Eversheds Sutherland (US) LLP
German withholding tax on royalty payments between non-German parties - German tax authorities confirm position on withholding obligation and set out procedural guidelines for compliance
On February 11, 2021, the German Federal Ministry of Finance (GFMF) published a decree (the Decree), confirming their position that German withholding tax (at a rate of 15.825%) is due and payable on gross royalties that are payable or that have been paid to a non-German tax resident recipient, even if: ..The licensee is not tax resident in Germany, and ..The only nexus...
Trend reversed – No German royalty withholding tax on online advertising services
After German tax authorities in the state of Bavaria and others had begun to order some German companies, as part of ongoing audit procedures, to retroactively pay German withholding tax at a rate of 15% on payments to non-German online advertising providers, see the Eversheds Sutherland article on German Digital Ad Tax May Be A Concerning New Trend (published in Law360 on March 4, 2019), the...
A (new) German digital advertisement tax? German tax authorities start to impose withholding tax on cross-border online advertising
German tax authorities have started utilizing existing income tax rules to impose royalty withholding tax on cross-border digital advertising services. According to news reports, tax authorities in one of the largest German states have ordered some German companies, situated in this state, to retroactively pay German withholding tax at a rate of 15% on payments to non-German online advertising...