#21.5 [englisch] Update: Circular concerning § 49 EStG - Royalty payments with underlying German registered IP
In this episode, we discuss the newest developments with respect to the German taxation of royalty payments paid between foreign parties that entail IP being registered in German registers. It is the newest bump in an incomparable rollercoaster ride: When it was first discovered that such royalties might be taxable in Germany, there was of course no guidance on how to treat these cases. Then, the Federal Ministry of Finance published a circular stating that such payments are indeed taxable in Germany. Not a week later, a draft bill was published abolishing the critical parts of the statute, thus restricting German taxation with respect to these payments. Shortly after, the draft bill was amended, revoking the removal once again. Only yesterday the latest circular was published, once again clearly stating the taxation of such royalties in German, however giving certain easements. We discuss the details of the circular with important information on how to handle these cases. With us as guests are Dr. Nadia Altenburg, Dr. Matthias Korff and Dr. Benedikt Ellenrieder, who have unique expertise in these cases, being front runners in the argumentation against the taxation of such royalties in Germany. Folge direkt herunterladen