Law on tax measures in foreign investment in the German economy

Unofficial table of contents

AuslInvG

Date of completion: 18.08.1969

Full quote:

" Law on tax measures on foreign investment by the German economy of 18 August 1969 (BGBl. 1211, 1214), as last amended by Article 16 of the Law of 19 December 2008 (BGBl I). 2794).

Status:

Last amended by Art. 16 G v. 19.12.2008 I 2794

For more details, please refer to the menu under Notes

Footnote

(+ + + Text proof applicable: 30.12.1981 + + +) 
(+ + + For application cf.  § 8 + + +) 

  

The G was decided as Article 2 G 707-6-1-1 v. 18.8.1969 I 1211 (StÄndG 1969) by the Bundestag with the approval of the Bundesrat. It's gem. Art. 13 sentence 2 of this G entered into force on 22.8.1969. Unofficial table of contents

§ 1 Tax-free reserve on the transfer of certain economic goods to companies, companies or establishments abroad

(1) taxable persons who determine the profit in accordance with § 4 (1) or (5) of the Income Tax Act and in connection with investments within the meaning of paragraph 2 on the fixed assets of a domestic operating company into the In the marketing year of the transfer up to the extent of the profit resulting from the transfer, the company, the company or the establishment abroad may form a reserve which reduces the tax profit. The reserve shall be dissoled from the fifth marketing year following its formation to at least one-fifth of the annual economic year. (2) Investments abroad within the meaning of paragraph 1 are:

1.

the acquisition of holdings in capital companies with their registered office and management in a foreign country,

2.

Deposits in partnerships in a foreign country and

3.

the supply of operating assets to an establishment or establishment of the taxable person in a foreign country.

(3) The formation of the reserve referred to in paragraph 1 shall be excluded if the taxable person for the investment abroad takes advantage of the tax relief provided for in Article 3 of the Developing Countries Tax Act. (4) The investments referred to in the paragraph shall be excluded. 2 No 1, or transferred to private property, the reserve for the holding in the marketing year of the sale or transfer to the private property shall be proportional to the share of the person who has been sold or transferred to the private property. Participation in total participation within the meaning of paragraph 2, point 1, prematurely to be resolved in a way that is increasing. The same shall apply where, in the case of investments abroad within the meaning of paragraph 2 (2) and (3), the goods supplied are sold or transferred to the national or private property without the person holding company, the holding or the holding company or the private property being transferred to the country or to the private property. A place of business abroad until the end of the marketing year following the sale or transfer shall be supplied to a corresponding volume of spare assets. In the case of a conversion of a personal company, an establishment or an establishment abroad into a capital company as a result of the conditions in the foreign country, the premature increase in the profits of the reserve in the amount of the reserve is no longer necessary. the amount or part of the amount corresponding to the ratio between the taxable person's participation in that capital company and its share in the partnership, the holding or the establishment prior to the conversion. After the conversion, the sentences 1 and 2 shall apply in the appropriate way. If the company, company or establishment no longer fulfils the conditions laid down in § 5, the tax-free reserve shall be disburdened at the full rate. (5) The condition for the application of paragraphs 1 to 4 shall be that the Education and resolution of the reserve in the accounting system can be followed.

Footnote

(+ + + § 1 (3) sentences 1 and 1) 2: For use, see § 8 para. 3 F. from 1981-12-22 + + +) Unofficial table of contents

§ 2 Foreign losses in double taxation agreements

(1) According to an agreement to avoid double taxation in the case of an unrestricted taxable person from an establishment situated in a foreign country, income from a commercial activity is subject to income tax, or In the case of a taxable person, a loss arising under the provisions of the Income Tax Act and under the provisions of the Income Tax Act of the taxable person shall be exempted at the request of the taxable person. could be compensated or deducted if the income was not from the Income tax or corporation tax would be to be exempted from the determination of the total amount of the income to the extent that, under this Agreement, it would have to exempt positive income from industrial activity from others in that foreign country. State occupied premises exceed. In so far as the loss is not compensated, the conditions of § 10d of the Income Tax Act shall be subject to the loss of the loss. The amount deducted in accordance with the first sentence of this Agreement shall, in so far as one of the following periods of assessment be applied in respect of the income from industrial activity to be exempted under this Agreement from operations situated in that foreign country, total the positive amount is to be added in the assessment period concerned in the calculation of the total amount of the income. Sentence 3 shall not apply if the taxable person proves that, in accordance with the rules of the foreign State which apply to him, a deduction of losses in other years than the year of loss cannot be claimed in general. (2) If a person in charge of the tax is not subject to the a permanent establishment situated in a foreign country is converted into a capital company, the loss referred to in the first sentence of paragraph 1 and the loss referred to in the third sentence of paragraph 1 shall not have been added or added to that loss; in the assessment period of the conversion, in accordance with the third sentence of paragraph 1 to add to the total amount of revenue. Sentence 1 shall not apply if:

1.

in the case of the converted establishment, the conditions laid down in the fourth sentence of paragraph 1 have been fulfilled, or

2.

the taxable person proves that the capital company cannot claim a deduction of losses of the establishment in accordance with the rules applicable to them.

Footnote

(+ + + § 2 (1) sentence 3 and 4, para. 2: For application, see § 5 sentence 2 (F from 1999-03-24) + + +) Unofficial table of contents

§ 3 Tax-free reserve for losses of foreign subsidiaries

(1) Unrestricted taxable persons who determine the profit in accordance with § 4 (1) or § 5 of the Income Tax Law may, for losses incurred by a capital company with the head office and management in a foreign country, to whose nominal capital the Taxable persons at least 50 of the hundred, in the case of capital companies with registered office and management in developing countries within the meaning of § 6 of the developing countries-tax law at least 25 of the hundred, directly involved (foreign subsidiary), constitute a reserve which reduces the tax profit. The formation of the reserve shall be for the marketing year in which the taxable person acquires shares in the foreign capital company to an extent which, for the first time, results in the taxable person's participation in the volume referred to in the first sentence. , or-where the taxable person has already been involved in the volume referred to in the first sentence in the first sentence-in which he acquires further shares in that capital company, and in the following four marketing years: ; the newly acquired shares must be at least 5 per cent of the nominal capital of the foreign capital company. The reserve may be constituted for the marketing year of the taxable person in which the loss of the foreign subsidiary is incurred up to the level of the part of the loss, which is the ratio of the newly acquired shares to the nominal capital. of this company; it is to be reduced by the amount in which the taxable person carries out a partial depreciation in the marketing year of its formation on the newly acquired shares in the foreign subsidiary. The reserve may not exceed the amount with which the newly acquired shares are placed in the tax balance. (2) The condition for the formation of the reserve is that:

1.

the new share acquisition within the meaning of the second sentence of paragraph 1 took place after 31 December 1968;

2.

the loss of the foreign subsidiary is determined in accordance with rules which comply with the general German rules on the determination of profits; tax advantages are not to be taken into account in this connection,

3.

the conditions set out in point 2 and section 5 are satisfied by submitting relevant documents, in particular balance sheets and results, and any annual reports of the foreign subsidiary; on request, these documents shall be to present documents with the examination note prescribed or customary in the State of the management or of the place of business of an audit office recognised by the public authorities or a comparable body,

4.

the taxable person and the foreign subsidiary undertake to submit documents of the type referred to in point 3 also for the marketing years following the loss year, as long as a reserve within the meaning of paragraph 1 has been shown , the amount of the results of the operating results of the foreign subsidiary obtained during those marketing years shall be unquestionable from the documents, and

5.

the foreign subsidiary declares that it agrees with the issuing of information by the tax authorities of the State in which it has its registered office and management to the German tax authorities.

(3) The reserve is to be resolved in a way that is eroding.

1.

if the foreign subsidiary achieves a profit in a marketing year following the loss year,

in the amount of the part of the profit which corresponds to the ratio of the newly acquired shares within the meaning of the second sentence of paragraph 1 to the nominal capital of the foreign subsidiary, to the extent that it provides for the loss of the losses which have occurred in the formation of the reserve referred to in the third sentence of paragraph 1. the second half-sentence and the second sentence have not been taken into account, or exceed the amount of the resolution referred to in paragraph 2,

2.

if, in a marketing year following their formation, the newly acquired shares within the meaning of the second sentence of paragraph 1 shall be subject to a partial depreciation on the foreign subsidiary,

in the amount of the part-value depreciation,

3.

if the taxable person sells shares in the foreign subsidiary or is transferred to the private property,

at the level of the part of the reserve, which corresponds to the share of the shares sold or transferred to the private property in the newly acquired shares within the meaning of the second sentence of paragraph 1,

4.

if the verification obligations referred to in paragraph 2 (4) are not fulfilled,

in full height,

at the latest, however, at the end of the fifth marketing year following their formation. (4) § 1 (5) shall apply mutah.

Footnote

(+ + + § 3 para. 2 no. 2: For application see § 8 para. 3 F. from 1981-12-22 + + +) Unofficial table of contents

§ 4

- Unofficial table of contents

§ 5 Common requirements

The condition for the application of § § 1 to 3 is that the company, the company or the establishment abroad exclusively or almost exclusively the manufacture or supply of goods other than weapons, the extraction of natural resources as well as the effects of industrial services, in so far as they are not carried out in the establishment or operation of installations used for tourism or in the leasing and leasing of economic goods, including the omission of Rights, plans, patterns, procedures, experience and knowledge. In so far as the effects of industrial services on the operation of merchant ships or aircraft are in international traffic, the Federal Ministry of Transport, Building and Urban Development or the Federal Ministry for Transport, Research and Energy, or the This confirms the eligibility of transport policy.

Footnote

(+ + + § 5: For application, see § 8 para. 3 F. from 1981-12-22 + + +) Unofficial table of contents

§ 6 Trade tax

The provisions of § § 1, 3 and 4 shall also apply to the determination of the business order.

Footnote

§ 6: Formerly § 5 gem. Art. 33 No. 5 G v. 22.12.1981 I 1523 mWv 30.12.1981 italic print: See. Footnote to § 4 Unofficial table of contents

§ 7 Erauthorization

The Federal Minister of Finance is authorized to announce the text of this Act with a new date in the version in force, to amend the sequence of paragraphs and to remove the inconsistencies of the text. Unofficial table of contents

§ 8 Scope

(1) The above version of this Act shall apply for the first time in 1982, subject to paragraphs 2 and 3. (2) § 4 in the version of Article 2 of the Law of 18 August 1969 (BGBl. 1214) is to be applied to shares in corporations acquired before 1 January 1982. (3) § 5 in conjunction with § § 1 and 3 shall be applied for the first time for the marketing year beginning after 31 December 1981; Economic years beginning before 1 January 1982 are § 1 para. 3 sentence 1 and 2 as well as § 3 para. 2 No. 2 in the version of Article 2 of the Law of 18 August 1969 (BGBl. (4) Reaction in accordance with § § 1 and 3 may last for the marketing year ending before 1 January 1990. (5) § 2 shall be applied last time to losses of the investment period 1989. § 2 para. 1 sentence 3, 4 and para. 2 shall be applied further for assessment periods from 2009 onwards. Unofficial table of contents

§ 9 Application in the Land of Berlin

This law applies in accordance with the provisions of Section 12 (1) of the Third Transfer Act of 4 January 1952 (Federal Law Gazette). I p. 1) also in the Land of Berlin. Unofficial table of contents

Section 10 Entry into force

This law shall enter into force on the day after it is announced.