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German Ministry of Finance Issues Guidance on Royalty Payment Deduction Restriction

|Approved Changes|Germany
Germany

The German Ministry of Finance has published two guidance letters concerning the restriction on the deductibility of royalty payments that are subject to taxation under a preferential tax regime. The restriction limits the deduction of royalty payments to related parties made after 31 December 2017 if the income is taxed at a low rate of less than 25% as a result of the benefits of a preferenti…

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