Category Taxation in Germany

German Tax Court Dictates a Good Breakfast

October 5, 2017 Taxation in Germany

Taxes on breakfastBERLIN – A tax court in Germany has dictated what constitutes a breakfast, saying that bread without toppings does not make the cut.

The tax court of Muenster in Germany have recently ruled that bread and coffee do not count as breakfast, at least for the purposes of calculating tax obligations.

The question of the definition of breakfast arose due to a tax dispute with a local company over food given away on the business premises.

The company, a tech firm, would routinely provide free coffee and bread rolls to employees and customers.

The tax authorities claimed that the food constituted breakfast, and therefore should be treated as a complimentary meal, and taxed as such.

However, the tax court ruled that in order for the foods to be regarded as a breakfast, the bread would need to hav...

Read More

France and Germany Keep Chasing Tech-Giants

August 28, 2017 Taxation in FranceTaxation in Germany

tech giant taxPARIS – France and Germany are stepping up their fight against tax-dodging tech-giants, despite the failures of previous moves to address the problem.

Over the weekend the Finance Minister of France Bruno Le Maire announced that the governments of France and Germany may soon reveal a new “fair contribution” tax to be levied on the profits of large multinational tech firms, such as Google and Facebook.

The exact methodology and mechanics of the new tax have not been revealed, however, the Minister did explain that tax authorities may use the revenues of the companies as a “reference point” to determine what tax level they should face in order to ensure that they are making a contribution in the countries where they generate a profit.

Large tech companies have come under fire for s...

Read More

Germany Forced to Drop Nuclear Tax

June 8, 2017 Taxation in Germany

Nuclear Power Plant, GermanyBERLIN – Nuclear power generators in Germany are set to see a windfall of billions of euros, after a court ruled that a six year old tax on nuclear power was unconstitutional.

The Constitutional Court of Germany has ruled that the government’s tax on the use of nuclear fuel rods by energy producers is unconstitutional and void.

The ruling means that the billions of euros paid by the energy producers since 2010 will be refunded.

It has been estimated that the payout by the government could reach EUR 6 billion, even before interest is taken into account.

The German government has been taking repeated actions to diminish the use of nuclear power in the country, after vowing in 2011 that by 2022 Germany would no longer rely on nuclear-power generation.

The plan to close down the plants is ...

Read More

Germany Eyes Breaks for Takeovers of Startups

September 14, 2016 Taxation in Germany

BERLIN – Start-ups in Germany may soon have an easier time trying to find investors, as new rules look to allow tax breaks following major restructuring.

The Cabinet of Germany is currently considering draft legislation to allow businesses to utilize tax breaks following a major change in shareholding for losses incurred prior to the shift in shareholding.

Under current regulations businesses in Germany are not able to claim tax breaks for losses following a major change in shareholding, such as a buyout or takeover.

The present legislation is aimed at stopping a situation where a company is purchased solely to take advantage of tax breaks from losses.

The new rules are aimed at encouraging greater activity and investment in start-ups and small businesses, as previously the new owners a...

Read More

Germany Cuts Revenue Projections

November 6, 2015 Taxation in Germany

BERLIN – Germany is set to see a reduction in tax revenues almost equal to the funds set aside for settling refugees.

In an announcement made on November 3rd the Finance Minister of Germany Wolfgang Schäuble announced that in 2016 the tax revenues which will be collected by the government will be lower than previously expected.

The government had expected to collect tax revenues of EUR 686.2 billion, however, now the government believes that tax revenues will only hit EUR 681 billion, a level which is EUR 5.2 billion lower.

The reduced tax revenues are expected to put extra pressure on the government budget, especially since earlier this year the government set aside approximately EUR 6 billion to be spent to help feed, shelter and settle refuges coming to the country.

The Minister sai...

Read More