OFFERING MEMORANDUM Global Offering of up to ... - Nordex
OFFERING MEMORANDUM Global Offering of up to ... - Nordex
OFFERING MEMORANDUM Global Offering of up to ... - Nordex
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
income from private sales transactions in the previous calendar year or in the following calendar years.<br />
If individuals subject <strong>to</strong> unlimited tax liability realise capital gains from private sales transactions these<br />
earnings remain tax exempt as long as they are less than DM 1,000 p.a. per person in 2001, E512 from<br />
2002, respectively.<br />
For commercial sole proprie<strong>to</strong>rs, capital gains from disposal <strong>of</strong> <strong>Nordex</strong> shares are subject <strong>to</strong> full trade<br />
tax and income tax (plus solidarity surcharge). After Oc<strong>to</strong>ber 1, 2002, only half <strong>of</strong> these pr<strong>of</strong>its will be<br />
exempted from income tax (plus solidarity surcharge). Only 50% <strong>of</strong> operating expenses related <strong>to</strong> the<br />
dividends in financial terms may be deducted, regardless in which assessment period they accrue.<br />
Claims relating <strong>to</strong> losses from disposal are also limited.<br />
For commercial partnerships, capital gains from disposal are subject <strong>to</strong> full trade tax <strong>up</strong> <strong>to</strong><br />
September 30, 2002, from Oc<strong>to</strong>ber 1, 2001 only <strong>to</strong> 50%. They are also included in the uniform and<br />
itemised declaration and are allocated <strong>to</strong> the partners from there; the taxation <strong>of</strong> these partners<br />
depends on their legal form.<br />
For taxpayers subject <strong>to</strong> corporation income tax, gains from the disposal <strong>of</strong> <strong>Nordex</strong> shares <strong>up</strong> <strong>to</strong><br />
September 30, 2002 are subject <strong>to</strong> full trade tax and corporation tax (plus solidarity surcharge). After<br />
Oc<strong>to</strong>ber 1, 2002, gains from the disposal <strong>of</strong> <strong>Nordex</strong> shares generated by shareholders with corporation<br />
income tax liability will be tax-free. Operating expenses directly related in financial terms <strong>to</strong> tax-free<br />
capital gains from disposal will not be deductible. Losses from disposal may not be claimed.<br />
Shareholders Subject <strong>to</strong> Limited Tax Liability in Germany<br />
If a shareholder with limited tax liability in Germany receives capital gains from the disposal <strong>of</strong> <strong>Nordex</strong><br />
shares, these gains are subject <strong>to</strong> taxation in Germany if (i) the shares are part <strong>of</strong> the operating assets<br />
<strong>of</strong> an operating establishment in Germany or for which a permanent representative is appointed in<br />
Germany or (ii) the shareholder as an individual (in case <strong>of</strong> a gratui<strong>to</strong>us acquisition also his legal<br />
predecessor) directly or indirectly held at any moment within the last five years prior <strong>to</strong> the sale <strong>of</strong> the<br />
shares at least 10% (or at least 1% after Oc<strong>to</strong>ber 1, 2002) <strong>of</strong> the Company’s share capital or (iii) if the<br />
shares arose through contributions pursuant <strong>to</strong> section 21 Tax Reorganisation Act<br />
(Umwandlungssteuergesetz) or (iv) they are subject <strong>to</strong> taxation under the requirements <strong>of</strong> an<br />
extended limited tax liability pursuant <strong>to</strong> section 2 <strong>of</strong> the AStG (Auslandssteuergesetz -German Foreign<br />
Tax Act). Should a double taxation agreement apply, it is possible that capital gains from disposal may<br />
not be taxable in Germany.<br />
Special Rules for Credit Institutions, Financial Services Institutions<br />
and Financial Enterprises<br />
If credit institutions and financial services institutions hold or dispose <strong>of</strong> shares <strong>to</strong> be deemed part <strong>of</strong><br />
the trading book in accordance with section 1 (12) <strong>of</strong> the Gesetz über das Kreditwesen (KWG -German<br />
Banking Act), neither the Halbeinkünfteverfahren nor tax exemption applies <strong>to</strong> dividends or capital<br />
gains from disposal. The same applies <strong>to</strong> shares acquired by financial enterprises within the meaning <strong>of</strong><br />
the KWG with the aim <strong>of</strong> generating own-account trading pr<strong>of</strong>its in the short term. This also applies <strong>to</strong><br />
credit institutions, financial services institutions and financial enterprises domiciled in a different<br />
European Union member state or in another state which is part o the European Economic Area.<br />
Inheritance and Gift Tax<br />
Transfers <strong>of</strong> shares through inheritance or by way <strong>of</strong> a gift are subject <strong>to</strong> inheritance or gift tax if the<br />
testa<strong>to</strong>r, the donor or the acquirer is a ‘‘national ‘‘as defined in section 2 (1) <strong>of</strong> the<br />
Erbschaftsteuergesetz (ErbStG -German Inheritance Tax Act). Otherwise they are only subject <strong>to</strong><br />
taxation if (i) the shares are part <strong>of</strong> the operating assets <strong>of</strong> a permanent establishment in Germany<br />
respectively for which a permanent representative is appointed in Germany or (ii) the shareholder alone<br />
or <strong>to</strong>gether with related persons directly or indirectly held at least one-tenth <strong>of</strong> the share capital <strong>of</strong> the<br />
company in the moment <strong>of</strong> the acquisition or (iii) if the requirements <strong>of</strong> an extended limited tax liability<br />
pursuant <strong>to</strong> section 4 <strong>of</strong> the AStG are met.<br />
104