Geoblocking, Geoblocking-Verordnung

Follow up: Tax Authorities’ About-turn: No Withholding Tax Obligation on Fees for Online Advertising

No additional tax burdens for domestic advertisers

The Bavarian finance minister, Albert Füracker, from the state’s Ministry of Finance and Home Affairs stated: „At Bavaria’s instigation, it has been possible to reach clarification on a national federal level. It is now finally clear that domestic companies do not have to withhold tax on online advertising.“ One of the justifications for this is […]
Geoblocking, Geoblocking-Verordnung

Some German Tax Auditors Apply Withholding Tax on Fees for Online Advertising

A recent tax audit trend in Germany has the potential to significantly impact the tax position of both German companies which use online advertising and nonresident companies offering online advertising services in Germany.

Alarming audit trend in Germany German tax auditors have recently started to treat payments made by German companies to nonresidents offering online advertising services as royalties. In the auditors’ view, cross-border payments are made for the use of undisclosed know-how in the form of advertising algorithms. Although the auditors justify this practice by the application […]
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Entstrickung

New Taxation for Nonresidents Selling Real Estate

Changes in German tax law affect foreign-to-foreign transactions – significant impact on nonresidents

The German real estate market remains highly attractive to foreign investors. An increasing number are structuring their acquisition of shares in foreign companies that own real estate in Germany, sometimes through interposed companies. A share deal offers several advantages for nonresidents selling real estate. For instance, there are some opportunities to avoid the German real estate […]

New Mandatory Reporting of Cross-Border Tax Arrangements

New Reporting Obligation for Taxpayers and Intermediaries – Draft of German Ministry of Finance Expected

As of 25 May 2018 the EU Council has published directives amending Directive 2011/16/EU regarding the automatic exchange of information. The amendment refers to the introduction of a new reporting obligation regarding cross-border tax arrangements. The member-states are to enact laws to this effect by 31 December 2019 resulting in a reporting obligation from 1 […]
Gesellschaftsrecht, Genossenschaftsrecht

New taxation of foreign investments in German real estate

Changes in German tax law expected - significant impact on foreigners investing in German real estate

The German real estate market is still buoyant, attracting a significant number of foreign investors. Recently, it has been possible to observe realizing profits and streamlining portfolios. More and more foreign investors are structuring the acquisition of shares in foreign companies owning German real estate (share deal), sometimes via interposed German companies, rather than by […]
Europa EuGH EU-Komission

Taxation of the Digital Economy in the EU

How the EU intends to reform the taxation of digital activities in its single market

The taxation of the digital economy is part of the European Commission’s fair taxation agenda. From what we hear, the European Commission plans to tax large digital companies‘ revenues based on where their users are located. As a temporary measure, revenues from digital transactions are to be taxed at a common rate of between 1% […]