Specifc provisions on cross-border transactions
In addition to the general rules relating to the utilization of tax
losses, income tax legislation also contains specifc provisions on
cross-border transactions. Losses not deductible under certain cir-
cumstances include the following: losses from a foreign permanent
establishment, losses arising from the lease of property or relating to
agricultural or forestry activities based outside Germany, and losses
arising in connection with income which is tax-exempt in Germany.