Advanced Search

Law on taxation on foreign relations

Original Language Title: Gesetz über die Besteuerung bei Auslandsbeziehungen

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.

Law on Taxation of Foreign Relations (External Tax Act)

Unofficial table of contents

AStG

Date of completion: 08.09.1972

Full quote:

" External tax law of 8 September 1972 (BGBl. I p. 1713), most recently by Article 8 of the Law of 22 December 2014 (BGBl. I p. 2417).

Status: Last amended by Art. 8 G v. 22.12.2014 I 2417

For more details, please refer to the menu under Notes

Footnote

(+ + + Text proof applicable: 29.8.1980 + + +) 
(+ + + For application cf. § 21 + + +)


The G was referred to as Art. 1 d. G v. 8.9.1972 I 1713 passed by the Bundestag with the consent of the Bundesrat. It's gem. Article 8 of this Act entered into force on 13 September 1972.

Part one
International entanglements

Unofficial table of contents

§ 1 Correction of income

(1) The income of a taxable person from a business relationship with another person abroad with a person close to him shall be reduced by the fact that he is based on other conditions, in particular prices (transfer pricing), of his or her future determination, when they had agreed to independent third parties under the same or comparable conditions (the principle of non-compliance), their income should be subject to the conditions laid down in other rules, without prejudice to other provisions, such as those between them Third agreed conditions would be incurred. Taxable persons within the meaning of this provision shall also be a personal company or a co-enterprise; a partnership or co-entrepreneurship shall be a self-esteeming person if it satisfies the conditions set out in paragraph 2. For the purpose of applying the foreign comparison principle, it must be assumed that the independent third parties know all the essential circumstances of the business relationship and act according to the principles of ordinary and conscientious business managers. If the application of the foreign comparison principle leads to more detailed corrections than the other provisions, the further corrections must be carried out in addition to the legal consequences of the other provisions. (2) The taxable person is a Person close to
1.
the person is directly or indirectly involved in the taxable person for at least one quarter (substantially involved), or may exercise directly or indirectly a dominant influence on the taxable person, or vice versa A taxable person is substantially involved in the person or who can exercise a dominant influence directly or indirectly on that person; or
2.
a third person is substantially involved in both the person and the taxable person, or can exercise a dominant influence directly or indirectly on both the person and the taxable person; or
3.
the person or taxable person is in a position to exercise, in the agreement of the terms of a business relationship with the taxable person or the person, an influence justified outside that business relationship, or if one of them is has its own interest in attaining the income of the other.
(3) For a business relationship within the meaning of the first sentence of paragraph 1, the transfer price shall be determined as a priority by the price comparison method, the resale price method or the cost-impact method if the foreign comparison values are determined. , which are fully comparable with regard to the functions carried out, the assets used and the opportunities and risks taken (functional analysis) for these methods, after taking into account appropriate adjustments; several such values form a bandwidth. If such other comparative values are not to be determined, the use of a suitable transfer pricing method shall be based on limited comparable values after taking appropriate adjustments. If, in the cases of the sentence 2, a plurality of restricted comparable foreign comparison values can be determined, the resulting bandwidth is to be constricted. If the value used by the taxable person for his future determination is in the cases of the first sentence outside the range or in the cases of the second sentence outside the restricted bandwidth, the median shall be decisive. Where there is no possibility of finding a comparable comparable level of comparison, the taxable person shall carry out a hypothetical comparison with the third sentence of paragraph 1 for the purposes of his future determination. For this purpose, he has to determine the minimum price of the service recipient and the maximum price of the beneficiary on the basis of a functional analysis and in-company planning calculations, taking into account functional and risk-adequate capitalisation rates. (Unification area); the area of unification is determined by the respective profit expectations (profit potentials). It shall be based on the price in the area of settlement of the future determination which is the most likely to correspond to the foreign comparison principle; if no other value is made credible, the average value of the settlement area shall be based on: on the market. If the scope of the agreement used by the taxable person is not applicable and therefore has to be assumed by another area of integration, a future correction may be waived if the taxable person is based on the basis of the Value is within the other integration range. If a function, including the associated opportunities and risks, and the economic assets and other benefits transferred or levied, is relocated (function shift), it is to be applied to the displaced function, sentence 5, because: the transfer package as a whole does not have at least limited comparable foreign comparative values, the taxpayer has to determine the settlement area on the basis of the transfer package. In the cases of sentence 9, the determination of individual transfer prices for all the economic goods and services concerned shall be recognised after taking appropriate adjustments where the taxable person makes credible that no -essential intangible assets and advantages were the subject of the transfer of functions, or that the sum of the individual transfer prices, as measured by the evaluation of the transfer package as a whole, was the foreign comparison principle ; makes the taxable person credible that at least one essential immaterial economic material is the subject of the transfer of functions, and he describes it exactly, is to recognise individual transfer prices for the components of the transfer package. Where, in the cases of sentences 5 and 9, substantial intangible assets and advantages are the subject of a business relationship and the actual subsequent profit development differs significantly from the development of profits, which are the On the basis of transfer pricing, it can be refuted to suspect that at the time of the transaction there were uncertainties regarding the price agreement and that independent third parties had agreed on an appropriate adjustment system. If such a scheme has not been agreed and a significant deviation within the meaning of the sentence 11 occurs within the first ten years following the conclusion of the transaction, the correction referred to in the first sentence of paragraph 1 shall be unique in the case of a rectification which is therefore to be taken into account. an appropriate amount of adjustment to the original transfer price of the tax on the marketing year following the year in which the deviation occurred. (4) Business relationships within the meaning of this provision are
1.
single or multiple cohesive economic operations (transactions) between a taxable person and a person close to him,
a)
the part of an activity of the taxable person or the person close to the person concerned, to which the provisions of § § 13, 15, 18 or 21 of the Income Tax Act are to be applied or to be applied if the business incident in the domestic territory is subject to the participation of a which would have occurred to unrestricted taxable persons and to a domestic close-up person; and
b)
which are not based on a company-contractual agreement; a contractual agreement is an agreement which directly leads to a legal change in the position of the shareholder;
2.
Business transactions between a company of a taxable person and its establishment located in another country (the approximation of existing school-law relationships).
If a commercial incident is not based on a debt agreement, it is to be assumed that independent ordinary and conscientious directors would have reached an agreement or an existing one (5) The provisions of paragraphs 1, 3 and 4 shall apply mutatically if the taxable person is to be subject to the application of the provisions of this Regulation. Point 2 of the first sentence of paragraph 4, the terms and conditions, in particular the Transfer prices tax on the distribution of the income between a domestic company and its foreign establishment or the determination of the income of the domestic establishment of a foreign company , do not correspond to the foreign-comparison principle and thereby reduce the domestic income of a limited taxable person or increase the foreign income of an unrestricted taxable person. For the purpose of applying the foreign comparison principle, a permanent establishment is to be treated as an independent and independent company, unless the affiliation of the establishment to the company requires a different treatment. In order to treat the site as an independent and independent company, you are to be assigned in a first step:
1.
the functions of the company exercised by its staff (personnel functions),
2.
the assets of the undertaking which it requires to carry out the functions assigned to it;
3.
the opportunities and risks of the undertaking which it acquires on the basis of the functions and associated assets exercised, and
4.
appropriate equity capital (endowment capital).
On the basis of this assignment, in a second step, the nature of the business relationships between the company and its permanent establishment and the transfer prices for these business relationships must be determined. The sentences 1 to 4 shall be applied accordingly to permanent representatives. The possibility of forming a compensation post in accordance with § 4g of the Income Tax Act will not be restricted. Sentences 1 to 4 shall not apply to business relations between a shareholder and his/her personal company or between a co-contractor and his co-entrepreneurship, whether or not the holding is directly involved in the business. or, in accordance with Article 15 (1), first sentence, second sentence, second sentence, of the Income Tax Act, paragraph 1 shall apply to those business relationships. Where an agreement to avoid double taxation is applied and the taxable person claims that the provisions of that agreement are contrary to the provisions of sentences 1 to 7, the agreement shall take precedence only in so far as the taxable person proves that the other State exercising its right of taxation in accordance with this Agreement and therefore would lead to the application of sentences 1 to 7 to double taxation. (6) The Federal Ministry of Finance is authorized, with the consent of the Federal Council, by Legal Regulation Details of the foreign comparison principle referred to in paragraphs 1, 3 and 5; and To lay down detailed rules for the uniform application of this Regulation and to lay down principles for the determination of the share capital within the meaning of paragraph 5, third sentence, point 4.

Footnote

(+ + + § 1: For application, see Section 21 (4), (11), (16), (20), 22 + + +)

Part two
Change of residence in low-taxable areas

Unofficial table of contents

§ 2 Income Tax

(1) A natural person who, in the last ten years before the end of his unrestricted tax liability, has been subject to an unlimited income tax as a German for a total of at least five years in accordance with Section 1 (1) sentence 1 of the Income Tax Act; and
1.
is resident in a foreign territory where it is subject to low taxation on its income, or is not resident in any foreign territory, and
2.
have essential economic interests within the scope of this law,
until the end of ten years after the end of the year in which its unrestricted tax liability has ended, it shall be subject to a limited tax liability in addition to the limited tax liability in accordance with the Income Tax Act, with all income in the sense of the § 2 (1) sentence 1 of the first half-sentence of the Income Tax Act, which are not foreign income within the meaning of § 34d of the Income Tax Act with unlimited income tax liability. For the income of the natural person who is not obtained either by the foreign establishment of that person or by permanent representatives acting in a foreign country, the existence of a domestic person shall be subject to the application of that provision. The management establishment of the natural person to which such income is to be assigned. Sentence 1 shall apply only in the case of investment periods in which, in total, taxable income is more than EUR 16 500. (2) A low level of taxation within the meaning of paragraph 1 (1) shall be applied if:
1.
the burden of the income tax levied in the foreign territory-according to the tariff, with the inclusion of tariff allowances-for an unmarried natural person established in that territory, who is a taxable income from 77 000 euro, more than one third less than the burden of a natural person established within the scope of this law by the German income tax under otherwise identical conditions, unless the person proves that: that the total amount of tax to be paid by their income shall be at least two Third of the income tax which it would have to pay in the event of unlimited tax liability pursuant to Section 1 (1) of the Income Tax Act, or
2.
the burden on the person by the income tax levied in the foreign territory may be significantly reduced on the basis of a preferential tax granted in relation to the general taxation, unless the person proves that the income tax charged by the person in question has been the total amount of tax to be paid to their income is at least two-thirds of the income tax which it would have to pay for unlimited tax liability pursuant to Article 1 (1) of the Income Tax Act.
(3) A person, within the meaning of paragraph 1 (2), has essential economic interests within the scope of this Act, if:
1.
at the beginning of the assessment period, it is an undertaking or a co-contractor of a commercial establishment situated within the scope of this Act, or, where it is a commercial partner, more than 25 per cent of the income referred to in Article 15 (1), first sentence, No. 2 of the Income tax law from the company is attributable to it or if it belongs to a domestic capital company within the meaning of Section 17 (1) of the Income Tax Act (Einkommensteuergesetz) or
2.
their income, which are not foreign income within the meaning of § 34d of the Income Tax Law, with unlimited income tax liability, are more than 30 per cent of their total income in the assessment period or exceed EUR 62 000 or
3.
at the beginning of the assessment period, their assets, whose income in the case of unrestricted income tax liability would not be foreign income within the meaning of Section 34d of the Income Tax Law, is more than 30 per cent of their total assets, or 154 000 Euro exceeds.
(4) In the case of the application of paragraphs 1 and 3, in the case of a person, a commercial enterprise, shareholding, income and assets of a foreign company within the meaning of § 5, in which the person is involved in the conditions set out therein, shall be: shall be taken into account in accordance with their participation. (5) If paragraph 1 is to be applied, the rate of taxation applicable to all income of the person shall apply; for the purpose of determining the tax rate, income from capital assets shall not be Subject to the separate tax rate in accordance with Section 32d (1) of the Income Tax Act. § 50 (2) of the Income Tax Act is not applicable to income subject to tax deductions on the basis of § 50a of the Income Tax Act. Article 43 (5) of the Income Tax Act shall remain unaffected. (6) The person shall provide that the total tax to be paid in addition to the provisions of paragraphs 1 and 5 shall result in a higher domestic tax than that of unrestricted tax. If the tax and domiciate were to be paid exclusively within the scope of this Act, the surpassing amount shall not be levied in so far as it exceeds the tax which would result without the application of paragraphs 1 and 5.

Footnote

(+ + + § 2 (1): For the first application, see Section 21 (18) + + +)
(+ + + § 2 (5): For application, see Section 21 (21) + + +)
§ 2 (1): See footnote to § § 20 (1) (a); BVerfGE v. 14.5.1986 I 1030-2 BvL 2/83- Unofficial table of contents

§ 3

(dropped) Unofficial table of contents

§ 4 inheritance tax

(1) If, at the time of the creation of the tax liability § 2 (1) sentence 1 was applied to a deceased or a gift, the duty to tax on inheritance tax pursuant to Section 2 (1) (3) of the Inheritance Tax Act shall be subject to the scope of the tax liability referred to in paragraph 2 (1) of the inheritance tax law. (2) Paragraph 1 shall not apply if it is proved that the income tax is not subject to foreign income in the sense of Section 34d of the Income Tax Act. of the acquisition pursuant to this provision on § 2 para. 1 no. 3 of the inheritance tax law In addition, a tax corresponding to the German inheritance tax, which amounts to at least 30 per cent of the German inheritance tax, which, in the application of paragraph 1, is attributable to those parts of the acquisition, would be subject to tax. Would. Unofficial table of contents

§ 5 Intermediate companies

(1) Are natural persons who in the last ten years before the end of their unlimited tax liability according to § 1 paragraph 1 sentence 1 of the German Income Tax Act as a total of at least five years have been unrestricted income tax and the conditions set out in § 2 (1) sentence 1 (1) (1) (person within the meaning of § 2), alone or together with unrestricted taxable persons in a foreign company within the meaning of § 7 are involved, such are the income with which these persons are unrestricted tax liability according to § § 7, 8 and 14 would be taxable and the non- Foreign income within the meaning of § 34d of the Income Tax Act is to be attributed to these persons. If the conditions set out in the first sentence are met, the assets of the foreign company whose income in the case of unrestricted tax liability would not be foreign income within the meaning of § § 34d of the Income Tax Act shall be the assets of the foreign company in the case of § 4 (2) The assets underlying the income attributable to a person in accordance with paragraph 1 shall be liable for the taxes payable by that person for such income. (3) § 18 shall apply to such income Application.

Part Three
Treatment of a participation in the sense of § 17 of the Income Tax Act when changing residence abroad

Unofficial table of contents

Section 6 Taxation of asset growth

(1) In the case of a natural person who has been subject to unlimited tax liability for a total of at least ten years pursuant to Section 1 (1) of the Income Tax Act and whose unrestricted tax liability ends by abandonning the domiciliate or habitual residence, the person shall be subject to the following: apply to shares within the meaning of Section 17 (1) sentence 1 of the Income Tax Law at the time of the termination of the unrestricted tax liability § 17 of the Income Tax Law even without disposal, if, moreover, for the shares at that time the The requirements of this provision are met. The cessation of unrestricted tax liability in the sense of sentence 1 shall be equal to
1.
the transfer of the shares through wholly or partly free legal transactions in the living or by the acquisition of death for persons not subject to unlimited taxation, or
2.
the establishment of a residence or habitual residence or the fulfilment of another similar feature in a foreign country, where the taxable person is deemed to have been in accordance with an agreement to avoid double taxation than in the case of is to be considered a resident of that State,
3.
the deposit of the shares in an establishment or establishment of the taxable person in a foreign country, or
4.
the exclusion or limitation of the tax law of the Federal Republic of Germany as regards the profit from the sale of the shares on the basis of events other than those referred to in the first sentence or the events referred to in points 1 to 3.
Article 17 (5) of the Income Tax Act and the provisions of the Transformation Tax Act remain unaffected. In place of the selling price (Section 17 (2) of the Income Tax Act), the mean value of the shares shall be entered in the relevant date as set out in the first or second sentence of the first sentence. § § 17 and 49 (1) (2) (e) of the Income Tax Act remain unaffected by the fact that the profit to be used under these provisions from the sale of these shares in order to be taxed under the above rules (2) If the unrestricted taxable person has acquired the shares through wholly or partly free legal transactions, the amount of the unlimited tax liability shall also apply to the calculation of the duration of the unrestricted tax liability as determined in accordance with paragraph 1. Periods of time in which the legal transitory is transferred to the transfer of the shares has been subject to unlimited tax liability. If the shares have been transferred several times in succession in such a manner, the first sentence shall apply mutagens to each of the legal guerriors. Periods in which the taxable person or one or more legal guerriors were simultaneously subject to unlimited tax liability shall be applied only once. (3) The discontinuation of unlimited tax liability on temporary absentia and if the taxable person is subject to unlimited tax liability within five years since the end of the unrestricted tax liability, the tax claim referred to in paragraph 1 shall not apply if the shares are not sold in the interim period and the The facts referred to in the second sentence of paragraph 1, point 1 or 3, have not been fulfilled and the Taxable persons at the time of the establishment of the unrestricted tax liability do not apply in accordance with an agreement to avoid double taxation as established in a foreign country. The tax office, which is competent in the date referred to in the first sentence of paragraph 1 or in the second sentence of paragraph 1 of the tax code, may extend that period by a maximum of five years if the taxable person makes a credible statement that his professional reasons for his or her work are Absence is decisive and its intention to return remains unchanged. If, in the case of the acquisition of death on the basis of the second sentence of the second sentence of paragraph 1, the legal successor of the taxable person is subject to unlimited tax liability within five years from the date of the creation of the tax asset referred to in paragraph 1, the first sentence shall apply mutagenic to the provisions of the first sentence. If the tax claim referred to in paragraph 5 is uncovered, the first sentence shall apply without the time limit referred to in that paragraph, if:
1.
the taxable person or, in the case referred to in paragraph 1, second sentence, No. 1, his legal successor shall be subject to unlimited taxation; or
2.
the right of taxation of the Federal Republic of Germany with regard to the profit from the sale of the shares is, or is no longer limited, on the basis of another event.
(4) Subject to the provisions of paragraph 5, the income tax due under paragraph 1 shall be payable on application in regular instalsals for a period not exceeding five years from the date of the first maturity of the security against security, if the security of the income tax is not Early recovery would be associated with considerable hardship for the taxable person. The deferment is to be revoked, in so far as the shares are sold during the period of validity or hidden in a company within the meaning of § 17 (1) sentence 1 of the Income Tax Act or one of the facts of § 17 (4) of the Income Tax Act. In the cases referred to in the first and second sentences of paragraph 3, the period of validity shall be determined in accordance with the time limit laid down pursuant to this provision; the collection of instalments shall not apply; the security benefit may be waited only if the tax claim is not (5) In the case of the first sentence of paragraph 1, the taxable person is a national of a Member State of the European Union or of any other State to which the Agreement on the European Economic Area of 3 January 1994 (OJ L 327, 31.12.1994, p. EC No 3), as last amended by the Decision of the EEA Joint Committee No 91/2007 of 6 July 2007 (OJ L 327, 28.11.2007, p. EU No 40), as amended by the EEA Agreement (State Party of the EEA Agreement), and subject to the termination of unlimited tax liability in one of those States (State of the State), one of the German unrestricted Income tax liability comparable tax liability, the tax due in accordance with paragraph 1 shall be free of interest and without guarantee of security. The precondition is that mutual assistance and mutual assistance in the recovery of the tax due between the Federal Republic of Germany and the Federal Republic of Germany are guaranteed. The provisions of sentences 1 and 2 shall apply mutatily if:
1.
in the case referred to in the second sentence of the first sentence of paragraph 1, the legal successor to the taxable person of one of the German unrestricted income tax obligations in a Member State of the European Union or a State Party to the EEA Agreement or subject to
2.
in the case referred to in the second sentence of paragraph 1, the taxable person is subject to a tax obligation comparable to that of German unlimited income tax in a Member State of the European Union or a Contracting State of the EEA Agreement; and is a national of one of those States; or
3.
in the case referred to in the second sentence of paragraph 1, point 3, the taxable person shall enter into an establishment or a permanent establishment in another Member State of the European Union or another State Party to the EEA Agreement, or
4.
in the case referred to in the second sentence of paragraph 1, point 4 of the taxable shares in a company established in a Member State of the European Union or in a Contracting State of the EEA Agreement.
The deferment is to be revoked,
1.
to the extent to which the taxable person or his successor in accordance with the provisions of sentence 3 (1) is sold or concealed in a company within the meaning of Section 17 (1) sentence 1 of the Income Tax Act or of one of the facts of Section 17 (4) of the Income Tax Act Income tax law is being fulfilled;
2.
in so far as shares are transferred to a non-unlimited taxable person who is not comparable to one of the German unrestricted income tax liability in a Member State of the European Union or a State Party to the EEA Agreement is subject to tax liability;
3.
where, in respect of the shares, a withdrawal or other operation is carried out which, under national law, leads to the approach of the value or the common value;
4.
if, for the taxable person or his successor in accordance with sentence 3 (1), the duty of residence or habitual residence does not require a tax liability in accordance with the first sentence of the first sentence.
A conversion process to which § § 11, 15 or 21 of the Transformation Tax Act of 7 December 2006 (BGBl. 2782, 2791), as amended, shall not be deemed to be a divestment within the meaning of the fourth sentence of sentence 1, if the shares received are held by an unrestricted taxable shareholder who does not share the shares in a In accordance with Section 13 (2), Section 21 (2) of the Transformation Tax Act, operating assets may be considered as the cost of the previous shares; for the purposes of the application of the fourth sentence and paragraphs 3, 6 and 7, the surviving shares shall be subject to the following: Shares in the body of the shares referred to in paragraph 1. If, in the case of sentence 1 or sentence 3, the total amount of the income excluding the asset growth referred to in paragraph 1 is negative, this asset growth shall not be taken into account in the application of Section 10d of the Income Tax Law. In the event of an event falling within the meaning of sentence 4, the increase in assets shall be taken into account retroactively in the application of Section 10d of the Income Tax Act and, in application of the sixth sentence, or amended, shall be taken into account or amended; or § 175 (1) sentence 2 of the Tax Code applies accordingly. (6) If, in the case of paragraph 5, sentence 4, No. 1, the capital gain within the meaning of Section 17 (2) of the Income Tax Law at the time of the termination of the tax is the rate of increase is lower than the growth in the capital referred to in paragraph 1 and the reduction in value shall be made at the If income tax is not taken into account by the state in which the drawing is taken, the tax notice shall be repealed or amended in so far as the second sentence of Section 175 (1) of the Tax Code shall apply accordingly. This applies only to the extent to which the taxable person proves that the impairment loss is operationally initiated and is not due to a company law measure, in particular a profit distribution. The impairment loss shall be taken into account at most in the amount of the asset growth referred to in paragraph 1. If the reduction in value is due to a profit distribution and is not taken into account in the income tax, the domestic domestic market, which is levied on this profit distribution and is no longer subject to a reduction claim, is (7) The taxable person or his successor in law has the tax office, which is competent in the date referred to in paragraph 1 above, in accordance with Section 19 of the Tax Code, according to official the implementation of any of the facts referred to in the fourth sentence of paragraph 5 . The notification shall be refunded within one month of the notifiable event; it must be signed by the taxable person on its own initiative. In the cases referred to in the first sentence of paragraph 5 (4) (1) and (2), the communication shall be accompanied by a written record of the legal transaction. The taxable person shall communicate to the tax office competent in accordance with the first sentence of 31 January, by the end of 31 January, his address in force on 31 December of the preceding calendar year, and to confirm that the shares are or in the case of the tax authorities. the legal successor shall continue to be attributed to his legal successor in his or her legal successor. The deferment referred to in the first sentence of paragraph 5 may be revoked if the taxable person does not comply with his obligation to compel the person to act in accordance with the fourth sentence.

Footnote

(+ + + § 6 (1): For the first application, see Section 21 (13) sentence 1 + + +)
(+ + + § 6 para. 3 no. 4: For the first time and for the last time, see Section 21 (8) + + +)
(+ + + § 6 (2) to (7)): For the application, see Section 21 (13) sentence 2 + + +)
(+ + + § 6 (5) sentence 3: For application, see Section 21 (23) + + +)

Fourth part
Participation in foreign intermediary companies

Unofficial table of contents

§ 7 Tax obligation of domestic shareholders

(1) Are unrestricted taxable persons in a corporation, personal association or property within the meaning of the Corporate Tax Act, which has neither management nor registered office within the scope of this Act and which is not in accordance with Section 3 (1) of the Corporation tax law exempted from corporate tax liability (foreign company), more than half involved, so are the income for which this company is an intermediate company, at each of them with the part taxable person, who is responsible for the participation in the nominal capital of the (2) For the purposes of paragraph 1, unrestricted taxable persons are involved in more than half of a foreign company, if they are alone or together with persons within the meaning of Section 2 at the end of the marketing year of the Company in which it has received the income referred to in paragraph 1 (the relevant marketing year), more than 50 per cent of the shares or voting rights in the foreign company are to be attributed. In the case of the application of the above sentence, account shall also be taken of shares or voting rights which are communicated by another company, in proportion to the shares or voting rights in the mediating society to the all shares or voting rights in this company; this shall apply in accordance with the provision of shares or voting rights by a number of companies. If a company capital does not exist and there are no voting rights either, it depends on the ratio of the participations in the assets of the company. (3) Are unrestricted taxable persons directly or through partnerships of a partnership which, in turn, participates in a foreign company within the meaning of paragraph 1, it shall be deemed to be a party to the foreign company. (4) The application shall be subject to an unlimited amount of taxable persons. § § 7 to 14 shall also be attributed to shares or voting rights held by a person who: shall follow his instructions or follow in such a way that it does not leave any substantial room for manoeuvre. This condition is not already fulfilled solely by the fact that the unrestricted taxable person is involved in the person. (5) For the profit distribution of the foreign company, the participation in the nominal capital is not decisive or has the participation of the person in question. In the absence of nominal capital, the distribution of the income referred to in paragraph 1 shall be based on the scale of the distribution of profits. (6) If a foreign company is an intermediary company for intermediate income with a capital investment character in the sense of of paragraph 6a and shall be subject to an unlimited taxable person in the company At least 1 per cent shall participate, these interim income shall be taxable in the case of this taxable person in the extent determined in paragraph 1, even if the conditions set out in paragraph 1 are not otherwise fulfilled. Sentence 1 shall not apply if the gross income in respect of the intermediate income in the form of a capital investment is not more than 10% of the gross income of the foreign intermediary, which is the basis for the total intermediate income. in the case of an intermediary company or a taxable person, the amounts to be deducted from this shall not exceed a total of EUR 80,000. The first sentence shall also be applied where less than 1% is involved, if the foreign company achieves only or almost exclusively gross income which is based on intermediate income with a capital investment character, unless: that the main nature of the shares of the foreign company is a substantial and regular trading on a recognised stock exchange. (6a) Interim income with a capital investment character is the income of the foreign intermediate company (§ § 3). 8), from the holding, the administration, value maintenance or value increase by means of payment, receivings, securities, holdings (with the exception of the income referred to in Article 8 (1) (8) and (9)) or similar assets, unless the taxable person proves that they originate from an activity which: an own activity of the foreign company covered by section 8 (1) (1) to (6), with the exception of activities within the meaning of Section 1 (1) (6) of the Banking Act, as amended by the notice of 9 September 1998 (BGBl. 2776), as last amended by Article 3 (3) of the Law of 22 August 2002 (BGBl I). 3387), as amended. (7) Paragraphs 1 to 6a shall not apply where the income for which the foreign company is an intermediary is the provisions of the investment tax law in the (8) shall be subject to the application of an agreement to avoid double taxation on the basis of the domestic tax base. (8) Are unlimited Taxable persons participating in a foreign company and is the subject of a Company within the meaning of § 16 of the REIT Law of 28 May 2007 (BGBl. 914), as amended, paragraph 1 shall apply without prejudice to the extent of the respective shareholding in the foreign company, unless the main nature of the shares of the foreign company is an essential one. and regular trading on a recognised stock exchange.

Footnote

(+ + + § 7: For application, see § 21 + + +)
(+ + + § 7 (6): For the first application, see: Section 21 (17) + + +)
(+ + + § 7 (8)): For the first application, see Section 21 (15) + + +) Unofficial table of contents

§ 8 Income of intermediary companies

(1) A foreign company is an intermediate company for income which is subject to low taxation and does not come from:
1.
agriculture and forestry,
2.
the production, processing, processing or assembly of goods, the generation of energy, and the search for and extraction of mineral resources,
3.
the operation of credit institutions or insurance undertakings which operate in a commercial operation for their transactions, unless the transactions are mainly carried out with unrestricted taxable persons established pursuant to Article 7 of the a foreign company, or a person close to such a taxable person within the meaning of section 1 (2) of this Regulation,
4.
the trade, if not
a)
an unlimited taxable person who is involved in the foreign company in accordance with § 7, or a person who is close to such a taxable person within the meaning of section 1 (2) and who, with their income from this law, is in the scope of this Act is taxable, the foreign company provides the power to dispose of the goods or goods traded, or
b)
the foreign company provides such a taxable person or a person close to such a person with the power to dispose of the goods or goods;
unless the taxable person proves that the foreign company maintains a commercial business established for such commercial transactions in a commercial manner with the participation in the general economic transport and that the (a) the preparation, conclusion and execution of the activities of the business, without the participation of such a taxable person or a person close to that person,
5.
Services, unless
a)
the foreign company provides for the service of an unrestricted taxable person who is involved in it pursuant to § 7, or of a person close to such a taxable person within the meaning of section 1 (2) who is close to that person and who has the income of a person with a person's income is subject to tax liability under this Act from the performance of the performance of the service, or
b)
the foreign company provides the service to such a taxable person or a person close to such a person, unless the taxable person proves that the foreign company is in favour of the operation of such a person, Services provided for business operations with participation in general economic transport, and the activities related to the service without the participation of such a taxable person or a person close to such a person ,
6.
the leasing and leasing, excluding
a)
the omission of the use of rights, plans, patterns, procedures, experience and knowledge, unless the taxable person proves that the foreign company evaluates the results of its own research or development work which: , without the participation of a taxable person who is involved in the company pursuant to § 7, or of a person close to such a taxable person within the meaning of section 1 (2) of this Article,
b)
the leasing or leasing of land, unless the taxable person proves that the income thereof would be exempt from tax exemption under an agreement to avoid double taxation, provided that it is exempt from the obligation of taxable persons not limited to the taxable person, who have been directly related to the foreign company in accordance with § 7, and
c)
the rental or lease of movable property, unless the taxable person proves that the foreign company is engaged in commercial renting or leasing, taking part in the general economic activity; Transport and all activities related to such commercial renting or leasing without the participation of an unrestricted taxable person who is involved in it pursuant to § 7, or any such taxable person in the sense of the § 1 (2) of the person who is close to the person concerned,
7.
the admission and loan-wise allocation of capital for which the taxable person proves that it is exclusively on foreign capital markets and not in the case of a person close to him or the foreign company within the meaning of section 1 (2) Establishments or establishments situated outside the scope of this Act and relating to their gross income exclusively or almost exclusively from activities falling within the scope of points 1 to 6, or within the scope of the The scope of this law shall be supplied to holdings or premises ,
8.
Profit distributions of capital companies
9.
the sale of a share in another company and the liquidation or liquidation of its capital, in so far as the taxable person proves that the liquidating profit is attributable to the assets of the other company which have been sold, the other than those referred to in point 6 (b), in so far as they are income of a company within the meaning of Article 16 of the REIT Act, or Article 7 (6a) thereof; this shall apply in so far as the profit on such economic goods is of a company in which the other company is involved; losses from the The sale of shares in the other company and its dissolution or the reduction of its capital shall be taken into account only in so far as the taxable person proves that they are due to economic assets which: Activities within the meaning of point 6 (b), in so far as they are income of a company within the meaning of Section 16 of the REIT Act, or in the sense of Section 7 (6a) thereof,
10.
Conversions which, notwithstanding the provisions of Section 1 (2) and (4) of the Convertible Tax Act, could take place in respect of book values; this does not apply to the extent that a conversion covers the share of a capital company, the sale of which does not meet the requirements of the number 9 would be fulfilled.
(2) notwithstanding paragraph 1, a company having its registered office or management in a Member State of the European Union or a State Party to the EEA Agreement shall not be an intermediary for income, for which it is not limited Taxable persons who are involved in the company within the meaning of Article 7 (2) or (6) shall demonstrate that the company is engaged in an effective economic activity in that State. Further condition is that information is provided between the Federal Republic of Germany and the Federal Republic of Germany pursuant to Article 2 (2) of the EU Administrative Assistance Act or a comparable two-or multi-sided agreement on the basis of the mutual assistance directive which are necessary to carry out the taxation. The first sentence shall not apply to the income of a sub-company which is not to be attributed to the company in accordance with Article 14 and which has neither its registered office nor its management in a Member State of the European Union or of a State Party to the EEA Agreement. This also applies to intermediate income attributable to a permanent establishment of a company outside the European Union or to the Contracting States of the EEA Agreement. The actual economic activity of the company is to be attributed only to the income of the company which is obtained through this activity, and only in so far as the foreign comparison principle (§ 1) has been observed. (3) A low Taxation within the meaning of paragraph 1 is provided if the income of the foreign company is subject to a burden of income taxes of less than 25 per cent, without this being based on a compensation with income from other sources. The calculation of the burden shall include claims on the part of the State or the territory of the foreign company in the case of a profit distribution of the foreign company to the unrestricted taxable person or another company, that the taxable person is directly or indirectly involved in. A low level of taxation within the meaning of paragraph 1 shall also be imposed where, although the income taxes of at least 25 per cent are legally owed, they are not actually levied.

Footnote

(+ + + § 8: For application cf. Section 21 (7), 9, 9, 11, 14, 15, 17, 19, 21 + + +) Unofficial table of contents

§ 9 Freifrontier for mixed income

For the purposes of Article 7 (1), income for which a foreign company is an intermediate company shall be disregarded if the gross yields on which they are based no more than 10 per cent of the total gross income of the In the case of a company or a taxable person, it is assumed that the total amount of the amounts to be deducted does not exceed a total of EUR 80,000.

Footnote

(+ + + § 9: For the first application, see: Section 21 (17) + + +) Unofficial table of contents

§ 10 invoice amount

(1) In the case of the unrestricted taxable person, the income tax subject to taxable persons pursuant to section 7 (1) is the amount resulting from the deduction of the taxes payable by the foreign company of those income and the amount of the income received by the foreign company. on the basis of which the underlying assets have been collected (amount of the invoice). In so far as the taxes to be deducted are not yet paid at the time when the income referred to in paragraph 2 is deemed to have been paid, they shall only be paid in the years in which they are paid, by the income taxable pursuant to Article 7 (1). on the market. In the cases referred to in the second sentence of Article 8 (3), taxes shall be reduced by the rights referred to therein by the unrestricted taxable person or by another company in which the taxable person is directly or indirectly involved. If a negative amount is obtained, it is no longer necessary to invoice. (2) The amount of the payment shall be one of the income within the meaning of Section 20 (1) (1) of the Income Tax Act and shall apply immediately after the end of the relevant economic year of the foreign society as a result. If shares in the foreign company belong to an operating assets, the amount of the financial contribution to the income from business, agriculture, forestry or self-employed work shall be increased, and shall be increased according to the income or income. Corporation tax law determined profit of the holding for the marketing year, which ends after the expiry of the relevant economic year of the foreign company. § 3 No. 40 sentence 1 (d), § 32d of the Income Tax Act and Section 8b (1) of the Corporate Income Tax Act are not applicable to the amount of the payment. § 3c (2) of the Income Tax Act applies accordingly. (3) The income on which the amount of the account is based shall be determined in the appropriate application of the provisions of the German tax law; for the determination of the income from Shares in a domestic or foreign investment property are the provisions of the Investment Tax Act of 15 December 2003 (BGBl. 2676, 2724), as amended, provided that this Act is applicable to investment property. A profit determination in accordance with the principles of § 4 para. 3 of the Income Tax Act is equal to a profit determination pursuant to § 4 (1) or § 5 of the Income Tax Act. In the case of a number of participants, the right to vote for the company can only be exercised uniformly. Tax advantages linked to the unrestricted tax liability or the existence of a domestic establishment or a domestic establishment and the provisions of § 4h of the Income Tax Act as well as § § 8a, 8b (1) and 2 of the Corporate Tax Law shall not be taken into consideration; this shall also apply to the provisions of the Transformation Tax Act, to the extent that income from a conversion pursuant to § 8 (1) No. 10 are to be added. Losses incurred in the case of income for which the foreign company is an intermediary may be subject to the corresponding application of § 10d of the Income Tax Act, in so far as they are subject to the income to be levied in accordance with section 9 above shall be deducted. Where the deduction of the taxes referred to in paragraph 1 results in a negative amount, the loss referred to in the fifth sentence shall be increased. (4) In determining the income for which the foreign company is an intermediary, only such income shall be subject to the following: (5) to (7) (7) (to be taken away)

Footnote

(+ + + § 10: For application, see § 21 + + +) Unofficial table of contents

Section 11 Capital gains

(1) profits made by the foreign company arising from the sale of the shares in another foreign company or a company within the meaning of Section 16 of the REIT Act and the dissolution or reduction of its capital and for which the foreign company is an intermediate company, shall be excluded from the amount of the financial contribution, in so far as the income of the other company or of a company subordinated to that company from activities within the meaning of section 7 para. 6a for the same calendar year or marketing year or for the preceding (2) (3) (3) (2) (omitted) (3); (2) (3) (3) (dropped)

Footnote

(+ + + § 11: For application, see § 21 + + +) Unofficial table of contents

§ 12 Tax account

(1) At the request of the taxable person, his income or corporation tax, which is attributable to the amount of the payment, shall be deducted from the taxes which are deductible in accordance with Section 10 (1). In this case, the amount of the invoice is to be increased by these taxes. (2) The provisions of Section 34c (1) of the Income Tax Act and Section 26 (1) and (6) of the Corporate Tax Law shall be applied accordingly. (3) Taxes from the profit distributions exempted pursuant to § 3 No. 41 of the Income Tax Act, on application in the apportionment period of the seizure of the underlying interim income as an amount of payment in the appropriate application of Section 34c (1) and (2) of the Income Tax Act and Section 26 (1) and (6) of the Corporate Tax Law Credited or deducted. This shall also apply if the tax notice is already in force for this assessment period.

Footnote

(+ + + § 12: For application, see § 21 + + +)
(+ + + § 12 (3): For the first application, see Section 21 (17) + + +) Unofficial table of contents

§ 13

(dropped) Unofficial table of contents

§ 14 Post-secondary subsidiaries

(1) If a foreign company is involved in another foreign company (sub-company) alone or together with unrestricted taxable persons in accordance with § 7, the income of the Under-company, which have a low level of taxation, to be attributed to the foreign company to the part which is attributable to their participation in the nominal capital of the subcompany, unless it is proved that the Subcompany these income from activities or objects covered by section 8 (1) (1) to (7) , or is income within the meaning of section 8 (1) (8) to (10), or that these income is derived from activities which serve the own activities of the foreign company within the meaning of Article 8 (1) (1) to (6). The activities of the subcompany shall only serve the activities of the foreign company, which fall within the terms of section 8 (1) (1) to (6), if they are directly related to this activity and if the income is not (2) If a foreign company is involved in a company within the meaning of Section 16 of the REIT Law (sub-company) in accordance with § 7, paragraph 1 shall apply, also referred to in Article 8 (3). (3) Paragraph 1 is shall apply mutatily if the sub-company further comprises foreign companies downstream. (4) (omitted)

Footnote

(+ + + § 14: For application, see § 21 + + +)
(+ + + § 14 (1): For the first application, see Section 21 (17) + + +)
(+ + + § 14 (2): For the first application, see Section 21 (15) + + +)

Fifth Part
Family Foundations

Unofficial table of contents

§ 15 Tax duty of Stiftern, persons entitled to the right of reference and entitled to seizure

(1) The assets and income of a family foundation, which has management and registered office outside the scope of this law (foreign family foundation), shall become the founder, if he is subject to unlimited tax, otherwise the unrestricted Taxable persons who are entitled to a right of access or seizure are attributed in proportion to their share. This does not apply to inheritance tax. (2) Family foundations are foundations in which the founder, his relatives and their descendants are entitled to more than half entitled or seizure. (3) Has an entreprentice within the scope of his The Foundation shall be deemed to have established a foundation, an association of persons or a corporation, an association of persons or a property, the management and its registered office outside the scope of this Act, the Foundation shall be deemed to be a Family foundation, if the founder, his associates, dependent on him Companies, members, members of the Management Board, senior employees and members of these persons are entitled to more than half of the right to take part or be entitled to seizure. (4) The foundations have other assets, assets and legal capacity. (5) § 12 (1) and (2) shall apply accordingly. Article 12 (3) shall apply in respect of taxes on the allowances exempted under paragraph 11. (6) If a family foundation has a management or head office in a Member State of the European Union or a State Party to the EEA Agreement, paragraph 1 shall not apply. when applying
1.
it is established that the assets of the persons referred to in paragraphs 2 and 3 are legally and effectively deprived of the Foundation's assets and
2.
between the Federal Republic of Germany and the State in which the Family Foundation has its head office or head office, pursuant to Article 2 (2) of the EU Administrative Assistance Act or a comparable two-or multi-sided administrative assistance directive agreement, information which is necessary to carry out the taxation.
(7) The income of the foundation referred to in paragraph 1 shall be determined in appropriate application of the provisions of the Corporate Tax Law and the Income Tax Act. In the determination of the income, § 10 (3) shall apply accordingly. (8) The income attributable to the founder or to the person entitled to be paid or seized shall be included in persons who do not have their income under the corporate tax law. , to determine the income within the meaning of Section 20 (1) (9) of the Income Tax Act. Section 20 (8) of the Income Tax Act shall remain unaffected; § 3 (40), first sentence, point (d) and Section 32d of the Income Tax Act shall apply only in so far as these provisions are directly related to the income attributable to the income tax law. persons within the meaning of paragraph 1. § 8 (2) of the Corporate Tax Act shall remain unaffected in so far as the founder or the person entitled to the act or the person entitled to the act is concerned with persons who determine their income in accordance with the Corporate Tax Law; § 8b (1) and (2) of the Corporate Tax Act Corporation tax law shall be applied only in so far as this provision would be applicable directly to the income attributable to persons within the meaning of paragraph 1. (9) Is a foreign family foundation or another foreign foundation within the meaning of paragraph 10 to a body, association of persons or asset mass within the meaning of the corporate tax law, which has neither management nor its registered office within the scope of this Act and which is not exempt from corporate tax liability under Section 3 (1) of the Corporate Tax Law (foreign company), the income of this company is included in the corresponding application of § § 7 to 14 with the part to the income of the family foundation, which is based on the participation of the foundation in the nominal capital of the company No. Paragraph 1 shall not apply to foreign company profit distributions which have been shown to be based on amounts already attributed in accordance with the first sentence. (10) A foreign family foundation shall acquire assets and income of another the foreign foundation which does not fulfil the conditions set out in the first sentence of paragraph 6, in proportion to its share, if, on its own or in combination with the persons referred to in paragraphs 2 and 3, it is more than half, directly or indirectly, shall be entitled or entitled to seizure. Paragraph 1 shall not apply to contributions from the foreign foundation which are shown to be based on amounts already allocated pursuant to the first sentence. (11) For the benefit of the foreign family foundation, persons within the meaning of paragraph 1 shall be subject to the assistance of the foreign family foundation. not taxation, to the extent that the income on which the benefits are based demonstrably have already been attributed to the provisions of paragraph 1.

Footnote

(+ + + § 15: For application, see Section 21 (18), 21 (21) + + +)

Sixth Part
Identification and procedures

Unofficial table of contents

§ 16 obligation of the taxpayer to comply with the obligation

(1) A taxable person shall apply for business relations with a foreign company or a person or person based abroad who is resident in a foreign country with the income in connection with the business relationship to the taxable person, is not taxed, or is taxed only insignificantly, the removal of debts or other burdens or of operating expenses or advertising costs, such is only then within the meaning of § 160 of the tax order of the creditors or recipients exactly where the taxable person is to disclose all the relationships that (2) The taxable person is responsible for the accuracy and completeness of his information and of the claim that he/she is the person who has been informed of the facts and are not known at the request of the financial office, in accordance with Article 95 of the Tax Code, to take out insurance in lieu of the Eides. Unofficial table of contents

Section 17 Statement of the facts

(1) For the purposes of applying the provisions of § § 5 and 7 to 15, taxable persons shall provide the necessary information for themselves and in cooperation with other persons. On request, in particular:
1.
disclose the business relationships that exist between the company and such an unrestricted taxable person, or any person close to such a person as referred to in Article 1 (2),
2.
to submit relevant documents, including balance sheets and statements of success, for the purposes of the application of § § 7 to 14. On request, these documents shall be submitted to a certified public accounting office or comparable body with the examination note prescribed or customary in the State of the management or of the place of business.
(2) Where an estimate in accordance with section 162 of the tax code is to be made for the determination of the income for which a foreign company is an intermediate company, there is no other appropriate indication in the estimation of the income as a reference point of at least 20 per cent of the common value of the shares held by the unrestricted taxable persons; interest and rates of use paid by the company to the unrestricted taxable persons for the non-taxable goods; , Unofficial table of contents

Section 18 Separate determination of tax bases

(1) The tax bases for the application of § § 7 to 14 and § 3 No. 41 of the Income Tax Act shall be determined separately. Where a number of unrestricted taxable persons are involved in the foreign company, the separate determination shall be made to them in a uniform manner, including the way in which the tax bases are applied to each of the individual taxable persons. Distribute the participants. The provisions of the Tax Code, with the exception of § 180 (3), and the Financial Court Rules on the separate determination of tax bases, must be applied accordingly. (2) The tax office is responsible for the separate determination. where the unlimited taxable person is responsible for the determination of the income derived from the participation. If the separate determination is to be carried out in a uniform manner with respect to a number of persons, the tax office shall be responsible, which shall be responsible for the person concerned in accordance with the first sentence, to which the highest participation in the foreign company shall be attributed. If the competent tax office cannot be determined in accordance with the first and second sentences, the tax office shall be responsible for dealing with the case first. (3) Each of the unrestricted taxable persons involved in the foreign company shall be extended and extended restricts taxable persons to make a declaration for a separate determination; this shall also apply if, pursuant to section 8 (2), it is asserted that an additional invoice is not required. This obligation may be fulfilled by the issuing of a joint declaration. The declaration must be signed by the taxable person or by the persons referred to in § 34 of the German Tax Code. (4) The provisions of paragraphs 1 to 3 shall apply to income and property within the meaning of § 15.

Footnote

(+ + + § 18 (3): For application, see Section 20 (5) F. from 1984-12-14 and Section 21 (5) F. from 1992-02-25 + + +)
(+ + + § 18 (3): For the first application, see Section 21 (17) + + +)
(+ + + § 18 (4): For the first application, see Section 21 (17), 21 (21) + + +)

Seventh Part
Final provisions

Unofficial table of contents

§ 19 (omitted)

- Unofficial table of contents

Section 20 Provisions relating to the application of agreements to avoid double taxation

(1) The provisions of § § 7 to 18 and paragraphs 2 and 3 shall not be affected by the agreements to avoid double taxation. (2) Fallen income in the foreign establishment of an unrestricted taxable person on and would be the Notwithstanding section 8 (2) as an intermediate income, if that establishment is a foreign company, the double taxation is not by exemption, but by taking into account the amount of the income collected on these income to avoid foreign taxes. This does not apply to the extent to which income is incurred in the foreign permanent establishment, which would be liable to tax as intermediate income pursuant to Article 8 (1) (5) (a). (3) (omitted)

Footnote

(+ + + § 20: For application, see § 21 + + +) Unofficial table of contents

Section 21 Application requirements

(1) The provisions of this Act shall apply as follows in the following paragraphs, except as follows:
1.
for the income tax and the corporation tax for the first time for the period of assessment in 1972;
2.
for the first time for the 1972 survey period;
3.
(dropped)
4.
for the inheritance tax on acquisitions in which the tax liability arose after the entry into force of this Act.
(2) The application of § § 2 to 5 shall not be affected by the fact that the unrestricted tax liability of the natural person has already ended before 1 January 1972. (3) As far as the application of § 10 paragraph 3 of the economic goods is to be assessed for the first time, they shall be with the values which would arise if the provisions of German tax law had been applied since the takeover of the economic goods by the foreign company. (4) § 13 para. 2 no. 2 is to be applied for the first time
1.
for the corporate income tax for the 1984 investment period;
2.
for the business tax for the survey period 1984.
1 (1) (1) (b) and 2 (2), as amended by Article 17 of the Law of 25 February 1992 (BGBl). I p. 297) shall be applied for the first time:
1.
for the income tax and the corporation tax for the 1992 assessment period;
2.
for the industrial tax for the 1992 survey period.
(5) Paragraph 18 (3) shall also apply for assessment periods and survey periods before 1985, if the declarations are not yet made. (6) For the purposes of the application of § § 2 to 6 for the period after 31 December 1990, the unrestricted Tax liability in accordance with § 1 para. 1 sentence 1 of the Income Tax Act the unrestricted tax liability according to § 1 paragraph 1 of the German Income Tax Act of the German Democratic Republic as amended on 18 September 1970 (Special Pressure No. 670 of the German Democratic Republic Act) Legal Gazette). The application of § § 2 to 5 is not affected by the fact that the unrestricted tax liability of the natural persons has already ended before 1 January 1991. (7) § 7 para. 6, § 10 para. 6, § 11 para. 4 sentence 1, § 14 para. 4 sentence 5 and § 20 para. 2 in Connection with Section 10 (6) in the version of Article 12 of the Law of 21 December 1993 (BGBl. 2310) to be applied for the first time
1.
for the income and corporate income tax for the investment period,
2.
with the exception of section 20 (2) and (3) for the trade tax, for which the part of the amount of the financial contribution, which is based on the income with a capital investment character within the meaning of Article 10 (6) sentence 3, remains out of stock, for the collection period,
for the intermediate income with a capital investment character within the meaning of Article 10 (6), second sentence, and (3), which have arisen in an economic year of the intermediate company or establishment, which begins after 31 December 1993. Section 6 (1), as amended by Article 5 of the Law of 20 December 2001 (BGBl. 3858) shall be applied for the first time if, at the time of the termination of the unrestricted tax liability, it would be applicable to divestments within the meaning of Section 17 of the Income Tax Act § 3 No. 40 (c) of the Income Tax Act. Section 7 (6) in the version of Article 5 of the Law of 20 December 2001 (BGBl. I p. 3858) for the first time
1.
for the income and corporate income tax for the investment period,
2.
for the business tax for the survey period,
for the intermediate income which has arisen during an economic year of the intermediate company, which starts after 15 August 2001. Section 12 (2) in the version of Article 12 of the Law of 23. October 2000 (BGBl. No. 8 and 9 and Section 3, § 9, Section 10 (2), 3, 6, 7, § 11, § 12 (1), § 14 and § 20 (2), as amended by Article 5 of the Law of 20 December 2001 (BGBl. 3858) to be applied for the first time
1.
for the income and corporate income tax for the investment period,
2.
for the business tax for the survey period,
for the intermediate income which has arisen during an economic year of the intermediate company or the establishment which begins after 31 December 2000. Section 12 (3), Section 18 (1), as amended by Article 5 of the Law of 20 December 2001 (BGBl. 3858) shall be applied for the first time if, in the version of Article 1 of the Law of 20 December 2001 (BGBl I, p. 41 of the Law on Income Tax Act), Section 3 No. 41 of the Income Tax Act (Einkommensteuergesetz). 3858). Section 8 (2) in the version of Article 6 of the Law of 6 September 1976 (BGBl. 2641), § 13, as amended by Article 17 of the Law of 25 February 1992 (BGBl I). I p. 297) are to be applied last time
1.
for the income and corporate income tax for the investment period,
2.
for the business tax for the survey period,
for the intermediate income which has arisen during an economic year of the intermediate company, which commends before 1 January 2001. § 11 in the version of Article 12 of the Law of 21 December 1993 (BGBl. 2310) shall not apply to profit distributions of the intermediary company or to profits arising from the sale of the shares in the intermediary company, if the distributions or profits arising from the disposal of the intermediary company are subject to § 8b (1) or (2) of the Corporation tax law in the version of Article 3 of the Law of 23. October 2000 (BGBl. 1433) or § 3 No. 41 of the Income Tax Act, as amended by Article 1 of the Law of 20 December 2001 (BGBl. § 6 (3) (4), as amended by the Law of 21 December 1993 (BGBl.). 2310), to apply for the first time to applications which, after 31 December 1991, apply for the first time to applications made before 1 January 1999. (9) § 8 (1) (7) and (10) (3) sentence 6, as amended by Article 7 of the Law of 13 September 1993 (BGBl. I p. 1569) shall apply for the first time
1.
for income tax and corporate income tax for the assessment period,
2.
for the business tax for the survey period,
for the intermediate income which has arisen during an economic year of the intermediate company, which shall start after 31 December 1991. Section 10 (3) sentence 1 in the version of this Act shall be applied for the first time
1.
for income tax and corporate income tax for the assessment period,
2.
for the business tax for the survey period,
(10) § 2 (1) sentence 2, (2) (1) and (3) (3) (2) and (3) are to be added to the interim income which has arisen after 31 December 1993. (10) Law of 19 December 2000 (BGBl. 1790) for the first time for the 2002 allocation period. § 7 para. 6 sentence 2, § 9 and § 10 paragraph 6 sentence 1 are in the version of Article 9 of the Law of 19 December 2000 (BGBl. I p. 1790) for the first time
1.
for the income tax and the corporation tax for the assessment period,
2.
for the business tax for the survey period,
(11) § 1 (4), as amended by Article 11 of the Law of 16 May 2003 (BGBl.). 660) shall be applied for the first time for the 2003 assessment period. § 7 (6) and (6a), Section 8 (1) (9), § § 10, 11, 14, 20 (2), as amended by Article 11 of the Law of 16 May 2003 (BGBl. 660), § 7 (7), § 8 (1) (4) and 14 (1), as amended by Article 5 of the Law of 22 December 2003 (BGBl). 2840) to be applied for the first time
1.
for the income and corporate income tax for the investment period,
2.
for the business tax for the survey period,
for the intermediate income or incurred in a permanent establishment which has arisen during an economic year of the intermediate company or establishment which begins after 31 December 2002. (12) § 10 para. 3 in the first subparagraph of Article 10 (1). Article 11 of the Law of 9 December 2004 (BGBl), as amended in January 2004, Section 7 (7) of the Law of 9 December 2004 (BGBl). I p. 3310) shall apply for the first time
1.
for the income and corporate income tax for the investment period,
2.
for the business tax for the survey period,
for the intermediate income or incurred in a permanent establishment which has arisen during an economic year of the intermediate company or establishment which begins after 31 December 2003. (13) § 6 (1) in the version of the Article 7 of the Law of 7 December 2006 (BGBl. 2782) shall be applied for the first time for the 2007 assessment period. Section 6 (2) to (7) in the version of the Law of 7 December 2006 (BGBl. 2782) shall apply in all cases in which the income tax is not yet legally established. (14) § 8 (1) No. 10 and § 10 (3) sentence 4 in the version of Article 7 of the Law of 7 December 2006 (BGBl. I p. 2782) for the first time
1.
for the income and corporate income tax for the investment period,
2.
for the business tax for the survey period,
for the intermediate income or incurred in a permanent establishment which has arisen during an economic year of the intermediate company or the permanent establishment which begins after 31 December 2005. (15) § 7 (8), § 8 (1) (9), Section 11 (1) and section 14 (2), as amended by Article 3 of the Law of 28 May 2007 (BGBl. I p. 914) shall apply for the first time to:
1.
the income and corporate income tax for the investment period; and
2.
the trade tax for the survey period;
for the intermediate income which has arisen in an economic year of the intermediate company or establishment which starts after 31 December 2006. (16) § 1 (1), 3 sentence 1 to 8 and the sentences 11 to 13, and paragraph 4 in the Version of Article 7 of the Law of 14 August 2007 (BGBl. 1912) and § 1 (3) sentences 9 and 10, as amended by Article 11 of the Law of 8 April 2010 (BGBl. (17) § 7 (6) sentence 2, § 8 para. 2 and 3, § § 9, 10 para. 2 sentence 3, § 18 para. 3 sentence 1 and § 20 paragraph 2 in the version of Article 24 of the Law of 20 December 2007 (BGBl. I p. 3150) shall apply for the first time
1.
for the income and corporate income tax for the investment period,
2.
for the business tax for the survey period,
for the intermediate income which has arisen during an economic year of the intermediate company or the permanent establishment which starts after 31 December 2007. Section 8 (1) No. 9 in the version of Article 24 of the Law of 20 December 2007 (BGBl. I p. 3150) shall apply for the first time
1.
for the income and corporate income tax for the investment period,
2.
for the business tax for the survey period,
for the intermediate income which has arisen during an economic year of the intermediate company or the establishment which begins after 31 December 2006. § 12 (3) sentence 1, as amended by Article 24 of the Law of 20 December 2007 (BGBl. I p. 3150) shall be applied for the first time for periods for which Article 12 (3) is to be applied for the first time in the version in force on 25 December 2001. Section 14 (1) sentence 1, as amended by Article 24 of the Law of 20 December 2007 (BGBl. I p. 3150) shall apply for the first time
1.
for the income and corporate income tax for the investment period,
2.
for the business tax for the survey period,
for the intermediate income which has arisen during an economic year of the intermediate company or the establishment which begins after 31 December 2005. Section 18 (4) of the version in force on 29 December 2007 applies for the income and corporate income tax for the first time in 2008. (18) § 2 (1) and (5) and § 15 (6) in the version of Article 9 of the Act of 19. December 2008 (BGBl. 2794) for income and corporate income tax for the first time for the 2009 investment period. Section 15 (7) in the version of Article 9 of the Law of 19 December 2008 (BGBl. 2794) shall apply in all cases where income tax and corporation tax are not yet established. (19) § 8 (3) and § 10 (1) sentence 3, as amended by Article 7 of the Law of 8 December 2010 (BGBl. I p. 1768) for the first time
1.
for the income and corporate income tax for the investment period,
2.
for the business taxes for the survey period,
for the intermediate income which has arisen during an economic year of the intermediate company or the establishment which begins after 31 December 2010. Section 20, paragraph 2, as amended by Article 7 of the Law of 8 December 2010 (BGBl. 1768) shall apply in all cases where the income tax is not yet established. (20) § 1 (1) sentence 2, first half-sentence, and paragraphs 3 and 6 in the version of Article 6 of the Law of 26 June 2013 (BGBl. I p. 1809) is to be applied for the first time for the 2013 assessment period. Section 1 (1), second sentence, second half-sentence in the version of Article 6 of the Law of 26 June 2013 (BGBl. I p. 1809) shall apply to all predisposition which has not yet been passed. § 1 (4) and (5) in the version of Article 6 of the Law of 26 June 2013 (BGBl. I p. 1809) shall be applied for the first time for marketing years beginning after 31 December 2012. (21) § 2 (5), as amended by Article 6 of the Law of 26 June 2013 (BGBl. I p. 1809) is to be applied for the first time for the 2013 assessment period. On request, § 2 (5) sentences 1 and 3, as amended by Article 6 of the Law of 26 June 2013 (BGBl. 1809), to be applied already in respect of investment periods before 2013, and to repeal or amend existing tax arreits. Section 8, paragraph 2, as amended by Article 6 of the Law of 26 June 2013 (BGBl. I p. 1809) for the first time
1.
for the income and corporate income tax for the investment period,
2.
for the business tax for the survey period,
for the intermediate income which has arisen during an economic year of the intermediate company or the permanent establishment which starts after 31 December 2012. § 15 (1), 5 to 11, and § 18 (4) are in the version of Article 6 of the Law of 26 June 2013 (BGBl. (22) § 1 (4) in the version in force on 31 December 2014 applies for the first time for the period of assessment 2015. (23) § 6 (5) sentence 3 in the version in force on 31 December 2014, apply in all cases where the tax due is not yet paid. Unofficial table of contents

§ 22 Recast of the Law

The Federal Ministry of Finance can make known the wording of this law in the version in force in the Federal Law Gazans.