EY-Global-oil-and-gas-tax-guide-2014

204 Germany
Germany
Country code 49
Hamburg GMT +1
EY
Wirtschaftspruefungsgesellschaft
Rothenbaumchaussee 78
20148 Hamburg
Germany
Phone: +49 (0)40 36132 0
Fax: +49 (0)40 36132 550
hamburg@de.ey.com
Oil and gas contacts
Dr. Florian Ropohl
Phone: +49 (0)40 36132 16554
florian.ropohl@de.ey.com
Dr. Klaus Bracht
Phone: +49 (0)40 36132 11232
klaus.bracht@de.ey.com
Tax regime applied in the country
■ Concession
■ Royalties
□ Profit-based special taxes
■ Corporate income tax
□ Production Sharing Contracts
□ Service Contract
A. At a glance
• Income tax rate — Approx. 29.8%
• Royalties — 0%–40%
• Bonuses — None
• Production sharing contracts (PSCs) — None
Oil and gas companies
Other companies
Ordinary tax Approx. 29.8% Approx. 29.8%
Special tax 0%–40% None
B. Fiscal regime
The fiscal regime that applies to the oil and gas industry in Germany consists of
a combination of royalties (called: “Foerderabgaben”) and corporate profits tax,
i.e. corporate income tax, solidarity surcharge and trade tax.
In principle, there is no special taxation regime applicable to the oil and gas
industry in Germany. Oil and gas companies are subject to the general
accounting and taxation principles, i.e. they are subject to corporate income
tax, solidarity surcharge and trade tax. In addition to that, oil and gas
companies are subject to royalties for the exploration of oil and gas in Germany.
Germany does not impose signature or production bonuses, and there are no
state participation arrangements.
The German ministry of finance has set out its opinion regarding the tax
treatment of issues related to oil and gas in a decree dated 13 December 1957,
followed by an amendment dated 20 May 1980. The content of this decree is
generally still applicable on the basis of decrees at state level containing
guidelines as to whether expenses have to be capitalized or can be deducted,
the useful lifetime of an extraction right, the treatment of provisions for
abandonment, etc. In particular, no generally admitted federal decree currently
exists, and so a taxpayer subject to taxation in one local state can generally not
rely on a decree issued by the Tax Authority of another local state.