Draft of a Federal Ministry of Finance letter on the principles for applying the Foreign Tax Act in the form of the German ATADUmsG - statements on add-back taxation

Since 01.01.2022, the taxation of add-backs in the form of the German Foreign Tax Implementation Act (ATADUmsG) has already been applicable. While this has long been discussed in the literature, the tax authorities commented on the application of the new Foreign Tax Act for the first time with a long-awaited draft of a BMF letter on 19.07.2023. “A very detailed letter, which nevertheless leaves a lot to be desired,” say POELLATH professionals Raphael Baumgartner and Jannis Lührs. In their article, they explain what the tax authorities have to say and where improvements should be made.