The German Federal Ministry of Finance and the Finance Ministries of the German states have decided that withholding tax should not be imposed on payments for digital advertising services. This follows consideration by the German Ministry of Finance on whether payments for online advertising services may constitute royalty payments under German tax law, and therefore be subject to withholding tax, which has been the position taken by certain tax auditors in recent cases. Click the following link for a release from the Bavarian State Ministry of Finance on the decision. The official position of the Federal Ministry on the matter...