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A provision that may result in insurance premium payments made by a nonresident to an insurer in a third country being subject to tax in Germany—even in the case of intragroup contributions—increasingly is becoming the focus of tax audits. Court decides rules violate EU law for all payments triggering withholding tax, regardless of whether a reduced rate applies based on an EU directive or an applicable tax treaty. Partner was eligible for exemption relating to its share of rental income from real estate managing partnership. Tax authorities abandon plans to apply domestic WHT rules to payments to nonresidents for online advertising.
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