Applying for (partial) exemption from German capital gains tax for foreign corporations

You must submit the application for exemption in writing to the Federal Central Tax Office (BZSt), Division St I B 3.

• Download the application from the BZSt website. Complete the application electronically. Print it out and sign it.
• The tax authority of the foreign country must confirm your residency.
• Then send the application and all documents by post to the BZSt office in Bonn.
• Your application will be processed and checked by the BZSt.
• You will receive a certificate of exemption or a notification of rejection of your application by post.
• If an exemption certificate is issued, the distributing corporation (debtor) may refrain from withholding tax in whole or in part from the outset if the exemption certificate is available.
  

Applications can be submitted:

• legal entities domiciled abroad
  •  that are subject to taxes on income or profit in their country of residence without being exempt, and
  •  who receive investment income from domestic corporations with unlimited tax liability in which they hold a direct interest of at least 10 percent

When submitting the application, you must submit

• appropriate power of attorney in the event that the application is submitted via an authorized representative
• Proof of the amount of direct participation in the nominal capital of the affiliated company, for example:
• Contracts on the acquisition of the shares or notarized current list of shareholders
• Proof of the justification of the investment income, for example:
  • Profit participation rights agreement
  • loan agreement

none

Application: The validity of the exemption certificate begins at the earliest on the day on which the application is received by the Federal Central Tax Office (BZSt)

Validity of the exemption certificate: at least 1 to a maximum of 3 years, after which a new application must be submitted

• for processing the application: 3 months after complete submission of all required evidence

§ Section 50c (2) EStG

• § Section 50d (2) of the Income Tax Act (EStG)

• Objection
• Fiscal court action
  

• Forms: yes
• Online procedure possible: no
• Written form required: yes
• Personal appearance required: no
  

• Application for exemption on the website of the Federal Central Tax Office
• Application for exemption in connection with the German-Swiss double taxation agreement of 11.08.1971 on the website of the Federal Central Tax Office
• Application for (partial) exemption in connection with the double taxation agreement between Germany and Taipei on the website of the Federal Central Tax Office

15.12.2020