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Tax Scorecard

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Match 1GERMANY
ARGENTINA
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Currency and Rate / $

Euro (EUR) / USD = 0.73

Argentine Peso (ARS) / USD = 8.14

Tax Year

Calender Year

Accounting Year for Corporates, Calender year for Individuals 

RoI Filing Due Date

May-14 

15 April to 20 April (Individuals) 

Residential Status
- Individuals

1. Domicile in Germany for personal use 2. Customary place of abode i.e. they are present in Germany for an uninterrupted period of six months that may fall in 2 calender years - Citizenship not a consideration 

Individuals deemed to be residents in Argentina - Native and naturalized Argentine citizens ; foreign individuals who are granted permanent residence in Argentina; foreign individual who remain in Argentina under temporary authorization for a period of 12 months or longer. Individuals in the last cetegory who are not granted permanent residence are deemed as NRs if they prove they do not intend to stay permanently in Argentina. Foriegn individuals who can prove that they are in Argentina because of their employment and remain in Argentina for a period not exceeding 5 years are not considered residents 

- Corporates

Stock corporations and limited liability companies having corporate seat or place of management in Germany are subject to corporate income-tax on world wide income 

Companies incorporated in Argentina and brnaches of foreign companies considered as resident companies 

Tax Rates
- Individuals

Progressive rates of taxation ranging from 14% to 45% (5.5% solidarity surcharge imposed) 

Progressive rates ranging from 9% to 35% 

- Corporates

15% (5.5% solidarity surcharge imposed) 

35% 

Withholding Tax Rates
- Royalty

15% + 5.5% surcharge 

35% on notional taxable income; (effective rates of 31.5%, 28% and 12.25% depending on type of intangible property) 

- Fees for Technical Services

No 

35%; (effective rates of 21%, 28% and 31.5% depending on type of service) 

- Dividends

25% + 5.5% surcharge 

10% (plus equalization tax of 35% under conditions) 

- Interest

0% 

35%; 15.05% (under conditions) 

OECD Status

Member

Non Member

No. of Treaties

100 

15 

Treaty with India

Yes (Comprehensive) 

No 

Advance Ruling

Yes 

Yes 

GAAR

Yes. Per German General Tax Code, any legal arrangement implying treaty benefit can be disregarded for tax purposes if taxpayer achieves benefit through “inappropriate” legal structures. Tax benefits that (i) would not have been achieved when using an “appropriate” structure, and (ii) the structure cannot be justified with significant non-tax (i.e., commercial) reasons; implemented in 1977 ; New regulations introduced w.e.f. 1 January 2008; GAAR invoked in case an inadequate arrangement leading to a tax benefit that law does not provide for ; GAAR may override treaties 

Yes 

CFC Legislation

Yes; The German CFC rules only apply if non-German entity has its statutory seat and place of effective management and control outside Germany and is structured such that it can be assimilated to a corporation under German entity-characterization rules, i.e. has more corporate than partnership features

Yes, In Argentina, CFC rules apply to resident shareholders of foreign corporations in low tax jurisdictions when passive income is higher than active income. Passive income includes dividends, interest, royalties, leases and other passive income. 

Anti-Tax Haven

For witholding tax exemptions; some tests to be performed for applying treaty benefits - Shareholder Test, Business Income Test, Business Purpose Test, Substance Test 

Transactions with entities and individuals located in low-tax jurisdictions (list of countries and other jurisdictions qualifying as low-tax jurisdictions specified) are deemed to be not carried out at arm’s length and TP is applicable 

Transfer Pricing

Yes 

Yes, applies to transactions with related parties 

Safe Harbour

Yes 

No 

APA

Yes 

No 

Indirect transfer taxation

Under German Real Estate Transfer Tax Act, a direct or indirect transfer (or a claim for a transfer) of 95 per cent or more of the shares or partnership interests in a company owning German real estate by one acquirer (including affiliated entities and dominated entities) triggers German real estate transfer tax . This applies not only in cases in which the participation is held directly, but also if it is held indirectly via intermediary companies or if there is a combination of direct and indirect participation 

No 

Indirect Tax Regime

Value Added Tax 

Value Added Tax 

- Applicable Rate

19% , 7% 

27%, 21% , 10.5% 

Special Tax Regime For Sportsmen

Sportsmen, especially champions the world over are not only revered but in many cases attain the status of demi-gods; and when that happens, a special tax treatment is the least they deserve.

Here is a Taxsutra compilation of select countries with special tax regimes for sports stars. 


Residence United against Source Tigers; a half time analysis

The kick off of the match was clearly in favor of Residence United. (“RU”) Having invented the modern day game, and controlling the rules of the game for many decades, RU has maintained an edge over the Source Tigers (“ST”) for a long time. And it all worked out pretty well for RU when they had a strong home base, exporting talent and capital to the ST side, knowing repatriation will happen sooner or later. It was a one directional pattern, well manageable. 


Sports & Tax Controversies

While sports stars usually make headlines for their on-field exploits, some of them have also made to the front pages for all the wrong reasons! Surprise surprise, a few of them have even managed to land up in tax controversies. Here is a list of those sports celebrities and the tax issues involved in each case. 


Recent News in Soccer Tax World

Special research on certain recent developments in Soccer Taxation, in France, Spain, Brazil & Argentina


Suggested Reading

Picturesque Brasil

© EMBRATUR - Instituto Brasileiro de Turismo

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