In its ruling of 07.11.2019, the German Federal Fiscal Court decided that the concept of immovable property for income tax purposes does not have to be congruent with that for VAT purposes. Rather, movable objects can also constitute buildings for income tax purposes. The German Ministry of Finance has taken this as an opportunity to update its letter on the topic of construction withholding tax. This subject is of special interest due to recent geopolitical developments and the associated rethinking of energy production – as the ruling dealt with photovoltaic systems. However, the scope of application is of course much broader and extends to cover all types of structures and parts thereof.
Source: kmlz.de
