News out of my Tax World

Navigating German Tax Law as a Foreign Practitioner: A Digital "Workaround" For foreign tax practitioners, accessing German tax law in English can be a significant hurdle, especially when a quick initial orientation is required. While official English translations are scarce, the Federal Ministry of Finance (BMF) provides an excellent, reliable, and up-to-date digital resource: the Official Tax Handbooks ( Amtliche Handbücher ). You can find the digital repository at amtliche-handbuecher.bundesfinanzministerium.de . These online handbooks offer rapid access to statutes, regulations, guidelines, and administrative notes for specific assessment periods. The Strategy: Since German tax law is officially written only in German, the most effective workaround is a combination of the official source and modern AI tools: Identify the specific law and paragraph (e.g., § 4 Abs. 5 Nr. 2 EStG regarding business entertainment expenses "Bewirtung"). Access the text directly fro...

An overview of transfer pricing principles in Germany available in English Source: KI generiert (Gemini) For those seeking a comprehensive and "neutral" perspective, the German transfer pricing country profile provided by the OECD offers an overview of transfer pricing principles in Germany in English.  And here the link: Transfer Pricing Country Profiles | OECD https://www.oecd.org/content/dam/oecd/en/topics/policy-sub-issues/transfer-pricing/transfer-pricing-country-profile-germany.pdf It provides insights on domestic legislation, the arm's length principle, documentation requirements, and dispute resolution mechanisms, aligned with international standards and links to material in the web much of it in Englisch.  Especially helpful links in the OECD country profile include:  - The administrative principles governing transfer pricing principles (Verwaltungsgrundsätze-Verrechnungspreise from December 2024)  - The fact sheet on transaction matrix...

Sometimes – thanks to the tax administration – you are asked to dig again into what you have learned as a tax student on basic rules of international taxation. Source: KI Gemini So, what has happened: The tax office argues article 14 (4) of the tax treaty between Cyprus and Germany from 2011, which deals with the taxation of the salary of crews on ships and airlines and which uses the term "shall be taxable only", is overruled by Article 22 which deals with the elimination of double taxation. Hence, the tax office argues Germany has a taxation right. The difference: Article 14 (4) allows only Cyprus to tax the salary (if the place of effective management of the employer and shipping company is situated in Cyprus) while Article 22 allows also Germany to tax and to credit any Cyprus income tax against the German income tax (credit method). The (overlooked) basic rule: The term "shall be taxable only" in a tax treaty usually precludes the other contracting state from t...