German tax offices may require information on tax payers’ overseas companies as of 2018

The German federal government has approved the draft laws to necessitate the disclosure of relevant information on offshore companies that supposedly belong to German taxpayers. The new regulations come into effect as of January 1st, 2018 and oblige German citizens to officially notify on both direct and indirect ownership of over 10% shareholding of overseas companies or assets of over EUR150,000 located outside the EU. Violation of the recently adopted law will result in a EUR25,000 fine, with the statute of limitation over 10 years applied. Well, the German authorities definitely have a rich imagination for penalties!