13.05.2019
Update on the planned obligation to disclose tax arrangements (DAC 6)

EU member states are obliged to implement the requirements for the mandatory disclosure of cross-border tax arrangements by the end of 2019 and these regulations will then have to be complied with as of 1.7.2020. The legal basis for this is the sixth amendment to the EU mutual assistance directive 2011/16/EU, which came into force on 25.6.2018 (“Directive on Administrative Cooperation“, or abbreviated to DAC 6). The Federal Ministry of Finance (Bundesministerium der Finanzen, BMF) presented a draft bill from 30.1.2019 that regulates the implementation of the EU Directive into German law. However, the bill goes beyond the regulatory content of the EU Directive because domestic tax arrangements would also fall under the disclosure requirement. In the following section we give an overview of the planned new regulations together with initial recommendations for action.

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13.05.2019
PKF Worldwide Tax Update

In this second quarterly issue for 2019, the PKF Worldwide Tax Update newsletter again brings together notable tax changes and amendments from around the world, with each followed by a PKF commentary which provides further insight and information on the matters discussed.

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12.05.2019
Income tax and VAT treatment of subsidies from a landlord for modifications made by a tenant

Granting rent-free periods is a popular means for inducing tenants to enter into contracts. The same applies to the granting of subsidies. Landlord subsidies should give tenants the option to make modifications in order to, e.g., adapt the sales area for the presentation of their products.

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11.05.2019
Double taxation in the case of atypical estate agent contracts

Intermediary services provided within the framework of a taxable atypical estate agent contract in accordance with Section 1(2) of the Real Estate Transfer Tax Act (Grunderwerbsteuergesetz, GrEStG) do not satisfy the conditions under Section 4 no. 9(a) of the VAT Act (Umsatzsteuergesetz, UStG) and are, therefore, also subject to a VAT liability. Double taxation of income with VAT and real estate transfer tax (RETT) is the consequence.

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10.05.2019
New standards for the protection of trade secrets

In order to implement the EU Trade Secrets Directive the German Bundesrat (upper house of German parliament) approved the Trade Secrets Act (Geschäftsgeheimnisgesetz, GeschGehG) on 12.4.2019; thus, the promulgation and the entry into force of the act will take place soon. The Act will be of great importance for enterprises that gain advantages over their competitors in the market on the basis of specific technical or commercial knowledge and thus rely on the protection of these business and trade secrets. In order to obtain protection under GeschGehG the enterprises will have to comply with considerably more stringent requirements. Furthermore, deciphering trade secrets – so-called reverse engineering – from products has been declared admissible for the first time.

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