Global

Details

  • Service: Tax, Mergers & Acquisitions, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 5/17/2013

Germany - Taxation of portfolio dividends; gain, loss on mergers 

May 17: Recent developments concerning tax in Germany include a new law on the taxation of portfolio dividends and a proposal to amend the tax procedure rules.
  • A new law provides that portfolio dividends (for shareholdings of less than 10%, measured as of the beginning of the calendar year) received by corporate entities are generally subject to corporate income tax, and are no longer exempt from tax under Germany’s participation exemption regime (effective 95% exemption).
  • A proposed reduction of 10-year retention periods for accounting and tax records has been considered by the Bundestag.
  • A court decision affirmed the ability of companies to establish tax-deductible accruals for future tax and audit expenses.
  • A court decision found with respect to upstream mergers, merger-related gain or loss— when the inside basis of the transferring entity’s assets differ from the outside basis of the transferring entity’s shares—must be recognized also in mergers, demergers, or spin- offs when the transferee did not have an ownership interest in the transferring entity prior to the reorganization. Thus, the transaction costs are not tax deductible.

Read a May 2013 report [PDF 66 KB] prepared by the German Desk of KPMG LLP: International Tax Team (ITT): Germany




©2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now

Contact us