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Applying for a German binding tax ruling (§ 89(2) AO)

German tax offices and the Federal Central Tax Office may, on application, give binding rulings on the tax treatment of precisely defined arrangements NOT YET CARRIED OUT, where there is a particular interest in this in view of the substantial tax consequences (§ 89(2) sentence 1 AO). Two figures decide whether applying is worth it: a decision SHOULD be taken within SIX MONTHS (§ 89(2) sentence 4 AO), and where the value at stake is less than 10 000 euros, NO FEE is charged (§ 89(5) sentence 3 AO). Anyone who waits until the arrangement has been carried out has shut the door: the statute names only arrangements not yet carried out.

Up to date for 2026 — verified on September 22, 2026Official procedure, no printed formGuide: about 40 min

Deadlines

Before the arrangement is carried out — otherwise not at all
§ 89(2) sentence 1 AO names only arrangements 'not yet carried out'
Decision: SHOULD be taken within six months of receipt by the competent authority
§ 89(2) sentence 4 AO — where it cannot decide, it must tell the applicant and give reasons
Fee: payable within ONE MONTH of notification of its assessment
§ 89(3) sentence 3 AO — and the authority may defer its decision until payment (sentence 4)

Documents to prepare

  • ELSTER access with a certificate or an ELSTER business account
  • A precise account of the planned arrangement: parties, sequence, dates, amounts
  • Reasons for the particular interest in the ruling
  • Your own legal view and the specific question of law
  • The value at stake and the circumstances relevant to determining it
  • Confirmation that the arrangement has not yet been carried out
  • Details of any other parties, where the ruling is to be given uniformly
See the procedure on the official site

No form is attached to this procedure: the link leads to the official page that describes it.

What this page gives you

The guide above and the link to the official site. ActioFin does not produce any document for this page: whatever you fill in or file is done on the official medium.

Who this applies to

  • Anyone PLANNING an arrangement whose tax treatment is uncertain and whose consequences are substantial — both elements appear in § 89(2) sentence 1 AO
  • Anyone able to define the arrangement precisely: the ruling is given on a 'precisely defined' set of facts, not on a general question of law (§ 89(2) sentence 1 AO)
  • Several parties to the same arrangement: where the ruling is given to them uniformly, only ONE fee is charged and they are jointly and severally liable for it (§ 89(3) sentence 2 AO)
  • Applicants with no competent tax office under §§ 18 to 21 AO: for taxes administered on behalf of the Federation, the Federal Central Tax Office is competent, and its ruling also binds the office later competent (§ 89(2) sentence 3 AO)
  • Not concerned: anyone who has already carried the arrangement out — for that there is the assessment procedure and, against the notice, the objection
  • Anyone merely seeking advice: the authority's general duty to inform under § 89(1) AO is a different thing and does not bind

Worked example

Lindner Verfahrenstechnik GmbH is planning a restructuring for 2027

The managing director wants to know whether a planned contribution will remain tax-neutral. The arrangement has not yet been carried out and the consequences are substantial — § 89(2) sentence 1 AO requires both. He applies to the authority that WOULD be locally competent when the arrangement is carried out (§ 89(2) sentence 2 AO), which is not necessarily his present tax office. The fee follows the value at stake, which he is to set out himself and which the authority SHOULD take as its basis unless that leads to an obviously incorrect result (§ 89(4) AO). It is charged by analogous application of § 34 of the Court Fees Act at a fee rate of 1.0 (§ 89(5) sentence 1 AO). Where the value at stake is below 10 000 euros, no fee at all is charged (§ 89(5) sentence 3 AO) — a question with a small amount at stake costs nothing. Where no value can be determined or even estimated, a TIME FEE takes its place: 50 euros per half hour of processing time begun, and where processing takes less than two hours no fee is charged (§ 89(6) AO). A decision should be taken within six months (§ 89(2) sentence 4 AO), so the restructuring has to be scheduled around that. If the managing director withdraws the application before the decision is notified, the fee may be reduced (§ 89(7) sentence 2 AO).

How to fill it in, step by step

  1. Check the timing first: the arrangement must NOT YET HAVE BEEN CARRIED OUT (§ 89(2) sentence 1 AO). This check comes before all others because it cannot be made good later.
  2. Explain the particular interest 'in view of the substantial tax consequences' — it is an element of the provision, not a courtesy (§ 89(2) sentence 1 AO).
  3. Define the arrangement PRECISELY: parties, sequence, dates, amounts. An abstract question of law is not a set of facts.
  4. Identify the competent authority by the test in § 89(2) sentence 2 AO: the one that WOULD be locally competent once the arrangement is carried out.
  5. Set out the value at stake and the circumstances relevant to determining it in the application (§ 89(4) sentence 2 AO) — the fee depends on it, and the authority is to take your figure as its basis.
  6. Work out in advance whether any fee arises at all: none below 10 000 euros of value at stake (§ 89(5) sentence 3 AO), and where the value cannot be determined, only from two hours of processing time (§ 89(6) AO).
  7. Log in to Mein ELSTER and select the application for a binding ruling.
  8. Allow six months for the decision (§ 89(2) sentence 4 AO) and do not schedule completion of the arrangement before that.
  9. Pay the fee within one month of notification — the authority may defer its decision until then (§ 89(3) sentences 3 and 4 AO).

Good to know

  • The 10 000 euro threshold is a genuine exemption limit for the fee, not an allowance: where the value at stake is less, NO fee is charged (§ 89(5) sentence 3 AO).
  • With several applicants and a uniform ruling only ONE fee arises, for which all are jointly and severally liable (§ 89(3) sentence 2 AO) — an arrangement with several parties is no more expensive for that.
  • The authority SHOULD take the value at stake you declare as its basis unless that leads to an obviously incorrect result (§ 89(4) sentence 3 AO). Setting it out in the application is therefore not a formality.
  • The fee may be waived in whole or in part where charging it would be inequitable in the circumstances of the individual case, and may in particular be reduced where the application is withdrawn before the decision is notified (§ 89(7) AO).
  • The six-month period is a 'should' rule with a duty to give reasons: where the authority cannot decide within it, it must tell the applicant and state why (§ 89(2) sentence 4 AO).
  • Form, content, conditions and the reach of the binding effect are left to a regulation of the Federal Ministry of Finance (§ 89(2) sentence 5 AO) — the statutory text alone does not describe them exhaustively.
  • General advice under § 89(1) AO is a different thing: there the authority is to prompt returns and applications and inform on rights and duties. Only the ruling under subsection 2 binds.

Common mistakes

  • Applying after the contract has been signed. § 89(2) sentence 1 AO covers only arrangements NOT YET CARRIED OUT — this mistake cannot be repaired.
  • Asking a general question of law. The ruling is given on a 'precisely defined' set of facts.
  • Not explaining the substantial tax interest. It is a statutory condition, alongside the precise definition of the facts.
  • Filing with your present tax office. Competent is the authority that would be locally competent once the arrangement is CARRIED OUT (§ 89(2) sentence 2 AO).
  • Leaving the value at stake open. The applicant SHOULD set it out together with the relevant circumstances (§ 89(4) sentence 2 AO); without that you lose your influence on the fee.
  • Fearing a fee that does not arise: none below 10 000 euros of value at stake (§ 89(5) sentence 3 AO), and on a time fee only from two hours of processing (§ 89(6) AO).
  • Leaving the fee unpaid. It is due within one month of notification of its assessment, and the authority may DEFER its decision until payment (§ 89(3) sentences 3 and 4 AO) — you pay for your own waiting time.
  • Scheduling completion of the arrangement before the six months are up (§ 89(2) sentence 4 AO).

Frequently asked questions

What can I get a binding ruling on?

On the tax treatment of precisely defined arrangements not yet carried out, where there is a particular interest in this in view of the substantial tax consequences (§ 89(2) sentence 1 AO).

What does it cost?

The fee is calculated on the value the ruling has for you (§ 89(4) sentence 1 AO), by analogous application of § 34 of the Court Fees Act at a fee rate of 1.0 (§ 89(5) sentence 1 AO). Where that value is less than 10 000 euros, no fee is charged (sentence 3).

And if no value can be determined?

A time fee is then charged: 50 euros per half hour of processing time begun. Where processing takes less than two hours, no fee is charged (§ 89(6) AO).

How long does it take?

A decision should be taken within six months of receipt by the competent authority; where it cannot decide within that period, it must tell the applicant and give reasons (§ 89(2) sentence 4 AO).

Which tax office is competent?

The authority that would be locally competent once the arrangement underlying the application is carried out (§ 89(2) sentence 2 AO). Where no authority is competent under §§ 18 to 21 AO at the time of application, the Federal Central Tax Office takes its place for taxes administered on behalf of the Federation (sentence 3).

Can I withdraw the application?

The statute expressly contemplates it in the fee rules: the fee may in particular be reduced where an application for a binding ruling is withdrawn before the authority's decision is notified (§ 89(7) sentence 2 AO).

Go further

Compute the related amounts

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Official sources

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Guide and document provided for information purposes only; they do not constitute personalised legal or tax advice. Check the recipient organisation's requirements and consult a professional if needed.