Tax & Legal

Categories: All (11 found)

1. 17.07.2025

   The new law on defective resolutions for partnerships under ...

   With the entry into force of the Act for the Modernisation of Partnership Law (“MoPeG”) on 1 January 2024, the legislators fundamentally reformed the rules regarding defective resolutions for commercial partnerships (OHG, KG, GmbH & Co. KG). Sections 109–115 of the German Commercial Code (HGB) contain for the first time detailed provisions on resolution procedures and the judicial enforcement of resolution defects.

   Categories: Tax & Legal News, Legislation

   Keywords: partnership, legislation
2. 30.04.2025

   Tax treatment of shareholder loan granted to asset-managing ...

   A shareholder loan granted to an asset-managing partnership is not recognized from a tax point of view insofar as the company's loan liability is attributable to its shareholder for tax purposes (Section 39 (2) no. 2 of the German Fiscal Code). According to a recent decision of the Supreme Tax Court, the loan agreement neither leads to deductible income-related expenses for the borrower nor to income from capital assets for the lender but is rather considered a tax-neutral contribution. This would be different only in the case of commercially active partnerships.

   Categories: Supreme Tax Court cases

   Keywords: IFRS (Asset Management), partnership, sh ...
3. 15.01.2024

   Constitutional Court: Tax privileged transfer of business as ...

   The Federal Constitutional Court held that § Section 6 (5) Income Tax Act providing for the transfer of business assets at book values to be incompatible with the German Basic Law insofar as it rules out a transfer at book value between partnerships with identical shareholding. This exclusion from the tax privilege is incompatible with the general guarantee of the right to equality and thus not justified.

   Categories: Constitutional Court

   Keywords: partnership, asset transfer
4. 28.09.2022

   Allowable depreciation after acquisition of share in asset-m ...

   According to a ruling of the Supreme Tax Court, the shareholder (partner) of an asset-managing partnership who has acquired his share for a consideration, can claim depreciation on the jointly owned depreciable assets on a pro rata basis and only in accordance with his acquisition costs and the remaining useful life of the respective asset at the time the share was acquired.

   Categories: Supreme Tax Court cases

   Keywords: Asset & Wealth Management, partnership, ...
5. 16.04.2021

   VAT group: ECJ defines eligibility of partnerships as contro ...

   The ECI held that it is from the outset not compatible with EU-Law if the possibility for a partnership to form a VAT group - in addition to the controlling company – is limited to those partners in the partnership whose business is financially integrated into that of the parent. Such a restriction can only be justified by a specific need to prevent abuse.

   Categories: European Court of Justice

   Keywords: VAT group, partnership, controlled compa ...
6. 29.01.2019

   Payments-on-account received by a insolvency practitioner do ...

   Where an insolvency practitioner prepares an annual balance sheet, his claim to a payment-on- account is to be treated as a part of the final fee and does not lead to a realisation of profits upon receipt.

   Categories: Supreme Tax Court cases

   Keywords: partnership, payments on account, Income ...
7. 26.03.2015

   Partnerships to be eligible for VAT groups?

   An ECJ advocate general has suggested that management holding companies be allowed an input tax deduction in proportion to the taxable/total turnover of their subsidiaries and that partnership subsidiaries should not be excluded from joining a VAT Group.

   Categories: From Europe

   Keywords: VAT group, partnership, Shipping, manage ...
8. 13.03.2014

   No input tax deduction on acquisition of intangibles to be p ...

   The ECJ has held that a German tax consultant cannot deduct the input tax on the acquisition of an intangible from one partnership for use by another for lack of his own economic activity.

   Categories: From Europe

   Keywords: input tax, partnership, intangibles
9. 05.03.2014

   Partnerships to join VAT groups?

   The Supreme Tax Court has asked the ECJ for a ruling on the determination of the amount of deductible input VAT of holding companies with taxable outputs and on the conditions for joining VAT groups.

   Categories: Supreme Tax Court cases

   Keywords: Holding, VAT group, partnership
10. 12.11.2013

    Discussion draft on partnerships

    The finance ministry has published a discussion draft decree on the tax treaty treatment of partnerships. Comments are invited by December 2, 2013.

    Categories: Official Pronouncements

    Keywords: partnership, discussion draft, Tax Treat ...
11. 05.05.2011

    Partnership management fee subject to VAT

    The Supreme Tax Court has held that an unlimited partner's fee for management, representation and for liability for the partnership's debts is subject to VAT as a single supply.

    Categories: Supreme Tax Court cases

    Keywords: partnership, general partner, management ...