• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/8/2013

Germany - Profit-loss transfer agreements; dividends from portfolio investments 

March 8:   Newly enacted laws in Germany include measures that:
  • Amend the rules with respect to German tax groups (Organschaft) and require that profit-loss transfer agreements must include a provision on the absorption of losses if the controlled company is a GmbH
  • Provide for retroactive refunds of withholding tax with respect to dividends from portfolio investments, and further provide a tax exemption for dividends unless there is a direct shareholding ceiling of less than 10% of share capital

Both laws afford opportunities for taxpayers to take actions or seek refunds.

Other pending legislation could result in significant changes to the taxation of U.S. multinational entities’ investments in Germany.

Read a March 2013 report [PDF 59 KB] prepared by KPMG LLP’s International Tax Team (Germany).

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