Maintenance costs Part of the leasing rate within the meaning of Sec. 8 No. 1 German Trade Tax Act (GewStG)
In a recently published ruling, the BFH (ruling dated October 20, 2022, file no. III R 33/21) for the first time commented on the interpretation of the term ...
In a recently published ruling, the BFH (ruling dated October 20, 2022, file no. III R 33/21) for the first time commented on the interpretation of the term "leasing rates" for the purposes of the trade tax addition pursuant to Sec. 8 No. 1 d) German Trade tax act (GewStG): "Leasing rates" are to be understood in the same economic sense as rental and lease payments.
In the case decided, this meant that maintenance costs passed on to the lessee, which the lessee had to pay to the lessor in addition to the leasing rates, were subject to trade tax addition for the lessee within the meaning of Section 8 No. 1 d) GewStG.
| LeasingPilot recommendation In finance leases, maintenance is usually passed on to the lessee and contracted out by the lessee to third parties. The ruling concerns the case where maintenance is provided by the lessor. In this case, according to the BFH, the additional maintenance costs borne by the lessee are subject to the trade tax addition in the same way as if the maintenance were included in the lease payments. If necessary, it could be a solution in these cases to regulate the maintenance by the lessor by means of a separate maintenance contract at third-party conditions. |
(Attorneys, tax advisors Stefan Sovinz, Holger Bachmann)
