Germany - Germany: Federal Tax Court Closes Loophole in Germany–Luxembourg Tax Treaty
- Andreas Perdelwitz
- European Taxation, 2009 (Volume 49), No 3
- 1 March 2009
In its decision of 4 July 2008, the Federal Tax Court (Bundesfinanzhof, BFH) held that the income of a German limited liability company derived from a participation as a typical silent partner of a Luxembourg company is not exempt in Germany in accordance with the Germany–Luxembourg tax treaty. In this note, the author considers the Federal Tax Court’s decision.