EU: EC concludes Germany’s special tax rules for public casino operators are illegal State aid
Germany must now recover the State aid, including interest, and repeal the tax rules.
Germany must now recover the State aid, including interest, and repeal the tax rules.
The European Commission (EC) has concluded that Germany's special tax rules for public casino operators are illegal State aid. Germany must now recover the State aid, including interest, and repeal the tax rules.
According to the related EC release:
- In Germany, public casino operators (Spielbankunternehmen) are subject to special tax rules that replace a series of otherwise applicable general taxes, in particular corporate or income tax and a local entertainment tax.
- Based on its in-depth investigation, the EC found that the special tax rules entail an economic advantage for the public casino operators in the form of a potentially lower tax burden in comparison to the normal tax rules.
- The EC also found that, as a result of the design of the special tax rules, the advantage is not automatic, and it does not materialize in all tax years and for all operators. Therefore, it will be for the German authorities to determine whether or not an advantage was granted to the public casino operators.
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