Binding information
The tax offices - and in certain cases the Federal Central Tax Office - are authorised to issue individual binding information.
If an application is filed, the tax administration crosschecks the tax effects which the applicant is anticipating by an investment it is planning. If a ruling is issued, then the competent tax office is bound by this ruling in tax assessment procedure later on. As early as the planning phase, investors are thus given a reliable basis on which to calculate their tax burden.
A binding information is issued by the tax office responsible for assessing the tax levied on the planned investment. However, if on the date when the application is made no German tax office is yet responsible for the applicant, then the request is dealt with by the Federal Central Tax Office.
The formal requirements for filing an application for a binding information are laid down in Sect. 89 (2) of the German Fiscal Code in conjunction with the Tax Information Ordinance ( Steuerauskunftsverordnung ) and the rules in the Fiscal Code Application Decree ( Anwendungserlass zur Abgabenordnung ).
Whether or not a binding information is issued in any particular case is at the tax office's discretion. There is no legal entitlement to having a binding information issued.
A fee is charged for processing applications for binding information.
Further information on procedure for binding information can be obtained from the information sheet Binding information from the Federal Central Tax Office.
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