Taxation Procedure - Binding Ruling (verbindliche Auskunft)

• Written form • Name of the applicant (Antragsteller) (Name, address, tax number) • Comprehensive description of the facts of the case The request for a binding ruling (verbindliche Auskunft) must set out in detail and in full the seriously intended set of facts that has not yet been carried out at the time the application is filed. It is not harmful if preparatory steps have already been taken, as long as the facts underlying the request are, in essence, not yet carried out and other courses of action are still possible. • Statement of the applicant's particular tax interest • Detailed presentation of the legal issue with a thorough justification of the applicant's own legal position • Information on the period and type of tax • Formulation of specific legal questions It is not sufficient to set out general questions about the tax law issues that would arise if the planned facts were carried out. • Declaration of exclusivity A declaration that no binding ruling has been requested from any other tax authority (Finanzbehörde) regarding the facts submitted for assessment. • Assurance by the applicant that all information required for issuing the ruling and for the assessment has been provided and is true.

• Written application

Processing the application is generally subject to a fee. The fee is calculated based on the Gegenstandswert (value of the matter / tax effect). This must be substantiated by the applicant. It is levied on the basis of the Gerichtskostengesetz (Court Fees Act). The Gegenstandswert is capped at a maximum of €30 million. If the Gegenstandswert is below €10,000, no fee is charged. If the Gegenstandswert cannot be determined, a time-based fee of €50 is charged for each half hour, or part thereof, of processing time. If the processing time is under two hours, no fee is charged. The fee must be paid within one month of its assessment. The decision on the application can be deferred until the fee has been paid.

• § 89 Abgabenordnung (Fiscal Code) www.gesetze-im-internet.de/ao_1977/__89.html

Responsibility (Zuständigkeit) for issuing the binding ruling (verbindliche Auskunft) lies with the tax authority (Finanzbehörde) that would be responsible if the facts underlying the application were realized. For applicants for whom no tax authority is yet responsible at the time the application is submitted, and whose application concerns joint taxes (Gemeinschaftssteuern) (income tax, wage tax, value added tax, corporation tax), the Federal Central Tax Office (Bundeszentralamt für Steuern) is responsible.