Germany: Bundesrat opinion on tax rules; loss utilization, treaty-override developments

Germany: Bundesrat opinion on tax rules

The KPMG member firm in Germany has prepared a report that summarizes the following recent tax developments:

Related content

  • The Bundesrat issued its opinion concerning measures for the implementation of EU administrative assistance directive and to address base erosion and profit shifting (BEPS). The opinion concerns a new rule to prevent double deductions of special business expenses in the event of transactions with a foreign nexus; new rules regarding the non-resident tax liability for gains on the sale of shareholdings in real estate corporations; the trade tax treatment of the imputed income amount under the CFC rules; the trade tax treatment of non-portfolio dividends of a controlled company in a tax group; the interpretation of the tax treaty principle of dealing at arm's length; and a deemed dividend distribution in the event of cross-border mergers. The Bundesrat did not provide an opinion on other measures including country-by-country reporting.
  • The government published a draft bill relating to loss utilization for tax purposes.
  • The federal tax court (BFH) decided that the treaty-override provisions apply in instances when an income tax treaty entered into force and was effective at a time subsequent to the tax rule. 
  • A tax court case from Lower Munster concerns whether a loss carryback is possible even if there is a detrimental change in ownership. 
  • A decision of the tax court of Lower Cologne concludes that payments in the context of a computer-based travel reservation system are not subject to trade tax add-backs.

 

Read a 2016 report [PDF 385 KB] prepared by the KPMG member firm in Germany: German Tax Monthly

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform