KPMG Germany Webpage
Click on the above link to visit the KPMG Germany webpage on the Mondaq website
For disclaimer and copyright see end of this article.
1. Repeal of the statute
In article no. 178, we reported on the government's announced
intention to repeal retroactively the foreign contractor withholding provision
(§ 50a (7) EStG) added to the income tax code with effect from 1 April 1999 by
the Tax Relief Act for the Years 1999/2000/2002. Our article also discussed the
withholding provision itself at length.
The 1999 Tax Adjustment Act (see article no. 183) repeals
§ 50 (7) EStG retroactive to the date on which it first took effect.
A directive issued by the Federal Ministry of Finance on 11 August
1999 (BStBl I 1999, 728) instructed the tax authorities to refund tax which has already
been withheld and remitted provided the requirements were met for a withholding exemption
or for a refund.
