On 20 September 2018, the Court of Justice of the European Union (CJEU) issued its judgment concerning whether Germany's restrictions on the participation exemption for trade tax purposes in relation to non-EU subsidiaries violates the principle of free movement of capital under EU law. The German trade tax has a similar tax basis as corporate income tax, but with certain add-backs and deductions. As with corporate income tax, a 95% participation exemption applies for trade tax but with diff…