Germany: New Developments For Real Property Transactions

On July 9, 2014, the German Supreme Fiscal Court decided a real estate transfer tax (“RETT”) case that shines a new light on RETT structures. Contrary to the long-standing interpretation of the law, the court took the position that aspects of economic ownership are also relevant for RETT purposes.

Until now, it was the unanimous agreement of tax experts in literature, legislation, and courts that for RETT purposes, the civil law position and structure determines […]

By |October 14th, 2014|

Luxembourg: Real Estate Rich Companies Clause – Tax Treaty With France

Luxembourg signed a protocol to the income tax treaty with France on September 5th 2014 (“French Protocol”).

The French Protocol introduces a so called “real estate rich company” clause. Under the present version of the income tax treaty with France, Luxembourg is authorized to tax capital gains realised by a Luxembourg resident upon disposal of shares held in a company holding real estate in France. Under the French Protocol, the “real estate rich company” clause […]

By |October 11th, 2014|

United States And Brazil Sign FATCA Intergovernmental Agreement

The United States and Brazil have signed a “Model 1” intergovernmental agreement (“IGA”) with respect to the US Foreign Account Tax Compliance Act (“FATCA”). The Brazilian IGA is intended to simplify FATCA information reporting and reduce compliance burdens for Brazilian financial institutions.

Background

FATCA (contained in Sections 1471 through 1474 of the Internal Revenue Code) was enacted in 2010 in order to reduce perceived offshore tax evasion by US persons holding assets through offshore accounts that […]

By |October 11th, 2014|