTITIES
IN
GERMAN
LEGISLATION
AND
TAX
TREATIES
.
161
1.
ISSUES
ARISING
FROM
THE
APPLICATION
OF
DIFFERENT
TREATY
ARTICLES
TO
INCOME
EARNED
BY
A
HYBRID
ENTITY
.
166
2.
SPECIAL
REMUNERATIONS
.
166
V.
MOST
RECENT
CHANGES
FROM
2021
ONWARDS
.
168
CHAPTER
8
TAX
PROBLEMS
OF
SPECIAL
INDUSTRIES/BUSINESS
SECTORS
A.
INVESTMENT
FUNDS
.
171
I.
CLOSED-END
FUNDS
(KG
STRUCTURES)
.
171
II.
OPEN-ENDED
FUNDS
.
172
1.
MUTUAL
FUNDS
.
172
2.
SPECIAL
FUNDS
.
173
B.
REAL
ESTATE
SECTOR
.
173
I.
VAT.
174
II.
REAL
ESTATE
TRANSFER
TAX
.
175
1.
RETT-BLOCKER
STRUCTURE
FOR
ACQUISITION
OF
SHARES
.
175
A)
STRUCTURE
CHART
.
175
B)
EXPLANATION
.
176
2.
STRUCTURE
FOR
ACQUISITION
OF
PARTNERSHIP
INTEREST
.
177
A)
STRUCTURE
CHART
.
177
B)
EXPLANATION
.
178
3.
INTRA-GROUP
REORGANISATIONS
.
178
A)
STRUCTURE
CHART
.
178
B)
EXPLANATION
.
179
4.
HIVE-DOWN
RESTRUCTURING
USING
A
RETT-BLOCKER
KG
.
180
A)
STRUCTURE
CHART
.
180
B)
EXPLANATION
.
181
5.
TAX
EFFICIENT
INTERPOSITION
OF
GMBH
.
181
A)
STRUCTURE
CHART
.
181
B)
EXPLANATION
.
182
C.
SHIPPING
INDUSTRY
.
183
I.
GERMAN
TONNAGE
TAX
SYSTEM
.
183
II.
ART.
8
OECD
MTC
AND
THE
GERMAN
APPROACH
.
184
1.
GENERAL
.
184
XX
2.
REFLECTION
OF
ART.
8
IN
GERMAN
TAX
TREATIES
.
184
A)
ART.8(L)
.
184
B)
ART.
8(2)
.
185
C)
ART.
8(3)
.
185
D)
ART.
8(4)
.
185
3.
MAJOR
PROBLEMS
IN
PRACTICE
.
185
A)
PREPARATORY
AND
ANCILLARY
ACTIVITIES
.
185
B)
CONTAINERS
.
186
C)
BAREBOAT
CHARTER
.
186
D)
INTERNATIONAL
TRAFFIC
.
187
E)
INVESTMENT
INCOME
.
187
D.
DISTRIBUTION
MODELS:
PRINCIPAL
STRUCTURES
.
187
E.
M&A/PRIVATE
EQUITY
-
CROSS-BORDER
REORGANISATIONS
.
190
F.
NON-PROFIT
ORGANISATIONS
.
193
I.
GENERAL
.
193
II.
TAX-PRIVILEGED
PURPOSES
.
193
1.
PUBLIC-BENEFIT
PURPOSES
.
193
2.
CHARITABLE
PURPOSES
.
194
3.
RELIGIOUS
PURPOSES
.
194
III.
GENERAL
REQUIREMENTS
FOR
TAX
PRIVILEGE
.
195
G.
E-COMMERCE
.
195
I.
DIFFICULTIES
WITH
TAXING
E-COMMERCE
.
195
II.
MAIN
PROBLEMS
OF
DIRECT
TAXATION
.
196
III.
VALUE-ADDED
TAX
.
197
H.
LEASING
.
198
I.
GENERAL
ADVANTAGES
OFLEASING
.
198
II
.
TAX
BALANCE
SHEET
ISSUES
.
198
II
I.
RELEVANT
CATEGORY
OF
INCOME
.
200
CHAPTER
9
HOLDING
COMPANIES
IN
GERMANY
A.
GENERAL
.
203
B.
ACQUISITION
.
204
C.
FINANCING
.
204
D.
COMPARISON
OF
CORPORATION
AND
PARTNERSHIP
AS
HOLDING
COMPANY
.
205
E.
VAT
-
ENTREPRENEUR
STATUS
.
206
F.
LIMITED
TAX
LIABILITY
.
207
G.
TAXATION
OF
PARTNERSHIPS
.
208
H.
PARTICIPATION
EXEMPTION
FOR
CORPORATIONS
.
209
I.
DIVIDEND
INCOME
.
209
II
.
CAPITAL
GAINS
.
210
II
I.
HELD-FOR-TRADING
SHARES
.
210
IV
.
WITHHOLDING
TAXES
.
211
XXI
I.
EXIT
TAXATION
.
212
I.
GENERAL
.
212
II.
EXCEPTION
AND
EU
LAW
.
213
J.
REORGANISATION
.
214
I.
GENERAL
PRINCIPLES
.
214
II.
QUALIFYING
ASSETS
.
215
III.
TYPES
OF
REORGANISATION
.
215
IV.
CONVERSION
FROM
CORPORATION
TO
PARTNERSHIP
.
216
V.
MERGER
OF
A
CORPORATION
INTO
A
GERMAN
PARTNERSHIP
.
217
VI.
MERGER
OF
CORPORATIONS
.
217
VII.
DEMERGER
OF
CORPORATIONS
.
218
VIII.
HIVE-DOWN
INTO
CORPORATIONS
.
219
IX.
SHARE-FOR-SHARE
EXCHANGES
.
220
X.
CONVERSION
OF
PARTNERSHIP
INTO
CORPORATION
.
222
XI.
HIVE-DOWN
OF
SINGLE
ASSETS
INTO
PARTNERSHIP
.
222
K.
CFC
REGULATIONS
.
223
I.
LOWTAXATION
.
225
II.
DE
MINIMIS
THRESHOLD
.
226
III.
LOWER
TIER
INTERMEDIARY
COMPANIES
.
226
IV.
ESCAPE
RULE
FOR
EU
COMPANIES
.
227
V.
INCOME
AMOUNT
COMPUTATION
.
228
VI.
TAXCREDIT
.
229
VII.
CAPITAL
GAINS
.
229
CHAPTER
10
TRANSFER
PRICING
FROM
A
GERMAN
PERSPECTIVE
A.
INTRODUCTION
.
230
B.
GENERAL
PROVISIONS
GOVERNING
PROFIT
ALLOCATION
BETWEEN
RELATED
PARTIES
.
231
I.
NATIONAL
GERMAN
TAX
LAW
.
231
1.
PROFIT
ALLOCATION
UNDER
DOUBLE
TAXATION
AGREEMENTS
.
232
2.
HIDDEN
PROFIT
DISTRIBUTION
AND
HIDDEN
CAPITAL
CONTRIBUTION
.
233
3.
§1
ASTG
.
233
II.
BUSINESS
RELATIONS
TO
AFFILIATED
PERSONS
.
234
C.
GENERAL
PRINCIPLES
FOR
THE
ALLOCATION
OF
INCOME
.
234
I.
THE
ARM
'
S
LENGTH
TEST
.
234
II.
STANDARD
TRANSFER
PRICING
METHODS
.
236
1.
COMPARABLE
UNCONTROLLED
PRICE
METHOD
.
236
2.
RESALE
PRICE
METHOD
.
236
3.
COST
PLUS
METHOD
.
236
4.
GENERAL:
SET-OFF
OF
BENEFITS
.
237
5.
APPLICATION
OF
THE
METHODS
.
237
III.
GOODS
AND
SERVICES
.
238
1.
SUPPLY
OF
GOODS
AND
SERVICES
.
238
A)
EXPLANATIONS
.
238
B)
EXAMPLES
.
239
2.
COMMERCIAL
SERVICES
.
240
XXII
3.
ADVERTISING
COSTS
.
240
4.
MARKET
PENETRATION
COSTS
.
240
5.
START-UP
COSTS
.
241
IV.
INTEREST
AND
SIMILAR
REMUNERATION
.
241
1.
GENERAL
.
241
2.
RELEVANT
INTEREST
RATES
.
241
3.
GUARANTEES
AND
SIMILAR
OBLIGATIONS
.
242
4.
TRANSFER
OF
INTANGIBLE
ASSETS
.
242
5.
ADMINISTRATIVE
SERVICES
WITHIN
THE
GROUP
.
243
A)
GENERAL
.
243
B)
REQUIREMENTS
FOR
INTER-COMPANY
CHARGES
.
243
C)
EXAMPLES
.
244
D)
ARM
'
S
LENGTH
PRICES
.
244
6.
NEW
JUDGMENTS
ON
INTER-COMPANY
FINANCING
.
245
A)
JUDGMENT
OF
18
MAY
2021
(I
R
4/17)
.
245
B)
JUDGMENT
OF
18
MAY
2021
(I
R
62/17)
.
245
C)
JUDGMENT
OF
9
JUNE
2021
(I
R
32/17)
.
246
D.
BUSINESS
RESTRUCTURINGS:
RELOCATION
OF
FUNCTIONS
.
246
I.
INTRODUCTION
.
246
II.
OECD
TRANSFER
PRICING
GUIDELINES
.
247
III.
GERMAN
APPROACH
TO
BUSINESS
RESTRUCTURINGS
.
248
1.
GENERAL
.
248
2.
SPECIAL
ASPECTS
OF
SPECIFIC
RELOCATIONS
OF
FUNCTIONS
.
248
A)
RELOCATION
OFPRODUCTION
.
248
AA)
RELOCATION
OF
PRODUCTION
TO
A
MANUFACTURER
.
248
BB)
REORGANISATION
FROM
PRODUCTION
TO
TOLL
MANUFACTURER
.
249
CC)
RELOCATION
OF
A
PRODUCTION
TO
A
TOLL
MANUFACTURER
.
249
DD)
REORGANISATION
FROM
TOLL
MANUFACTURER
TO
MANUFACTURER
.
.
250
B)
RELOCATION
OF
DISTRIBUTION
.
250
AA)
RELOCATION
OF
DISTRIBUTION
TO
A
DISTRIBUTOR
(OR
AUTHORISED
DEALER)
.
250
BB)
REORGANISATION
OF
A
FULL
DISTRIBUTOR
TO
COMMISSION
AGENT
OR
AGENT
.
250
CC)
RELOCATION
OF
RESEARCH
AND
DEVELOPMENT
.
251
DD)
RELOCATION
OF
SERVICES
.
252
EE)
RELOCATION
OF
PURCHASING
DEPARTMENT
.
252
XXIII |
| adam_txt |
SUMMARY
TABLE
OF
CONTENTS
FOREWORD
TO
THE
THIRD
EDITION
.
V
AUTHORS
.
VII
IMPORTANT
ABBREVIATIONS
.
XXV
CHAPTER
1
INTRODUCTION
A.
PURPOSE
OF
THIS
BOOK
.
1
B.
BENEFITS
FOR
READERS
.
2
C.
PECULIARITIES
OF
GERMAN
TAX
LAW
.
2
D.
GOOD
TO
KNOW
-
USEFUL
INFORMATION
AND
RECOMMENDATIONS
FOR
FOREIGN
INVESTORS
.
8
CHAPTER
2
OVERVIEW
OF
THE
GERMAN
TAX
SYSTEM
A.
TAX
SUBJECTS
-
TAX
LIABILITY
.
17
B.
TAXPAYER
.
18
C.
TAXABLE
INCOME
.
20
D.
CORPORATE
INCOME
TAX
.
22
E.
TRADE
TAX
.
22
F.
FINANCIAL
STATEMENTS,
ACCOUNTING,
AND
REPORTING
.
23
G.
ELECTRONIC
TAX
BALANCE
SHEET
.
24
H.
GROUP
TAXATION
.
24
I.
TAX
LOSSES
.
25
J.
VALUE-ADDED
TAX
.
25
K.
REAL
ESTATE
TAX
.
28
L.
REAL
ESTATE
TRANSFER
TAX
.
28
M.
CUSTOMS
AND
EXCISE
DUTIES
WHEN
IMPORTING
GOODS
TO
GERMANY
.
30
N.
TAX
INCENTIVES
FOR
ORGANISATION
OF
GENERAL
INTEREST
-
CHARITABLE
ORGANISATIONS
.
31
O.
EULAW
.
32
P.
TAX
TREATIES
.
37
IX
Q.
ANTI-TREATY/DIRECTIVE-SHOPPING
RULE
.
38
R.
CFC
REGULATIONS
.
38
S.
ASSESSMENT
PROCEDURE
.
40
T.
FILING
AND
PAYMENT
.
41
U.
OBJECTION
TO
TAX
ASSESSMENT
.
41
V.
STATUTE
OF
LIMITATIONS
.
42
W.
GERMAN
TAX
AUTHORITIES
.
42
X.
TAX
AUDITS
.
42
Y.
RULINGS
.
44
CHAPTER
3
INVESTMENT
THROUGH
GERMAN
CORPORATIONS
A.
ESTABLISHMENT
OF
A
CORPORATION
.
45
B.
FORMS
OF
CORPORATIONS
.
46
C.
TAXATION
OF
CORPORATIONS
.
48
D.
TAXATION
OFTHE
SHAREHOLDER
.
50
E.
THIN
CAPITALISATION
RULES
.
50
F.
DIVIDEND
TAXATION
.
53
G.
CAPITAL
GAINS
.
53
H.
HELD
FOR
TRADING
SHARES
.
54
I.
CHANGE
IN
OWNERSHIP
RULE
.
54
J.
TRADE
TAXABLE
INCOME
.
57
K.
TAX
GROUP
.
58
L.
TAX
ASSESSMENT
PERIOD
.
61
M.
ELECTRONIC
TAX
DECLARATION
.
62
CHAPTER
4
INVESTMENTS
THROUGH
GERMAN
PARTNERSHIPS
A.
OVERVIEW
.
63
B.
AVAILABLE
CLASSES
OF
PARTNERSHIPS
.
64
C.
GENERAL
TAXATION
PRINCIPLES
.
65
D.
PROCEDURAL
ASPECTS
OF
INCOME
DETERMINATION
.
78
E.
APPLICATION
OF
TAX
TREATIES
.
79
F.
INBOUND
TAX
PLANNING
WITH
PARTNERSHIPS
-
EXAMPLES
.
85
X
CHAPTERS
INVESTMENTS
THROUGH
GERMAN
PERMANENT
ESTABLISHMENTS
A.
GENERAL
.
99
B.
TAXATION
RULES
.
105
C.
PROFIT
ALLOCATION
.
105
D.
INBOUND
TAX
PLANNING
WITH
PERMANENT
ESTABLISHMENTS
-
EXAMPLES
.
116
CHAPTER
6
TAXATION
OF
DIRECT
BUSINESS
ACTIVITIES
A.
INTRODUCTION
.
124
B.
LIMITED
TAX
LIABILITY
.
124
CHAPTER
7
SPECIAL
TAX
PROBLEMS
OF
CROSS-BORDER
INVESTMENTS
A.
VAT
REFUND
PROBLEMS
.
137
B.
GERMAN
TRADE
TAX
SYSTEM
.
138
C.
THIN
CAPITALISATION
RULES
.
140
D.
CROSS-BORDER
ASPECTS
OF
GERMAN
TAX
GROUPS
.
142
E.
DUAL
CONSOLIDATED
LOSS
RULES
.
143
F.
BOOKKEEPING
ABROAD
.
144
G.
TAXATION
OF
CROSS-BORDER
DIVIDENDS
.
144
H.
TAXATION
OF
ROYALTY
PAYMENTS
.
149
I.
ANTI-ABUSE
REGULATIONS
.
150
J.
HYBRID
ENTITIES
.
153
CHAPTER
8
TAX
PROBLEMS
OF
SPECIAL
INDUSTRIES/BUSINESS
SECTORS
A.
INVESTMENT
FUNDS
.
171
B.
REAL
ESTATE
SECTOR
.
173
C.
SHIPPING
INDUSTRY
.
183
D.
DISTRIBUTION
MODELS:
PRINCIPAL
STRUCTURES
.
187
E.
M&A/PRIVATE
EQUITY
-
CROSS-BORDER
REORGANISATIONS
.
190
F.
NON-PROFIT
ORGANISATIONS
.
193
G.
E-COMMERCE
.
195
H.
LEASING
.
198
XI
CHAPTER
9
HOLDING
COMPANIES
IN
GERMANY
A.
GENERAL
.
203
B.
ACQUISITION
.
204
C.
FINANCING
.
204
D.
COMPARISON
OF
CORPORATION
AND
PARTNERSHIP
AS
HOLDING
COMPANY
.
205
E.
VAT
-
ENTREPRENEUR
STATUS
.
206
F.
LIMITED
TAX
LIABILITY
.
207
G.
TAXATION
OF
PARTNERSHIPS
.
208
H.
PARTICIPATION
EXEMPTION
FOR
CORPORATIONS
.
209
I.
EXITTAXATION
.
212
J.
REORGANISATION
.
214
K.
CFC
REGULATIONS
.
223
CHAPTER
10
TRANSFER
PRICING
FROM
A
GERMAN
PERSPECTIVE
A.
INTRODUCTION
.
230
B.
GENERAL PROVISIONS
GOVERNING
PROFIT
ALLOCATION BETWEEN
RELATED
PARTIES
.
231
C.
GENERAL PRINCIPLES
FOR
THE
ALLOCATION
OF
INCOME
.
234
D.
BUSINESS
RESTRUCTURINGS:
RELOCATION
OF
FUNCTIONS
.
246
XII
TABLE
OF
CONTENTS
FOREWORD
TO
THE
THIRD
EDITION
.
V
AUTHORS
.VII
IMPORTANT
ABBREVIATIONS
.
XXV
CHAPTER
1
INTRODUCTION
A.
PURPOSE
OF
THIS
BOOK
.
1
B.
BENEFITS
FOR
READERS
.
2
C.
PECULIARITIES
OF
GERMAN
TAX
LAW
.
2
I.
HIGH
DEGREE
OF
CODIFICATION
.
2
II.
TAX
COURT
SYSTEM
AND
'
TAX
CLIMATE
'
IN
GERMANY
.
3
III.
EU
LAW
AND
ITS
INFLUENCE
.
5
IV.
GERMAN
FEDERAL
CONSTITUTIONAL
COURT
.
6
V.
TAX
TREATIES
AND
TREATY
OVERRIDES
.
7
VI.
TRADE
TAX
.
8
D.
GOOD
TO
KNOW
-
USEFUL
INFORMATION
AND
RECOMMENDATIONS
FOR
FOREIGN
INVESTORS
.
8
I.
RULING
PRACTICE/APA
PRACTICE
.
8
II.
VAT
FOR
FOREIGN
ENTREPRENEURS
-
PRACTICAL
ISSUES
.
10
1.
GENERAL
INFORMATION
.
10
2.
CONTACT
DETAILS
.
10
3.
APPLICATION
PROCESS
.
10
4.
TAX
REPRESENTATIVE
.
11
III.
COOPERATION
DUTIES
IN
INTERNATIONAL
TAX
CASES
.
12
IV.
TRANSFER
PRICING
DOCUMENTATION
REQUIREMENTS
.
13
V.
DISCLOSURE
DUTIES
FOR
INTERNATIONAL
PAYMENTS
.
14
VI.
ESTIMATION
OF
TAXABLE
INCOME
.
14
VII.
VOLUNTARY
DISCLOSURE
PROCEDURE
.
15
VIII.
GENERAL
RULES
FOR
KEEPING
BOOKS
AND
RECORDS
.
15
CHAPTER
2
OVERVIEW
OF
THE
GERMAN
TAX
SYSTEM
A.
TAX
SUBJECTS
-
TAX
LIABILITY
.
17
B.
TAXPAYER
.
18
C.
TAXABLE
INCOME
.
20
I.
DEPRECIATION
.
20
II.
THIN
CAPITALISATION
RULES
.
21
XIII
D.
CORPORATE
INCOME
TAX
.
22
I.
CORPORATE
INCOME
TAX
FOR
CORPORATIONS
.
22
II.
INCOME
TAX
FOR
PARTNERSHIPS
.
22
E.
TRADE
TAX
.
22
F.
FINANCIAL
STATEMENTS,
ACCOUNTING,
AND
REPORTING
.
23
G.
ELECTRONIC
TAX
BALANCE
SHEET
.
24
H.
GROUP
TAXATION
.
24
I.
TAX
LOSSES
.
25
J.
VALUE-ADDED
TAX
.
25
K.
REAL
ESTATE
TAX
.
28
L.
REAL
ESTATE
TRANSFER
TAX
.
28
I.
INDIRECT
TRANSFER
OF
REAL
ESTATE
PROPERTY
.
29
II.
TAX
EXEMPT
TRANSFERS
.
29
M.
CUSTOMS
AND
EXCISE
DUTIES
WHEN
IMPORTING
GOODS
TO
GERMANY
.
30
N.
TAX
INCENTIVES
FOR
ORGANISATION
OF
GENERAL
INTEREST
-
CHARITABLE
ORGANISA
TIONS
.
31
O.
EULAW
.
32
I.
INDIRECT
TAX
DIRECTIVES
.
32
II.
MERGER
DIRECTIVE
.
33
1.
THE
SUBSTANTIVE
SCOPE
OFTHE
REORGANISATION
TAX
ACT
WITH
RESPECT
TO
THE
MERGER
DIRECTIVE
.
34
2.
THE
PERSONAL
SCOPE
OF
THE
REORGANISATION
TAX
ACT
.
34
III.
PARENT-SUBSIDIARY
DIRECTIVE
.
34
1.
THE
PERSONAL
SCOPE
OFTHE
PARENT-SUBSIDIARY
DIRECTIVE
IMPLEMENT
ED
IN
GERMAN
TAX
LAW
.
35
2.
THE
SUBSTANTIVE
SCOPE
OF
THE
PARENT-SUBSIDIARY
DIRECTIVE
IMPLE
MENTED
IN
GERMAN
TAX
LAW
.
35
IV.
INTEREST
AND
ROYALTIES
DIRECTIVE
.
36
1.
THE
PERSONAL
SCOPE
OF
THE
INTEREST
AND
ROYALTIES
DIRECTIVE
AS
IM
PLEMENTED
IN
GERMAN
TAX
LAW
.
36
2.
THE
SUBSTANTIVE
SCOPE
OFTHE
INTEREST
AND
ROYALTIES
DIRECTIVE
AS
IMPLEMENTED
IN
GERMAN
TAX
LAW
.
36
P.
TAXTREATIES
.
37
I.
GENERAL
.
37
II.
SUBJECT
TO
TAX
CLAUSES
.
37
Q.
ANTI-TREATY/DIRECTIVE-SHOPPING
RULE
.
38
R.
CFC
REGULATIONS
.
38
S.
ASSESSMENT
PROCEDURE
.
40
T.
FILING
AND
PAYMENT
.
41
U.
OBJECTION
TO
TAX
ASSESSMENT
.
41
V.
STATUTE
OF
LIMITATIONS
.
42
XIV
W.
GERMAN
TAX
AUTHORITIES
.
42
X.
TAX
AUDITS
.
42
Y.
RULINGS
.
44
CHAPTER
3
INVESTMENT
THROUGH
GERMAN
CORPORATIONS
A.
ESTABLISHMENT
OF
A
CORPORATION
.
45
B.
FORMS
OF
CORPORATIONS
.
46
I.
STOCK
CORPORATION
.
46
II.
LIMITED
LIABILITY
COMPANY
.
46
III.
SOCIETAS
EUROPAEA
.
47
IV.
COMMERCIAL
REGISTER
.
47
C.
TAXATION
OF
CORPORATIONS
.
48
D.
TAXATION
OF
THE
SHAREHOLDER
.
50
E.
THIN
CAPITALISATION
RULES
.
50
I.
ESCAPE
CLAUSES
.
51
II.
EXEMPTION
FROM
ESCAPE
CLAUSES
.
51
III.
DEFINITIONS
.
52
IV.
INTEREST
EXPENSE
CARRY-FORWARD
.
52
V.
EBITDA
CARRY-FORWARD
.
52
F.
DIVIDEND
TAXATION
.
53
G.
CAPITAL
GAINS
.
53
H.
HELD
FOR
TRADING
SHARES
.
54
I.
CHANGE
IN
OWNERSHIP
RULE
.
54
I.
GENERAL
.
54
II.
CHANGE-IN-OWNERSHIP
RULE
SINCE
1
JANUARY
2008
.
55
III.
EXCEPTIONS
.
55
J.
TRADE
TAXABLE
INCOME
.
57
I.
ADD-BACKS
.
57
II.
DEDUCTIONS
.
58
K.
TAXGROUP
.
58
I.
GENERAL
.
58
II.
LEGAL
CONDITIONS
.
59
III.
ADVANTAGES
.
59
IV.
RISKS
.
60
V.
CONSOLIDATED
RETURN
-
TAX
GROUP
.
60
VI.
FUTURE
OF
GERMAN
FISCAL
UNITY
RULES
.
61
L.
TAX
ASSESSMENT
PERIOD
.
61
M.
ELECTRONIC
TAX
DECLARATION
.
62
XV
CHAPTER
4
INVESTMENTS
THROUGH
GERMAN
PARTNERSHIPS
A.
OVERVIEW
.
63
B.
AVAILABLE
CLASSES
OF
PARTNERSHIPS
.
64
I.
LEGAL
CLASSIFICATION
.
64
1.
GENERAL
.
64
2.
SHORT
EXPLANATIONS
.
64
II.
TAX
LAW
CLASSIFICATION
.
65
C.
GENERAL
TAXATION
PRINCIPLES
.
65
I.
DIFFERENT
CLASSES
OF
PARTNERSHIP
IN
GERMAN
TAX
LAW
.
65
1.
COMMERCIAL
PARTNERSHIPS
.
66
A)
CO-ENTREPRENEURSHIP
.
66
AA)
CO-ENTREPRENEURIAL
RISK
.
67
BB)
CO-ENTREPRENEURIAL
INITIATIVE
.
67
B)
COMMERCIAL
ACTIVITY/COMMERCIAL
INCOME
.
67
AA)
GENERAL
.
67
BB)
INTENTION
TO
EARN
PROFIT
.
68
CC)
COMMERCIAL
ACTIVITY
VERSUS
ASSET
ADMINISTRATION
ACTIVITY.
.
68
DD)
'
INFECTION
'
RULE
.
69
2.
DEEMED-COMMERCIAL
PARTNERSHIPS
.
70
3.
NON-COMMERCIAL
PARTNERSHIPS
.
70
II.
RELATIONSHIP
BETWEEN
PARTNERS
AND
'
THEIR
'
PARTNERSHIP
.
71
1.
SPECIAL
REMUNERATION
.
71
2.
SPECIAL
BUSINESS
ASSETS
.
72
III.
SPECIAL
ISSUES
.
73
1.
TRANSFER
OF
ASSETS
BETWEEN
PARTNERSHIPS
AND
PARTNERS
.
73
2.
SALE
OF
PARTNERSHIP
INTEREST
AND
WINDING-UP
.
74
3.
FICTITIOUS
'
SPLIT
OF
BUSINESS
'
.
75
4.
OPTION
TO
CORPORATE
TAXATION
.
76
A)
BASIC
PRINCIPLES
.
76
B)
FISCAL
UNITY
.
76
C)
IMPACT
ON
RELATIONSHIP
TO
EU
DIRECTIVES
.
77
D)
IMPACT
ON
REALTIONSHIP
TO
DOUBLE
TAXATION
AGREEMENTS
.
77
IV.
TAX
RATES/EARNINGS
RETENTION
.
77
D.
PROCEDURAL
ASPECTS
OF
INCOME
DETERMINATION
.
78
I.
GENERAL
.
78
II.
RESTRICTIONS
DUE
TO
§
15A
ESTG
REGARDINGLOSSES
.
79
III.
UNIFORM
DETERMINATION OF
PROFITS
.
79
E.
APPLICATION
OF
TAX
TREATIES
.
79
I.
COMMERCIAL
PARTNERSHIPS
.
79
1.
GENERAL
.
79
A)
ADMINISTRATIVE
CIRCULAR
-
TAX
TREATIES
AND
PARTNERSHIPS
.
79
B)
BASIC
PRINCIPLES
.
80
C)
DENIAL
OF
TREATY
ENTITLEMENT
AND
CONSEQUENCES
.
80
D)
TRIANGULAR
CASES
.
81
2.
SPECIAL
REMUNERATION
.
81
II.
DEEMED-COMMERCIAL
PARTNERSHIPS
.
82
XVI
III.
NON-COMMERCIAL
PARTNERSHIP
.
83
IV.
INBOUND-INVESTMENT
THROUGH
FOREIGN
PARTNERSHIPS
.
83
F.
INBOUND
TAX
PLANNING
WITH
PARTNERSHIPS
-
EXAMPLES
.
85
I.
USING
PARTNERSHIPS
TO
AVOID
THE
GERMAN
INTEREST
BARRIER
RULE
.
85
1.
STRUCTURE
CHART
.
85
2.
EXPLANATION
.
85
II.
OUTBOUND
INVESTMENTS
WITH
PARTNERSHIPS
.
87
1.
STRUCTURE
CHART
.
87
2.
EXPLANATION
.
87
III.
SIMPLIFICATION
OF
STRUCTURES
WITH
PARTNERSHIPS
.
89
1.
STRUCTURE
CHART
.
89
2.
EXPLANATION
.
89
IV.
STEP-UP
PLANNING
WITH
PARTNERSHIPS
.
90
1.
STRUCTURE
CHART
.
90
2.
EXPLANATION
.
90
V.
AVOIDING
RETT
WITH
PARTNERSHIPS
.
91
1.
STRUCTURE
CHART
.
91
2.
EXPLANATIONS
.
91
VI.
TAX
PLANNING
WITH
NON-EU/NON-TREATY
COUNTRIES
.
94
1.
STRUCTURE
CHART
.
94
2.
EXPLANATION
.
95
VII.
CREATION
OF
DIVISIONS
FOR
REORGANISATION
PURPOSES
.
96
1.
STRUCTURE
CHART
.
96
2.
EXPLANATION
.
96
VIII.
IMMEDIATE
LOSS
UTILISATION
THROUGH
PARTNERSHIPS
.
97
1.
STRUCTURE
CHART
.
97
2.
EXPLANATION
.
97
CHAPTERS
INVESTMENTS
THROUGH
GERMAN
PERMANENT
ESTABLISHMENTS
A.
GENERAL
.
99
I.
INTRODUCTION
.
99
1.
LEGAL
PERSPECTIVE
.
99
2.
ALLOCATION
OF
TAXATION
RIGHTS
BETWEEN
STATES
.
99
II.
WHAT
CONSTITUTES
A
PERMANENT
ESTABLISHMENT?
.
100
1.
NATIONAL
TAX
LAW
VS
OECD
MODEL
TAX
CONVENTION
.
100
2.
§12
AO
.
100
A)
PLACE
OF
BUSINESS
.
101
B)
'
FIXED
'
PLACE
.
101
C)
DURATION
.
102
D)
ENTITLEMENT
TO
USE
.
102
E)
PREPARATORY
OR
ANCILLARY
ACTIVITIES
.
102
F)
CONSTRUCTION
SITES
.
103
G)
SERVICES
.
104
III.
PERMANENT
REPRESENTATIVE
.
104
B.
TAXATION
RULES
.
105
XVII
C.
PROFIT
ALLOCATION
.
105
I.
BASIC
PROBLEMS
.
105
II.
PROFIT
DETERMINATION:
ELIGIBLE
METHODS
.
107
1.
DIRECTMETHOD
.
108
2.
INDIRECT
METHOD
.
108
III.
ALLOCATION
OF
ASSETS
AND
PROFITS
AND
OTHER
PROBLEMS
.
109
1.
ATTRIBUTION
OF
ASSETS
.
109
2.
ATTRIBUTION
OF
BUSINESS
EXPENDITURES
AND
BUSINESS
INCOME
.
110
3.
FUNDING
OF
THE
PERMANENT
ESTABLISHMENT
.
112
4.
TRANSFER
OF
ASSETS
.
113
5.
CURRENCY
EXCHANGE
RATE
PROBLEMS
.
114
6.
BOOKKEEPING
OF
THE
PERMANENT
ESTABLISHMENT
.
115
D.
INBOUND
TAX
PLANNING
WITH
PERMANENT
ESTABLISHMENTS
-
EXAMPLES
.
116
I.
AVOIDING
THE
INTEREST
BARRIER
RULE
WITH
A
PERMANENT
ESTABLISHMENT
.
116
1.
STRUCTURE
CHART
.
116
2.
EXPLANATION
.
116
II.
SIMPLIFICATION
OF
PERMANENT
ESTABLISHMENT
STRUCTURE
.
118
1.
STRUCTURE
CHART
.
118
2.
EXPLANATION
.
118
III.
LOSS
UTILISATION
WITH
PERMANENT
ESTABLISHMENT
STRUCTURE
.
120
1.
STRUCTURE
CHART
.
120
2.
EXPLANATION
.
120
IV.
TAX
CREDIT
PERMANENT
ESTABLISHMENT
STRUCTURE
FOR
FOREIGN
INVESTORS
.
122
1.
STRUCTURE
CHART
.
122
2.
EXPLANATION
.
122
CHAPTER
6
TAXATION
OF
DIRECT
BUSINESS
ACTIVITIES
A.
INTRODUCTION
.
124
B.
LIMITED
TAX
LIABILITY
.
124
I.
'
GENERAL
TAX
ASSESSMENT
PROCEDURE-INCOME
'
.
124
II.
'
WHT-INCOME
'
.
125
1.
DIVIDENDS
.
125
A)
INDIVIDUALS
.
125
B)
CORPORATIONS
.
125
C)
WHT
ISSUES
.
126
2.
INTEREST
INCOME
.
126
A)
GENERAL
.
126
B)
INDIVIDUALS
.
126
C)
CORPORATIONS
.
127
3.
SALARIES
.
127
4.
CONSTRUCTION
WORKS
.
127
5.
ARTISTS,
ATHLETES
AND
JOURNALISTS
.
128
A)
GENERAL
.
128
B)
WHT
COLLECTION
.
129
C)
ECJ
CASE
LAW
.
130
6.
EXPLOITATION
OF
INTELLECTUAL
PROPERTY
RIGHTS
.
133
XVIII
III.
SPECIAL
REFUND
PROCEDURE
FOR
WHT
.
134
1.
DIVIDENDS
.
134
2.
INCOME
UNDER
§
50A(L)
NO.
1
ESTG
.
135
CHAPTER
7
SPECIAL
TAX
PROBLEMS
OF
CROSS-BORDER
INVESTMENTS
A.
VAT
REFUND
PROBLEMS
.
137
B.
GERMAN TRADE
TAX
SYSTEM
.
138
I.
CALCULATION
OF
TRADE
TAX
.
138
II.
TAXABLE
INCOME
.
138
1.
ADD-BACKS
.
139
2.
DEDUCTIONS
.
139
C.
THIN
CAPITALISATION
RULES
.
140
I.
EXEMPTION
FROM
ESCAPE
CLAUSES
.
140
II.
DEFINITIONS
.
141
III.
INTEREST
EXPENSE
CARRY-FORWARD
.
141
IV.
EBITDA
CARRY-FORWARD
.
142
D.
CROSS-BORDER
ASPECTS
OF
GERMAN
TAX
GROUPS
.
142
E.
DUAL
CONSOLIDATED
LOSS
RULES
.
143
F.
BOOKKEEPING
ABROAD
.
144
G.
TAXATION
OF
CROSS-BORDER
DIVIDENDS
.
144
I.
GENERAL
.
144
II.
PORTFOLIO
DIVIDENDS
.
145
III.
HIDDEN
PROFIT
DISTRIBUTIONS
.
146
IV.
HIDDEN
EQUITY
CONTRIBUTION
.
148
H.
TAXATION
OF
ROYALTY
PAYMENTS
.
149
I.
ANTI-ABUSE
REGULATIONS
.
150
I.
BACKGROUND
.
150
II.
NEW
PROVISION:
§
50D(3)
ESTG
.
150
III.
PERSONAL
SCOPE
OF
APPLICATION
.
151
IV.
SUBSTANTIVE
SCOPE
OF
APPLICATION
.
151
V.
POSSIBILITY
OF
COUNTER-EVIDENCE
.
152
VI.
MISCELLANEOUS
.
152
J.
HYBRID
ENTITIES
.
153
I.
DIVIDENDS
.
153
1.
THE
PERSONAL
SCOPE
OF
THE
PARENT-SUBSIDIARY
DIRECTIVE
IMPLEMENT
ED
IN
GERMAN
TAX
LAW
.
153
2.
THE
SUBSTANTIVE
SCOPE
OFTHE
PARENT-SUBSIDIARY
DIRECTIVE
IMPLEMENTED
IN
GERMAN
TAX
LAW
.
154
3.
IMPLEMENTATION
OF
ART.4(1)(A)
PARENT-SUBSIDIARY
DIRECTIVE
.
154
4.
APPLICATION
OF
§
43B
ESTG
WITH
RESPECT
TO
HYBRID
ENTITIES
.
155
II.
ROYALTY
PAYMENTS
.
156
1.
THE
PERSONAL
SCOPE
OFTHE
INTEREST
AND
ROYALTIES
DIRECTIVE
AS
IMPLEMENTED
IN
GERMAN
TAX
LAW
.
156
XIX
2.
THE
SUBSTANTIVE
SCOPE
OF
THE
INTEREST
AND
ROYALTIES
DIRECTIVE
AS
IMPLEMENTED
IN
GERMAN
TAX
LAW
.
157
3.
APPLICATION
OF
§
50G
ESTG
WITH
RESPECT
TO
HYBRID
ENTITIES
.
157
III.
REORGANISATIONS
.
158
1.
THE
SUBSTANTIVE
SCOPE
OFTHE
REORGANISATION
TAX
ACT
WITH
RESPECT
TO
THE
MERGER
DIRECTIVE
.
159
2.
THE
PERSONAL
SCOPE
OF
THE
REORGANISATION
TAX
ACT
.
159
3.
IMPLEMENTATION
OF
ART.
4(2)
MERGER
DIRECTIVE
.
159
4.
IMPLEMENTATION
OF
ART.
8(3)
MERGER
DIRECTIVE
.
160
5.
IMPLEMENTATION
OFART.
10A
MERGER
DIRECTIVE
2005/19/EC
.
160
IV.
IMPLEMENTATION
OFTHE
OECD
APPROACH
TO
HYBRID
ENTITIES
IN
GERMAN
LEGISLATION
AND
TAX
TREATIES
.
161
1.
ISSUES
ARISING
FROM
THE
APPLICATION
OF
DIFFERENT
TREATY
ARTICLES
TO
INCOME
EARNED
BY
A
HYBRID
ENTITY
.
166
2.
SPECIAL
REMUNERATIONS
.
166
V.
MOST
RECENT
CHANGES
FROM
2021
ONWARDS
.
168
CHAPTER
8
TAX
PROBLEMS
OF
SPECIAL
INDUSTRIES/BUSINESS
SECTORS
A.
INVESTMENT
FUNDS
.
171
I.
CLOSED-END
FUNDS
(KG
STRUCTURES)
.
171
II.
OPEN-ENDED
FUNDS
.
172
1.
MUTUAL
FUNDS
.
172
2.
SPECIAL
FUNDS
.
173
B.
REAL
ESTATE
SECTOR
.
173
I.
VAT.
174
II.
REAL
ESTATE
TRANSFER
TAX
.
175
1.
RETT-BLOCKER
STRUCTURE
FOR
ACQUISITION
OF
SHARES
.
175
A)
STRUCTURE
CHART
.
175
B)
EXPLANATION
.
176
2.
STRUCTURE
FOR
ACQUISITION
OF
PARTNERSHIP
INTEREST
.
177
A)
STRUCTURE
CHART
.
177
B)
EXPLANATION
.
178
3.
INTRA-GROUP
REORGANISATIONS
.
178
A)
STRUCTURE
CHART
.
178
B)
EXPLANATION
.
179
4.
HIVE-DOWN
RESTRUCTURING
USING
A
RETT-BLOCKER
KG
.
180
A)
STRUCTURE
CHART
.
180
B)
EXPLANATION
.
181
5.
TAX
EFFICIENT
INTERPOSITION
OF
GMBH
.
181
A)
STRUCTURE
CHART
.
181
B)
EXPLANATION
.
182
C.
SHIPPING
INDUSTRY
.
183
I.
GERMAN
TONNAGE
TAX
SYSTEM
.
183
II.
ART.
8
OECD
MTC
AND
THE
GERMAN
APPROACH
.
184
1.
GENERAL
.
184
XX
2.
REFLECTION
OF
ART.
8
IN
GERMAN
TAX
TREATIES
.
184
A)
ART.8(L)
.
184
B)
ART.
8(2)
.
185
C)
ART.
8(3)
.
185
D)
ART.
8(4)
.
185
3.
MAJOR
PROBLEMS
IN
PRACTICE
.
185
A)
PREPARATORY
AND
ANCILLARY
ACTIVITIES
.
185
B)
CONTAINERS
.
186
C)
BAREBOAT
CHARTER
.
186
D)
INTERNATIONAL
TRAFFIC
.
187
E)
INVESTMENT
INCOME
.
187
D.
DISTRIBUTION
MODELS:
PRINCIPAL
STRUCTURES
.
187
E.
M&A/PRIVATE
EQUITY
-
CROSS-BORDER
REORGANISATIONS
.
190
F.
NON-PROFIT
ORGANISATIONS
.
193
I.
GENERAL
.
193
II.
TAX-PRIVILEGED
PURPOSES
.
193
1.
PUBLIC-BENEFIT
PURPOSES
.
193
2.
CHARITABLE
PURPOSES
.
194
3.
RELIGIOUS
PURPOSES
.
194
III.
GENERAL
REQUIREMENTS
FOR
TAX
PRIVILEGE
.
195
G.
E-COMMERCE
.
195
I.
DIFFICULTIES
WITH
TAXING
E-COMMERCE
.
195
II.
MAIN
PROBLEMS
OF
DIRECT
TAXATION
.
196
III.
VALUE-ADDED
TAX
.
197
H.
LEASING
.
198
I.
GENERAL
ADVANTAGES
OFLEASING
.
198
II
.
TAX
BALANCE
SHEET
ISSUES
.
198
II
I.
RELEVANT
CATEGORY
OF
INCOME
.
200
CHAPTER
9
HOLDING
COMPANIES
IN
GERMANY
A.
GENERAL
.
203
B.
ACQUISITION
.
204
C.
FINANCING
.
204
D.
COMPARISON
OF
CORPORATION
AND
PARTNERSHIP
AS
HOLDING
COMPANY
.
205
E.
VAT
-
ENTREPRENEUR
STATUS
.
206
F.
LIMITED
TAX
LIABILITY
.
207
G.
TAXATION
OF
PARTNERSHIPS
.
208
H.
PARTICIPATION
EXEMPTION
FOR
CORPORATIONS
.
209
I.
DIVIDEND
INCOME
.
209
II
.
CAPITAL
GAINS
.
210
II
I.
HELD-FOR-TRADING
SHARES
.
210
IV
.
WITHHOLDING
TAXES
.
211
XXI
I.
EXIT
TAXATION
.
212
I.
GENERAL
.
212
II.
EXCEPTION
AND
EU
LAW
.
213
J.
REORGANISATION
.
214
I.
GENERAL
PRINCIPLES
.
214
II.
QUALIFYING
ASSETS
.
215
III.
TYPES
OF
REORGANISATION
.
215
IV.
CONVERSION
FROM
CORPORATION
TO
PARTNERSHIP
.
216
V.
MERGER
OF
A
CORPORATION
INTO
A
GERMAN
PARTNERSHIP
.
217
VI.
MERGER
OF
CORPORATIONS
.
217
VII.
DEMERGER
OF
CORPORATIONS
.
218
VIII.
HIVE-DOWN
INTO
CORPORATIONS
.
219
IX.
SHARE-FOR-SHARE
EXCHANGES
.
220
X.
CONVERSION
OF
PARTNERSHIP
INTO
CORPORATION
.
222
XI.
HIVE-DOWN
OF
SINGLE
ASSETS
INTO
PARTNERSHIP
.
222
K.
CFC
REGULATIONS
.
223
I.
LOWTAXATION
.
225
II.
DE
MINIMIS
THRESHOLD
.
226
III.
LOWER
TIER
INTERMEDIARY
COMPANIES
.
226
IV.
ESCAPE
RULE
FOR
EU
COMPANIES
.
227
V.
INCOME
AMOUNT
COMPUTATION
.
228
VI.
TAXCREDIT
.
229
VII.
CAPITAL
GAINS
.
229
CHAPTER
10
TRANSFER
PRICING
FROM
A
GERMAN
PERSPECTIVE
A.
INTRODUCTION
.
230
B.
GENERAL
PROVISIONS
GOVERNING
PROFIT
ALLOCATION
BETWEEN
RELATED
PARTIES
.
231
I.
NATIONAL
GERMAN
TAX
LAW
.
231
1.
PROFIT
ALLOCATION
UNDER
DOUBLE
TAXATION
AGREEMENTS
.
232
2.
HIDDEN
PROFIT
DISTRIBUTION
AND
HIDDEN
CAPITAL
CONTRIBUTION
.
233
3.
§1
ASTG
.
233
II.
BUSINESS
RELATIONS
TO
AFFILIATED
PERSONS
.
234
C.
GENERAL
PRINCIPLES
FOR
THE
ALLOCATION
OF
INCOME
.
234
I.
THE
ARM
'
S
LENGTH
TEST
.
234
II.
STANDARD
TRANSFER
PRICING
METHODS
.
236
1.
COMPARABLE
UNCONTROLLED
PRICE
METHOD
.
236
2.
RESALE
PRICE
METHOD
.
236
3.
COST
PLUS
METHOD
.
236
4.
GENERAL:
SET-OFF
OF
BENEFITS
.
237
5.
APPLICATION
OF
THE
METHODS
.
237
III.
GOODS
AND
SERVICES
.
238
1.
SUPPLY
OF
GOODS
AND
SERVICES
.
238
A)
EXPLANATIONS
.
238
B)
EXAMPLES
.
239
2.
COMMERCIAL
SERVICES
.
240
XXII
3.
ADVERTISING
COSTS
.
240
4.
MARKET
PENETRATION
COSTS
.
240
5.
START-UP
COSTS
.
241
IV.
INTEREST
AND
SIMILAR
REMUNERATION
.
241
1.
GENERAL
.
241
2.
RELEVANT
INTEREST
RATES
.
241
3.
GUARANTEES
AND
SIMILAR
OBLIGATIONS
.
242
4.
TRANSFER
OF
INTANGIBLE
ASSETS
.
242
5.
ADMINISTRATIVE
SERVICES
WITHIN
THE
GROUP
.
243
A)
GENERAL
.
243
B)
REQUIREMENTS
FOR
INTER-COMPANY
CHARGES
.
243
C)
EXAMPLES
.
244
D)
ARM
'
S
LENGTH
PRICES
.
244
6.
NEW
JUDGMENTS
ON
INTER-COMPANY
FINANCING
.
245
A)
JUDGMENT
OF
18
MAY
2021
(I
R
4/17)
.
245
B)
JUDGMENT
OF
18
MAY
2021
(I
R
62/17)
.
245
C)
JUDGMENT
OF
9
JUNE
2021
(I
R
32/17)
.
246
D.
BUSINESS
RESTRUCTURINGS:
RELOCATION
OF
FUNCTIONS
.
246
I.
INTRODUCTION
.
246
II.
OECD
TRANSFER
PRICING
GUIDELINES
.
247
III.
GERMAN
APPROACH
TO
BUSINESS
RESTRUCTURINGS
.
248
1.
GENERAL
.
248
2.
SPECIAL
ASPECTS
OF
SPECIFIC
RELOCATIONS
OF
FUNCTIONS
.
248
A)
RELOCATION
OFPRODUCTION
.
248
AA)
RELOCATION
OF
PRODUCTION
TO
A
MANUFACTURER
.
248
BB)
REORGANISATION
FROM
PRODUCTION
TO
TOLL
MANUFACTURER
.
249
CC)
RELOCATION
OF
A
PRODUCTION
TO
A
TOLL
MANUFACTURER
.
249
DD)
REORGANISATION
FROM
TOLL
MANUFACTURER
TO
MANUFACTURER
.
.
250
B)
RELOCATION
OF
DISTRIBUTION
.
250
AA)
RELOCATION
OF
DISTRIBUTION
TO
A
DISTRIBUTOR
(OR
AUTHORISED
DEALER)
.
250
BB)
REORGANISATION
OF
A
FULL
DISTRIBUTOR
TO
COMMISSION
AGENT
OR
AGENT
.
250
CC)
RELOCATION
OF
RESEARCH
AND
DEVELOPMENT
.
251
DD)
RELOCATION
OF
SERVICES
.
252
EE)
RELOCATION
OF
PURCHASING
DEPARTMENT
.
252
XXIII |
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| author | Haase, Florian 1974- Steierberg, Daniela |
| author_GND | (DE-588)133225135 (DE-588)1028511094 |
| author_facet | Haase, Florian 1974- Steierberg, Daniela |
| author_role | aut aut |
| author_sort | Haase, Florian 1974- |
| author_variant | f h fh d s ds |
| building | Verbundindex |
| bvnumber | BV048976481 |
| classification_rvk | PP 3020 |
| ctrlnum | (OCoLC)1422415920 (DE-599)DNB1281748765 |
| discipline | Rechtswissenschaft |
| edition | Third edition |
| format | Book |
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| geographic_facet | Deutschland |
| id | DE-604.BV048976481 |
| illustrated | Illustrated |
| index_date | 2024-07-03T22:04:10Z |
| indexdate | 2024-08-02T00:06:17Z |
| institution | BVB |
| isbn | 9783406793752 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-034240021 |
| oclc_num | 1422415920 |
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| physical | XXV, 251 Seiten Illustrationen, Diagramme |
| publishDate | 2024 |
| publishDateSearch | 2024 |
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| publisher | C.H. Beck |
| record_format | marc |
| series2 | German law accessible |
| spelling | Haase, Florian 1974- Verfasser (DE-588)133225135 aut Tax law in Germany by Florian Haase, Daniela Steierberg Third edition München C.H. Beck 2024 XXV, 251 Seiten Illustrationen, Diagramme txt rdacontent n rdamedia nc rdacarrier German law accessible Steuerrecht (DE-588)4116614-0 gnd rswk-swf Deutschland (DE-588)4011882-4 gnd rswk-swf Deutschland (DE-588)4011882-4 g Steuerrecht (DE-588)4116614-0 s DE-604 Steierberg, Daniela Verfasser (DE-588)1028511094 aut DNB Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=034240021&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Haase, Florian 1974- Steierberg, Daniela Tax law in Germany Steuerrecht (DE-588)4116614-0 gnd |
| subject_GND | (DE-588)4116614-0 (DE-588)4011882-4 |
| title | Tax law in Germany |
| title_auth | Tax law in Germany |
| title_exact_search | Tax law in Germany |
| title_exact_search_txtP | Tax law in Germany |
| title_full | Tax law in Germany by Florian Haase, Daniela Steierberg |
| title_fullStr | Tax law in Germany by Florian Haase, Daniela Steierberg |
| title_full_unstemmed | Tax law in Germany by Florian Haase, Daniela Steierberg |
| title_short | Tax law in Germany |
| title_sort | tax law in germany |
| topic | Steuerrecht (DE-588)4116614-0 gnd |
| topic_facet | Steuerrecht Deutschland |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=034240021&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
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