Firmengruendung.de / Thursday, February 18, 2021 / Categories: Limited (UK), Brexit Letter from the Tax Office Recognizing the Limited Company after Brexit BMF Letter dated 12/30/2020 Note: The contents of this post have become partly outdated due to changes in legal circumstances. Currently, tax offices are sending out informational letters, referencing the BMF letter from December 30, 2020. In these letters, the tax offices inform that, as per the BMF letter dated December 30, 2020, starting from January 1, 2021, a Limited company should no longer be treated as a capital company. We have already laid out our legal assessment on this matter in several posts. If the letters from the tax office are merely informational, we suggest the following non-binding letter, although you should also coordinate the approach with your tax advisor beforehand. If necessary, you can also download the letter in Word format. Alternatively, we are naturally available for individual legal advice. However, always pay special attention to whether the letters to you or the LTD contain binding statements with specific regulations or a legal remedy instruction. In this case, it must be examined separately whether legal remedies need to be filed. Tax Office Subject: Your letter dated Tax ID Dear Sir/Madam, I refer to your above-mentioned letter and kindly request you to provide the specific legal bases that underlie your legal opinion and the procedure you have described. Purely as a precaution, I would like to point out Article 54 TFEU in conjunction with . According to this, a company enjoys the freedom of establishment if it was founded in the EU and its main administration or main branch is located in the EU. Both conditions are likely met for our company, hence our LTD continues to enjoy the protection of freedom of establishment, or at least its effects: 1. Our Limited was founded before December 31, 2020 - thus within the EU internal market - founded. 2. The sole and thus main administration or at the same time main branch has been continuously in Germany, also within the EU. Also, in our view, the statement that the BFH and BGH jurisprudence prescribes the classification of English LTDs in the form you have presented is not legally correct. On one hand, both the BGH and BFH jurisprudence indeed include Art. 54, and thus correctly focus on the founding; see BFH 01/08/2019 II B 62/18 - Headnote 3; BGH 10/27/2008 - II ZR 158/06 paragraph 19. On the other hand, the corresponding jurisprudence has never been based on a case where a company's founding state has left the EU. If your above-mentioned letter contains one or more administrative acts, an objection is hereby filed. With kind regards Managing Director Previous Article The Legal Capacity of the Limited after Brexit Next Article LTD shareholders as a company subject to VAT according to § 2 UStG Print 3256 Tags: BrexitBFH 08.01.2019 II B 62/18Ltd RechtsfähigkeitBMF Schreiben 30.12.2020 IV A 3 - S 0284/20/20/100BGH 27.10.2008 - II ZR 158/06 Documents to download Finanzamt LTD Musterschreiben zu BMF 30.12.2020(.doc, 31.5 KB) - 216 download(s) More links Die Rechtsfähigkeit der Limited nach dem BrexitRegelung und Auslegung des Art 54 AEUV und der BFH, BGH Rechtsprechung BMF 30.12.2020Bekanntgabe eines Steuerverwaltungsaktes an sowie Vollstreckung gegen eine Gesellschaft in der Rechtsform einer Britischen Limited mit Verwaltungssitz (Ort der Geschäftsleitung) im Inland sowie deren Rechtsnachfolger nach dem 31. Dezember 2020 BFH Beschluss vom 08. Januar 2019, II B 62/18BFH zur Rechtsfähigkeit von Auslandsgesellschaften BGH Trabrennbahn EntscheidungBGH Urteil des II. Zivilsenats vom 27.10.2008 - II ZR 158/06 LTD Gesellschafter als umsatzsteuerrechtliches Unternehmen nach § 2 UStG Related articles The new § 12 paragraph 4 of the Corporate Income Tax Act - tax protection for the Limited The Legal Capacity of the Limited after Brexit The Free Trade Agreement Between the EU and the UK and Its Impact on the Limited Company in Germany LTD shareholders as a company subject to VAT according to § 2 UStG No Property Acquisition Tax Due to Brexit