Sale of dividend claims to third parties by non-resident taxpayers

more+
less-

Federal Ministry of Finance: If the capital gain is not taxable in Germany,

the correspondent dividends are taxed.

With its circular letter dated 26 July 2013, the Federal Ministry of Finance comments on the tax consequences of a sale of dividend claims to third parties by non-resident taxpayers.

The following factual background shall be taken as the starting point for purposes of this article: Prior to the shareholders’ meeting of a German stock corporation (Aktiengesellschaft), a non-resident taxpayer who is a shareholder of such corporation sells his claim for a (future) dividend to a third party while remaining shareholder of the corporation (i.e. the shareholder does not sell his shares in the corporation). After having received the dividend, the shareholder passes on the dividend to the purchaser of the dividend claim.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Latham & Watkins LLP | Attorney Advertising

Written by:

more+
less-

Latham & Watkins LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×