Corporate income tax; application for a separate determination on the return of capital contributions for tax purposes

If foreign companies from the EU or the EEA make repayments or payments from contributions to German shareholders, they can file an application for separate determination of a return of contributions for tax purposes in favor of their shareholders.

Description

Prerequisites

Applications for the return of contributions for tax purposes may be submitted by:

  • foreign
    • Corporations or
    • associations of persons
  • from another Member State of the European Union or a State of the European Economic Area (EEA), who are resident in the other State
    • are subject to unlimited tax liability and
    • can grant benefits within the meaning of Section 20 (1) No. 1 or 9 of the German Income Tax Act (EStG)

can grant

Procedure

You must submit the application for separate determination of a tax return of capital contributions in writing using the officially prescribed form to the locally competent tax authority or to the Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt).

Variant 1: You must submit the application in writing to the tax authority that is locally responsible for taxing the income at the time the application is submitted.
Variant 2: If no tax authority is responsible at the time of application, you must submit the application in writing to the Federal Central Tax Office (BZSt).

  • Download the application form from the Online Form Management System (FMS) of the Federal Tax Administration (BFINV) and fill it out.
  • Print out the completed application form. The application form must then be returned by
    • signed by a legal representative of the company or
    • his authorized representative.
  • Send the signed application form together with the other required documents by mail to
    • your local tax authority(variant 1) or
    • the office of the Federal Central Tax Office (BZSt) in Berlin(variant 2).
  • The locally competent tax authority(variant 1) or the BZSt(variant 2) will check your application. You may have to answer further questions or submit additional documents.
  • If your application is approved, we will send you
    • the competent local tax authority(variant 1) or
    • the Federal Central Tax Office (variant2)

a notice on the separate determination of tax bases pursuant to Sec. 27 (8) Sentence 3 KStG by mail to the address specified in the application form.

  • In case of rejection, you will receive a rejection notice by mail.

Deadlines

Application: by 31.12. of the calendar year following the calendar year in which the service was provided

Processing time

for processing the application: approximately 16 months upon submission of complete documentation

Required documents

  • Required Documents

    When applying for the return of deposits, you must submit:

    • Certificate from the foreign tax authority stating that the applicant has unlimited tax liability for the period applied for
    • Information on the applicant's limited corporate tax liability in Germany, naming assets and activities in Germany, for examination by the competent authority in accordance with Section 27 (8) sentences 5 and 6 of the German Corporate Income Tax Act (KStG)
    • current excerpt from the commercial register
    • a company overview showing how the individual companies came into being and how they are connected with each other: the overview must show how long the individual companies have existed (for example, in the form of an organizational chart)
    • the amount of the share held by the domestic shareholder
    • if applicable, power of representation according to § 80 of the German Fiscal Code (AO) and power of receipt
    • own development of the various components of equity from the time when contributions were made, the repayment of which is claimed, at the earliest since 1.1.1977
    • a determination of the return of contributions
    • annual financial statements with reconciliation statements to German tax law in analogous application of § 60 of the Income Tax Implementing Regulation (EStDV) from the period in which contributions were made whose repayment is claimed, at the earliest since January 1, 2006
    • Resolutions and evidence of the actual implementation of
      • Contributions, the repayment of which is claimed, at the earliest since 1.1.1977
      • Benefits for the requested assessment period
      • Changes in the nominal capital from the period from which contributions were made, the repayment of which is claimed, at the earliest since 1.1.1977
      • Conversions as of the period from which contributions were made, the repayment of which is claimed, no earlier than 1/1/1977

    Notes:

    • You must prove the amount and actual execution of cash contributions and cash benefits by submitting bank statements (bank records showing the payer and payee).
    • In the case of contributions in kind and contributions in kind, you must provide evidence by submitting contractual documents (for example, transfer, loan or merger agreement) and accounting records.
    • To determine the value of contributions in kind (shares, receivables or other assets), you must provide evidence, for example in the form of a valuation report.
    • Contributions and benefits that have not been proven cannot be taken into account.

  • Forms on the website of the Federal Central Tax Office (BZSt) under "Required documents and calculations"

Fees

  • none

Remedy

  • Appeal
  • Tax court action

Status:06.08.2023

Responsible for editing:Bundesministerium der Finanzen

  • Online transactions, Bavaria-wide
  • Online transactions, locally limited
  • Form, Bavaria-wide
  • Form, locally limited
  • Prefillable Form, Bavaria-wide
  • Legal bases, Bavaria-wide
  • Legal bases, locally limited
  • Fees, Bavaria-wide
  • Fees, locally limited
Information

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