German registered IP

German registered IP: Planned adjustment to German sourcing rules

For the past two years, MNEs owning IP registered in Germany have been facing uncertainty with regard to the taxation of payments for the licensing or sale of such IP (so-called „Registerfälle“). This was due to a “discovery” by tax experts that the mere entry of IP into a German book or register could result […]
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Umsatzsteuer Umsatzsteuerbefreiung, Datenschutzstrafrecht, Rollover relief, Forschungszulage, Familienprivileg, Related Party Transactions, Coronavirus, Gesellschaftsregister, Freiberufler, Verlust, Ausscheiden, CbCR, Revised Administrative Guidance, Transfer Pricing Documentation, German Administrative Guidance, Lizenzierung von IP, IP, Grunderwerbsteuerreform, Share Deals, Kaufpreisaufteilung

Taxation of German registered IP

[Note: This post was updated on 29 June 2022] 2020 was eventful for MNEs with IP (e.g. patents, trademarks, etc.) registered in Germany due to the uncertainty surrounding the treatment of such IP under German tax law. A new decree of 11 February 2021 provides for simplifications. Flashback At the beginning of 2020, German tax […]
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ESG and Tax in the context of PE transactions

Recent public discussions emphasise the importance of tax as a criterion when considering environmental, social and governance (ESG) factors in investment and management decisions. Policymakers in and outside Europe already use tax policy and tax transparency regulations to achieve environmental policy and sustainability goals. In the context of Private Equity, a company’s approach to tax […]
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Pension fund

Tax Court of Munich on Withholding Tax Regime for Portfolio Dividends

In a recently published judgment of 6 December 2021, the Tax Court of Munich decided that the final German withholding tax (WHT) on German dividends to a Canadian pension fund does not violate the free movement of capital under Article 63 TFEU as pension provisions were not formed at the fund’s level. Relevant German legislation […]
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NPO

Cross-border transfer of funds to foreign NPOs

In our new blog series, we are looking at how foreign and internationally active non-profit organizations (NPOs) can benefit from the tax privileges NPOs in Germany have. This is part three and deals with cross-border fund transfers between NPOs. German charity law permits the cross-border transfer of funds between non-profit organizations (NPOs) for charitable purposes. […]
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withhold tax

No withholding tax deduction for software developed abroad in the future? – New circular from the Federal Ministry of Finance expected

German clients have to deduct withholding tax from their payments to foreign software developers German companies that conclude contracts with software developers abroad may be subject to a tax deduction under Sec. 50a(1) no. 3 German Income Tax Act. The tax must be collected from persons subject to limited tax liability (individual developers or companies […]
Unternehmenskauf

VAT deduction right of PropCos located abroad owning/exploiting German real estate – VAT changes

In its decision C-931/19 (“Titanium”), the Court of Justice of the European Union (“CJEU”) ruled that a foreign company should not be considered as having a fixed establishment for VAT purposes („FE“) in a Member State if its activity in that country is limited to the ownership and the exploitation of real estate without having […]
Coronavirus, Vorstandsvergütung, Insurance Premium Tax, German Administrative Guidance, Umlaufverfahren

New Administrative Guidance on German Insurance Premium Taxes

Multinational groups often take out international insurance policies to provide group-wide cover against their worldwide risk exposure. Normally, a master policy is taken out by the parent, supplemented by local policies for the local subsidiaries. These companies should therefore be aware of an amendment to the German Insurance Tax Act (VersStG) passed on December 10, […]
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