Arnold & Porter
Our Advisory explores the potential impact of the German government's draft amendment to the real estate transfer tax law.
Germany has introduced measures to limit the deductibility of royalties paid by German resident taxpayers to related parties in certain circumstances.
According to market sources, the German Ministry of Finance is going to issue a draft tax bill covering new rules on the tax treatment of so-called cum/cum transactions shortly before Christmas.
Squire Patton Boggs
Local tax offices administer the income tax to be paid by individuals, corporate income tax, as well as value added tax (VAT) and real estate transfer tax.
The development, transfer, and licensing of intangibles are part
and parcel of cross-border transactions among related parties. The
allocation of costs and revenues, risks and chances, has a
fundamental impact on the tax liability of multinational companies.
In recent years, the German government and its Finance Ministry have tightened the legislation relating to transfer pricing, seeking not only to offset reductions in the tax rate but also to close the loopholes said to be eroding the German tax base.
Although many legal aspects have to be observed within the course of the sale of distressed loans, there are no legal obstacles in Germany which would bar such sales.
German Tax Laws
As in the U.K., the United States, Australia, France, and several other countries, Germany has now enacted (for the first time) legislation which requires companies to document their transfer pricing arrangements.
German tax laws
McDermott Will & Emery
Today, about 30 countries have requirements on the legal documentation of transfer pricing, which have, in some countries, existed for many years. Germany first adopted legal provisions in 2003. The new legal provisions were necessitatedby a decision made by the German supreme tax court in 2001.
Issues relating to German Tax & Legal News
The Supreme Tax Court has held that a loan from a domestic shareholder to a domestic subsidiary to fund a foreign PE is not a foreign transaction open to income adjustment under the transfer pricing rules.
The cost-plus method is one of the three transfer pricing methods accepted by the German tax authorities. (The other two are the comparable uncontrolled price method and the resale price method.)
On 1 October 2003, the European Commission published its draft block exemption Regulation on the application of Article 81(3) EC Treaty to technology transfer agreements1 ("Draft TTBER").
German Tax and Legal News from PWC
The European Commission has proposed a Code of Conduct for all procedures under the Arbitration Convention with the object of avoiding double taxation on intra-community trade.