At the beginning of 2020, US public auditors have identified a regulation governing German non-resident tax liability of IP income. The regulation has existed for almost 100 years but was – so far – neither considered by German tax practitioners nor tax authorities.
The German Ministry of Finance did not address the topic until November 2020 in which it published a circular stating that the mere German registration is a sufficient nexus for taxable income. To everyone’s surprise, the German Ministry of Finance published a draft legislature just two weeks after in which it proposes a retroactive repeal of the regulation, leaving German tax practitioners in an unclear situation.
In this webinar, Taxand Germany presented an overview on recent developments of German taxation of IP income and provide guidelines on how to deal with the current situation.