Germany - Federal Tax Court Reaffirms the Limits of Taxing Businesses upon Their Ultimate Exit from Germany
- U. Andresen
- International Transfer Pricing Journal, 2010 (Volume 17), No 3
- 15 April 2010
This article explores two recent judgements of the Federal Tax Court in which the court reaffirmed the limits on exit taxation in cases where the applicable income tax treaty does not prevent the German tax authorities from executing their right to tax income that originated in Germany even though such income – at a later point in time – is only realized in a tax-exempt foreign permanent establishment or by a person that is no longer subject to either resident taxation or taxation at source in Germany.