Tax & Legal

Beneficiaries of a bequest may also claim the lump-sum deduction for estate-related expenses under Section 10 (5) Number 3 Sentence 2 of the Inheritance and Gift Tax Act. According to a most recently published decision of the Supreme Tax Court, this lump-sum allowance must not be reduced if the inheritance received by the other heirs is not subject to German taxation.

The Supreme Tax Court has disallowed an expense deduction up to the higher lump-sum amount for accommodation on business travel, where the employer bore the actual amount payable.