Income tax consequences of the sale of dividend claims by non-resident taxpayers to third parties (BMF)

Online message – Tuesday 05/16/2023

Capital Gains Tax | Income tax consequences of the sale of dividend claims by non-resident taxpayers to third parties (BMF)

The BMF letter from 26.7.2013 is in contradiction to
BFH judgment of 11/15/2022 – VIII R 21/19 and is therefore canceled (Federal Ministry of Finance, letter from May 12, 2023 – IV C 1 – S 2252/19/10017 :001).

Background: The BFH with its judgment of 15.11.2022 – VIII R 21/19, decided that the blocking effect of
§ 20 paragraph 2 sentence 1 number 2 letter a sentence 2 EStG for the taxation of dividends
§ 20 paragraph 1 number 1 EStG according to the version applicable in 2013, also occurs if the profit from the sale of dividend entitlements in the case of persons with limited tax liability pursuant to
§ 49 EStG

is not taxable.

The BMF explained:

By the CroatiaAnpG from
25.7.2014 was clarified by law that actual taxation of the capital gains on dividend entitlements is required for the blocking effect to occur
§ 20 paragraph 2 sentence 1 number 2 letter a sentence 2 EStG is required. Since the 2014 assessment period, a non-taxable sale of dividend claims between persons with limited tax liability no longer results in the dividends being tax-exempt.

Those: BMF online
(JT)

Source(s):
NWB XAAJ-40008