Applications for relief based on an alleged infringement of the freedom of capital movement (Art. 63 TFEU)
Certain foreign dividend recipients are not covered by the refund procedure pursuant to Section 32(5) of the German Corporation Tax Act (KStG). These taxpayers are applying for relief from the remaining capital yield tax and are invoking an alleged infringement of the freedom of capital movement (Art. 63 TFEU).
The Act to modernize withholding tax relief transferred the responsibility for processing these applications from the federal states to the Federal Central Tax Office (BZSt) with effect from June 9, 2021. Applications previously filed with the tax offices are being taken over by the BZSt, they do not have to be submitted again.
A flat-rate refund of the capital yield tax will not be made. Rather, each case has to be examined individually to see whether a claim for refund exists in accordance with the national provisions on taxation.
Regulations
Questions and Answer
Who is responsible for applications based on an alleged infringement of the freedom of capital movement in accordance with Art. 63 TFEU?
The Federal Central Tax Office (BZSt) is responsible for applications based on an alleged infringement of the freedom of capital movement pursuant to Art. 63 TFEU (cf. Section 5(1) sentence 1 no. 2 of the Tax Administration Act (FVG)).
What time limits for applications and assessments apply for applications based on an alleged infringement of the freedom of capital movement?
The general time limits for assessment under the Fiscal Code (AO) apply.
Are the application forms for applications based on an alleged infringement of the freedom of capital movement pursuant to Art. 63 TFEU?
No, there are no applications forms.
Is it necessary to submit two applications if the refunds pursuant to Section 50c and Section 44a (9) of the German Income Tax Act (EStG) and an alleged infringement of the freedom of capital movement are applied for at the same time?
This involves different procedures, meaning that a separate application has to be filed in each case. Mutual details (application date, registration number) from the other application would be helpful.
Original tax certificates and dividend credit advices have already been submitted in the refund procedure pursuant to Section 50c EStG. It is now no longer possible to submit originals of these documents for applications pursuant to Art. 63 TFEU.
The applications pursuant to Section 50c EStG and Art. 63 TFEU constitute two procedures that are independent of each other. If the certificates have been submitted as part of the refund procedure pursuant to Section 50c EStG, reference should be made to other applications by specifying the corresponding registration number and application date.
Contact
Federal Central Tax Office
Department St I B 4
An der Küppe 1
53225 Bonn
Jurisdiction:
capital income tax
