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Federal Constitutional Court rejects complaint against trade tax addback

Global Tax Update:May 2016/Germany

In a decision dated 15 February 2016 (1 BvL 8/12), Germany’s Federal Constitutional Court refused to rule on an issue submitted by the tax court of Hamburg relating to the constitutionality of the trade tax addback for interest expense, rent and lease payments. (Global Tax Update:May 2016/Germany)

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In a decision dated 15 February 2016 (1 BvL 8/12), Germany’s Federal Constitutional Court refused to rule on an issue submitted by the tax court of Hamburg relating to the constitutionality of the trade tax addback for interest expense, rent and lease payments.

The amended Trade Tax Act that applies as from 2008 requires a (partial) imputation of expenses, i.e. interest expense, rent and lease payments for the use of movable and immovable property owned by another party must be added back to the trade tax base, on which trade tax will be due.


>> Click for Japanese [ドイツ連邦憲法裁判所が営業税の加算に係る申立てを棄却]

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