reclaimer - Claims to Germany

Electronic data transmission of German tax reclaims

Zürich, Jul 2021

The German "Deduction-Tax-Relief-Modernisation-Act" (AbStEntModG) has come into force and will also change the reclaim procedures according to §50d paragraph 1 EStG. Germany will change the application process to electronic data transmission as of 1 January 2023. As described in the information from the BZSt (link), the procedural regulations of §50d paragraphs 1 and 2 EStG have been transferred to §50c EStG. The general obligation to transmit data electronically as of 01.01.2023 can be waived by the BZSt in exceptional cases. Furthermore, it will be permitted to enclose separate certificates of residence with the applications, which indicate that, analogous to the FTA M2M procedure, a physical claim must be sent to the FTA after the data transmission. Approvals after successful claim will be also be available for a digital data retrieval.

Further details on the procedure are not yet known. Upon request, the BZSt has informed that applications for the refund of German tax on capital income will also brought into a electronic data transmission. Whether this will also happen on 01.01.2023 could not yet be said.

Background information:

• 20.01.2021 - A press release was issued by the German Federal Ministry of Finance (Link)
• 08.06.2021 - The "Deduction-Tax-Relief-Modernisation-Act" (AbStEntModG) was proclaimed on 08.06.2021 (Link)
• 09.06.2021 - The law came into force (Link).