Tax & Legal

Categories: All (8 found)

1. 12.02.2025

   Trade tax treatment of the sale of a partnership share with ...

   In a recently published decision, the Supreme Tax Court held that the profit from the sale of a limited partnership share which is proportionally encumbered with an atypical sub-participation is fully subject to trade tax.

   Categories: Supreme Tax Court cases

   Keywords: Sale of shares, limited partnership
2. 16.12.2024

   Changes of shareholders in a property-owning partnership

   When determining whether a corporation with a direct interest in the partnership owning real estate is considered a new shareholder within the meaning of Section 1 (2a) sentence 4 of the Real Estate Transfer Tax Act because at least 90% of the shares are transferred to new shareholders, only the shareholding in the corporation must be taken into account. In a most current judgment, the Supreme Tax Court held that a previous participation of the new shareholder of the corporation in the partnership owning the real estate is irrelevant in this respect.

   Categories: Supreme Tax Court cases

   Keywords: limited partnership, real property
3. 16.07.2020

   Shareholding in corporation as a Special Business Asset II

   The Supreme Tax Court has ruled that for the purposes of considering the allocation of a partner's share in a GmbH to the Special Business Assets II of his partnership interest, regard must be had not only to the business relationship of the GmbH with the partnership – but also to whether the GmbH has a substantial business operation of its own.

   Categories: Supreme Tax Court cases

   Keywords: limited partnership, special business as ...
4. 15.02.2019

   Does a letterbox company have legal capacity?

   In a case involving a charge to real estate transfer tax (RETT), the Supreme Tax Court granted the taxpayer interim relief in the form of a suspension from execution (i.e. a delayed tax payment), as the question arose as to whether one of the parties to the transaction, a letterbox company, had legal capacity.

   Categories: Supreme Tax Court cases

   Keywords: limited partnership, Letter-Box Companie ...
5. 12.02.2018

   Write-up of shares in GmbH not part of tax-neutral profit tr ...

   The Supreme Tax Court has decided that a gain arising from a share disposal can be rolled-over on a tax-neutral basis under Section 6b Income Tax Act where the privileged asset has been sold to a related entity. However, the Court also ruled that the part of the gain attributable to the write-up of the privileged asset – where the earlier write-down of the shares had reduced the taxable profits -could not be rolled over as a tax-neutral transfer under section 6b of the Income Tax Act.

   Categories: Supreme Tax Court cases

   Keywords: limited partnership, roll-over relief, I ...
6. 17.03.2017

   No extended trade tax deduction on the disposal of an intere ...

   Profits arising from the sale of an interest in a partnership are not to be included in the extended trade tax deduction for real estate enterprises.

   Categories: Supreme Tax Court cases

   Keywords: limited partnership, Extended deduction ...
7. 16.03.2017

   Interest paid by foreign partner deductible also in case of ...

   In a decision published in March 2017 the Supreme Tax Court held that - in the case of a two-tier partnership structure – the interest expense of the Dutch partner holding only an indirect share in a German limited partnership is nevertheless tax deductible when computing his limited German tax liability resulting from his investment in the German partnership.

   Categories: Supreme Tax Court cases

   Keywords: limited partnership, Two-Tier Partnershi ...
8. 10.08.2011

   Foreign limited partnership does not shield non-trading inco ...

   The Supreme Tax Court has held that rental income earned through a Hungarian partnership is not automatically exempt as the income from a foreign permanent establishment, merely because the partnership was taxed locally as a corporation, or because the income would have been treated as trading income had it been earned through a German partnership.

   Categories: Supreme Tax Court cases

   Keywords: rental income, limited partnership