• Service: Tax, Mergers & Acquisitions, Global Transfer Pricing Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/1/2013

Germany - New tax law provisions affecting corporate taxation, VAT 

July 1:  The legislative process for new tax law in Germany has been completed with the publication of the law in the federal law gazette on 29 June 2013.

Among the measures contained in the newly enacted law (known in English as the “Administrative Assistance Implementing Act”) are provisions concerning:

  • Extension of the correspondent taxation to the dividend taxation regime
  • Transfer pricing rule changes
  • Real estate transfer tax (RETT) blocker structures
  • Extension of the scope of the group exemption provision for RETT purposes
  • Expansion of the limits on offsetting losses related to reorganizations
  • Application of treaty provisions with respect to small business remunerations
  • EU administrative assistance law
  • Value added tax (VAT) on place of supply of other services
  • VAT with respect to the concept of business established abroad
  • VAT invoicing rules
  • CFC motive test provisions

Read a July 2013 report [PDF 1.94 MB] prepared by the KPMG member firm in Germany: German Tax Monthly (July 2013)

The KPMG report also discusses:

  • The signing of a United States-German FATCA agreement
  • A proposal of an extensive automatic exchange of information by the European Commission
  • Several judgments of the German Federal Tax Court

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