Apply for a separate determination on the tax repayment of deposits under the Corporate Income Tax Act
Description
In principle, foreign companies are not obliged to maintain a tax deposit account. However, corporations and associations of persons from EU/EEA member states with domestic shareholders can apply for a separate determination of a non-taxable repayment of contributions.
The subject of the determination are all services provided by the applicant from his fictitious tax deposit account.
When submitting the application, not only the deposits and benefits of domestic shareholders must be disclosed, but in principle all deposits and benefits. The burden of proof begins from the date on which deposits have been made, the repayment of which is claimed.
The application must be submitted in writing with an officially prescribed form to the tax authority that is locally responsible for taxing the applicant's income at the time the application is submitted. If no tax authority is locally competent at the time of application, the application must be submitted to the Federal Central Tax Office (BZSt).
Important note:
As of the 2018 assessment period, foreign investment funds that make payments to their domestic shareholders in accordance with Sections 16 and 34 of the Investment Tax Act 2018 (InvStG) will no longer be able to apply for a separate determination of a tax refund of contributions under the Corporate Income Tax Act.
Applications for tax repayment of deposits can be submitted:
- Foreign
- Corporations or
- Associations of persons
- from another member state of the European Union or a state of the European Economic Area (EEA), which is located in the other country
- are subject to unlimited tax liability, and
- Benefits within the meaning of Section 20 (1) No. 1 or 9 of the Income Tax Act (EStG)
can grant
When applying for the return of deposits, you must submit:
- Certificate from the foreign tax authority on the applicant's unlimited tax liability for the requested period
- Information on the applicant's limited corporate income tax liability in Germany, stating assets and activities in Germany for the purpose of examining the competent authority in accordance with Section 27 (8) sentences 5 and 6 of the Corporate Income Tax Act (KStG)
- Current excerpt from the commercial register
- a company overview showing how the individual companies came into being and how they were connected to each other: the overview must show how long the individual companies have existed (for example, in the form of an organizational chart)
- Amount of the domestic shareholder's share
- If applicable, power of attorney according to § 80 of the German Fiscal Code (AO) and power of attorney to receive
- own development of the various components of equity capital from the date on which contributions have been made the repayment of which is claimed, at the earliest since 1 January 1977
- a determination of the repayment of deposits
- Annual financial statements with reconciliation accounts into German tax law in analogous application of § 60 of the Income Tax Implementation Ordinance (EStDV) from the period from which deposits were made, the repayment of which is claimed, at the earliest since 1 January 2006
- Decisions and evidence on the actual implementation of
- Deposits for which repayment is claimed since 1 January 1977 at the earliest
- Benefits for the requested assessment period
- Changes in nominal capital from the period from which contributions for which repayment is claimed have been made, at the earliest since 1 January 1977
- Conversions from the period from which deposits have been made the repayment of which is claimed, at the earliest since 1 January 1977
Notes:
- You must prove the amount and actual execution of the cash deposits and cash payments by submitting bank statements (bank receipts from which the payer and payee can be seen).
- In the case of contributions in kind and contributions in kind, you must provide proof by submitting contractual documents (e.g. transfer, loan or merger agreement) and accounting statements.
- In order to determine the value of contributions in kind and benefits in kind (shares, receivables or other assets), you must provide evidence, for example in the form of a valuation report.
- Unproven deposits and benefits cannot be taken into account.
Application: by 31/12 of the calendar year following the calendar year in which the benefit was provided
for the processing of the application: approx. 16 months upon submission of the complete documentation
- Objection
- Fiscal court action
- Forms: yes
- Online procedure possible: no
- Written form required: yes (signed application)
- Personal appearance: no
You must submit the application for a separate determination of a tax repayment of deposits in writing with an officially prescribed form to the locally competent tax authority or to the Federal Central Tax Office (BZSt).
Variant 1: You must submit the application in writing to the tax authority that is locally responsible for the taxation of income at the time of application.
Variant 2: If no tax authority is responsible at the time of application, you must submit the application in writing to the Federal Central Tax Office (BZSt).
- Download and fill out the application form from the Online Form Management System (FMS) of the Federal Finance Administration (BFINV).
- Print out the completed application form. The application form must then be submitted by
- a legal representative of the company, or
- whose proxy must be signed.
- Send the signed application form together with the other required documents by post to
- Your local tax authority (variant 1) or
- the headquarters of the Federal Central Tax Office (BZSt) in Berlin (variant 2).
- The local tax authority (variant 1) or the BZSt (variant 2) will examine your application. You may have to answer further questions or submit additional documents.
- If your application is approved, send you
- the competent local tax authority (variant 1) or
- the Federal Central Tax Office (variant 2)
a notice of the separate determination of tax bases in accordance with Section 27 (8) sentence 3 KStG by post to the address given in the application form.
- In the event of a rejection, you will receive a rejection notice by post.
Section 27 (8) KStG
Federal Ministry of Finance (BMF)
The text was automatically translated based on the German content.
