In the opinion of the tax authorities (BMF dated 4 April 2016, IV C 2 - S-2836 / 08 / 10002), nominal capital repayments should also be covered by the scope of application of Section 27 (8) KStG in future, i.e. in all open cases. Previously, it was only necessary to submit an application in the context of the return of capital contributions at the level of foreign subsidiaries in order to be able to receive these capital repayments tax-free at the level of the parent company. On the basis of the BMF letter, repayments from the nominal capital of foreign companies should now also only be possible tax-free upon application.
The provision of Section 27 (8) KStG is not to apply to corporations domiciled in third countries. This means that, in addition to repayments from other equity, repayments of nominal capital from third countries on the part of a domestic shareholder can no longer be treated as tax-free.
The extent to which this regulation already constitutes a violation of European fundamental rights is being discussed (see Dötsch in D/P/M, § 27, para. 267).
