News on the return of deposits by third-country corporations

With the circular dated April 21, 2022, the Federal Ministry of Finance has made a paradigm shift and recognizes the possibility that also third-country corporations can make a tax-neutral return of capital contributions. In their article in DStR, Carolin Stehr and Raphael Baumgartner classify the BMF circular on the basis of the case law of the Federal Fiscal Court and highlight the criteria for a return of capital contributions that are relevant to the decision as well as the practical problems and uncertainties.