Resident tax liability, unbeschränkte Steuerp-ficht

Corporations not residing in Germany are subject to tax on
their income from sources in Germany (non-resident tax liability,
beschränkte Steuerpficht), which includes income derived from
a permanent establishment (Betriebsstätte) or a permanent
representative in Germany, gains from the sale of shares in a
German corporation (if specifc conditions are fulflled), income
from agriculture and forestry, rental income, investment income,
and certain categories of income subject to withholding tax.

No differentiation is made between publicly and closely held
corporations. Capital gains on the sale of real estate located in
Germany are also subject to German corporate income tax.
A corporation is considered resident in Germany if it maintains
either its registered offce (as determined by its articles of
incorporation) or its principal place of management in Germany.
The principal place of management is where key decisions are
regularly made and the place from which day-to-day business
operations are managed. Corporations lacking either of these
nexuses are considered non-resident.

Residence determines whether a corporation is subject to tax in
Germany on its world-wide income or only on its German-source income.