The Federal Ministry of Finance (BMF) in late March 2017, published a draft bill that would amend the regulation governing the issuance of binding rulings. The proposal would aim to clarify the rules when a binding ruling affects several taxpayers—for example, a tax group or in instances of a uniform assessment of the profit regarding the partners of a partnership.
Under current regulations, taxpayers can seek a binding ruling from the competent tax authorities for as yet unrealized matters. The tax authorities are bound by the ruling when a legal assessment of the actually realized matter is required. Binding rulings are subject to a user fee.
The BMF was authorized to issue rules concerning when an identical binding ruling may be issued uniformly to several parties. The BMF has now used its authorization by publishing the ministerial draft bill. According to the draft bill, binding rulings are to be requested jointly by all requesting taxpayers and issued in an identical manner for all taxpayers involved when:
The ministerial draft bill only requires approval by the Bundesrat to be effective.
Read a May 2017 report [PDF 322 KB] prepared by the KPMG member firm in Germany
Other topics discussed in this KPMG report concern:
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