Germany releases draft of German-registered IP tax bill


The German Ministry of Finance (MoF) recently published a draft bill proposing changes to various international tax rules. One important proposal involves the taxation of payments for German-registered rights. The draft bill proposes to eliminate the nonresident taxation of royalty income and capital gains relating to rights solely because these rights are German-registered. This follows the recently extended relief deadline for licensors. For additional information, see Warth & Klein Grant Thornton’s prior story, “Further updates on Royalty taxation of IP registered in Germany.


Generally, the proposed modifications concern the elimination of taxation concerning income related to German-registered rights would apply as of Jan. 1, 2023. For royalties and capital gains between third-parties, the proposed rules if enacted would be retroactive to open cases and generally should not be taxable. There are other effective dates for payments involving tax favored jurisdictions. For more details, see Warth & Klein Grant Thornton’s prior story, “Draft law on Royalty taxation of IP registered in Germany.”




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