Press Release: Direct Taxation: The European Commission refers Germany to the European Court of Justice over its discriminatory rules for buildings abroad

The European Commission decided to refer Germany to the European Court of Justice for its discriminatory tax depreciation rules applied to buildings situated abroad. Under German law higher percentages of depreciation may be applied in the first year(s) of construction or acquisition of buildings situated in Germany than for buildings situated abroad. The Commission considered this difference in treatment to be incompatible with the principle of free movement of capital.