"The dithering of the Federal Minister of Finance is incomprehensible to me."
Ulrich Meißner, tax expert of the VDMA (German Engineering Federation), explained the positions and demands of the mechanical and plant engineering industry with regard to tax research promotion in a public hearing of the Finance Committee of the German Bundestag. In a short conversation with the VDMA capital office, he describes his impressions.
country report
Annual Tax Act 2018: Amendments in sec 8c of the German Corporate Income Tax Act
Section 8c of the German Corporate Income Tax Act (CITA) was amanded by the Annual Tax Act 2018. The reasons of the amandments are rulings of the European Court of Justice and the Federal Constitutional Court in 2017. As a result, there will be changes for the proportional forfeiture of losses in accordance with sec. 8c para. 1 sent. 1 CITA (old version) as well as for the restructuring clause in sec. 8c para 1a CITA.
Tax exemption for the job ticket
The tax-free job ticket has been reintroduced since January 1, 2019. This is intended to make the job ticket more attractive again for companies and employees.
Study published by the Greens/EFA Group in the European Parliament on the effective taxation of European companies shows serious weaknesses
On January 22, 2019, the Greens/EFA Group in the European Parliament published a specially commissioned study to show that companies in the EU are effectively far less taxed than the individual tax laws nominally provide for. In many respects, however, this study has serious shortcomings in terms of content and thus leads to incorrect results.
DTT Overview
Overview of double taxation treaties and exemption from income tax for stays abroad
News on tax incentives for research and development
For many years, the VDMA has been committed to tax incentives for research and development, which should be introduced as a supplement to direct subsidies.
Suspension of execution for interest payments pursuant to sections 233, 238 (1) of the German Tax Code beginning from interest period 2012.
In June 2018, the Federal Ministry of Finance (BMF) published a new decree dated June 14, 2018 concerning the granting of a suspension of the execution of interest pursuant to sections 233 and 238 (1) AO for interest periods beginning 2015 onwards. This scope is now extended to interest periods beginning 2012 by the new decree of the BMF dated December 14, 2018.
Annual Tax Act 2018: Entry into force of the provisions for the tax exemption of restructuring profits (sec. 3a Income Tax Act, sec. 7b Trade Tax Act)
In 2017, the basis for the tax exemption of restructuring profits was already created within German tax legislation(sec. 3a Income Tax Act and sec. 7b Trade Tax Act). However, the entry into force has so far been subject to reservation for reasons of state aid law. In the course of the Annual Tax Act, the regulations are now finally coming into force.
Manuela Binzer
Manuela Binzer
website taxes, wage tax and working group wage tax, project assistance
+49 69 6603 1397
+49 69 6603 2397