Advising on German withholding taxes is another area of expertise of GHS. German withholding taxes can arise in various service relationships between Swedish companies and German companies. The withholding taxes become relevant for Swedish investors in particular when a German subsidiary distributes dividends to Swedish companies or individuals. In addition, German withholding taxes are relevant for royalty payments from German companies to Swedish companies.
Very often, withholding taxes withheld in Germany must be refunded to Swedish investors due to tax exemptions in the double taxation treaty (DTT) between Germany and Sweden or an European directive. However, such claims must be recognized and actively asserted with the German tax authorities.
In some cases, early action can even prevent withholding taxes from being levied in Germany in the first place. In this way, liquidity can be protected. We will be happy to advise you on the best course of action in your individual situation.