If you as a natural person or your company have business relationships or investments related to a non-cooperative tax jurisdiction, you must submit certain information to the tax office and, if applicable, the Federal Central Tax Office. This is what the tax haven defense law provides, with which Germany implements EU law.

The law is intended to counteract the tax-damaging use of letterbox companies. According to the law, there is a list of so-called non-cooperative tax jurisdictions, which currently includes American Samoa, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, US Virgin Islands and Vanuatu.

It was said that the USA and Turkey actually belonged on this list because they meet the requirements of the Tax Haven Prevention Act. Turkey should now provide information so that it can no longer be viewed as a tax haven from a German perspective.

In the case of official tax havens, the legislative measures range from the failure to deduct business expenses or business expenses to stricter additional taxation as well as withholding tax measures and an expanded obligation to cooperate.

If you have further questions about the Tax Haven Defense Act, please contact the experts at the Altehoefer law firm for international tax advice.