The limited tax liability on the licensing or sale of rights entered in a domestic public book or register will be abolished retrospectively. This is a further building block of the Annual Tax Act 2022 announced on December 20, 2022. The limited tax liability of rights registered in Germany, the so-called register cases, has occupied internationally active groups of companies intensively in the past two years, since taxpayers who are not resident in Germany also have a could have liability. However, the law still provides for exceptions for tax havens.<\/p>\n
This exception relates to uncooperative tax jurisdictions. If the licensor or seller of rights resides in such a tax haven, the remuneration should continue to be subject to limited tax liability. Potential tax havens are included in the so-called EU blacklist.<\/p>\n
The law aims to ensure that income generated from ship register rights entered in a domestic ship register will continue to be covered by German tax liability. The same applies to hereditary building and mineral extraction rights. On the other hand, the taxation of third-party licenses will be abolished retrospectively.<\/p>\n
If you have further questions about the tax liability for register cases, please contact the experts at the Altehoefer law firm for international tax advice.<\/p>\n