In addition to double taxation agreements on income and capital taxes, there are also special double taxation agreements for inheritance and gift taxes as well as vehicle tax. There are also agreements for legal assistance, administrative assistance and information exchange. The exchange of information between tax authorities is particularly important for the detection and fight against tax evasion and evasion and to ensure good taxation. An intercompany tax allowance agreement is a contractual agreement on the calculation of income tax (current and latent), payment of income tax and refunds to an institution when it has a loss of tax. A holding company and its subsidiary (s) are invited to enter into a comprehensive and written tax allowance agreement, adapted to its particular circumstances. The agreement should be approved by the relevant boards of directors and regularly reviewed and updated by legal advisors. Subjects who believe that their imposition is contrary to a DBA or the European Arbitration Convention may request a procedure of mutual agreement. In Germany, the Bundeszentralamt for Steuern (BZSt) is responsible for the implementation of these procedures. Applications for mutual agreement proceedings can therefore be filed directly with the BZSt.
As a general rule, non-German resident applicants must submit these applications to the competent authority of their country of residence. Principles governing the review of income distribution among close persons with cross-border trade relations with respect to the obligation to investigate and cooperate, Corrections and Mutual Agreement and EU Arbitration For U.S. subjects, the CARES Act1 has created a valuable new tax value – the ability to deal with net operating losses (NOLs) for five years2 A company`s access to this asset may, however, depend on its participation or distribution agreements Tax. To solve these problems, companies often enter ASD, which indicate which companies are entitled to specific services and which companies are responsible for certain costs. In general, these agreements can take a number of forms. For example, there are ASDs that set up many consolidated groups to regulate the economic sharing of tax attributes and other tax-related elements during the group`s existence. There are also tax allocation provisions in share purchase or merger agreements. And there are self-sustaining tax-sharing agreements that were negotiated at the time of separation or other corporate separation. The Federal Department of Finance assumes no responsibility for errors or omissions in the texts of the contract made available here.
The officially published versions in the Bundesgesetzblatt are still the relevant texts.