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The German Ministry of Finance issued a circular on 29 June to extend the ‘simplified withholding tax procedure’ regarding German IP nexus rules to payments received before 1 July 2023.

Action to consider: Taxpayers have an additional year in which to file for exemption from the withholding tax and avoid penalties that otherwise may be imposed. Therefore, they should continue to evaluate their IP structures and transactions in order to identify potential German-registered IP and evaluate respective German compliance requirements.