Tax & Legal

Categories: All (5 found)

1. 20.11.2024

   Family foundation as financial institution as defined in Sec ...

   In a most recent decision, the Supreme Tax Court held that the legal form of an institution is not relevant for the qualification as financial company within the meaning of Section 8b (7) sentence 2 of the Corporation Tax Act to be read in connection with Section 1 (3) of the German Banking Act. Therefore, a family foundation under private law can also be considered as finance institution if they are primarily engaged in financial activities.

   Categories: Supreme Tax Court cases

   Keywords: family foundation
2. 31.05.2024

   Amount of tax-free allowance on transfer of assets to family ...

   In a most recent decision, the Supreme Tax Court held that great-grandchildren could also be potential beneficiaries of assets transferred to a family foundation for inheritance and gift tax purposes. They would be the „most distant beneficiary“ according to Section 15 para. 2 of the Inheritance and Gift Tax Act even if they have not yet been born at the time the foundation is established.

   Categories: Supreme Tax Court cases

   Keywords: inheritance and gift tax, family foundat ...
3. 18.03.2024

   ECJ referral: Higher gift tax for foreign family foundation ...

   The Cologne Tax Court has expressed doubts as to whether a family foundation based in Liechtenstein may be denied the inheritance and gift tax privilege applicable to domestic family foundations and has referred this question to the European Court of Justice for a preliminary ruling.

   Categories: Tax Court

   Keywords: gift tax, family foundation
4. 19.10.2023

   No specific determination of capital contributions account f ...

   Since the wording of Section 27 (7) of the German Corporation Tax Act does not cover estates, private foundations under civil law with legal capacity are not eligible for the specific determination of the special tax contributions account which is necessary to establish the amounts of tax neutral repayments of capital contributions. This was decided by the Supreme Tax Court in two similar cases. Contrary to the view held by other local tax courts the Supreme Tax Court gives precedence to the strict wording of the law.

   Categories: Supreme Tax Court cases

   Keywords: capital contribution, family foundation
5. 22.02.2022

   German tax implications on benefits granted by foreign found ...

   Are payments and contributions in kind from a foreign family foundation subject to German income tax? And what is the situation as regards the gift tax? Two tax court decisions shed some light. According to the Supreme Tax Court there is no gift tax liability for the beneficiary. The Regional Tax Court of Hamburg is of the opinion that a one-time payment from the foundation is subject to German income tax.

   Categories: Tax Court

   Keywords: gift tax, family foundation, beneficiary ...