Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 8/14/2012

Germany - Claims for withholding tax refunds by investment funds 

August 14: The German Ministry of Finance in July 2012 issued guidance stating that the federal central tax office (Bundeszentralamt für Steuern) is not the “competent” office to consider withholding tax refund claims filed pursuant to judgments of the Court of Justice for the European Union (CJEU) in the Aberdeen and Santander cases.

Instead, the Ministry of Finance guidance follows decisions of the German federal tax court (Decisions IR 25/10 and 30/10, (11 January 2012)) in stating that a local tax office is competent; however, the guidance does indicate which local tax office.


The CJEU decisions in Aberdeen and Santander generally open possibilities for investment funds to seek refunds of withholding tax suffered on EU-sourced dividend payments.

KPMG observation

The failure to file withholding tax refund claims with the appropriate office can pose significant risks for investment funds as well as for investors, particularly with regard to German investments


Tax professionals with KPMG in Luxembourg have stated that prudent taxpayers would consider filing withholding tax refund claims in Germany with tax offices at all possible levels.


Read an August 2012 report [PDF 51 KB] prepared by the KPMG member firm in Luxembourg: Aberdeen Alert: Update on Germany




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