Tax & Legal

Categories: All (20 found)

1. 05.06.2024

   Update: Federal Ministry of Finance publishes draft bill for ...

   On 17 May 2024, the Federal Ministry of Finance (MoF) sent a draft bill for the Finance Act 2024 (FA 2024) to the professional associations for comments by 24 May 2024. The draft has now also been published on the MoF website. The law is intended to implement changes to various areas of German tax law which need adjustment. The focus is on adjustments required by EU law and case law of the European Court of Justice (ECJ), the German Federal Constitutional Court, and the German Supreme Tax Court. Furthermore, follow-up amendments to previous legislative changes will be made. This blog summarises the key content. - Meanwhile the Federal Cabinet has approved the draft bill (see Update further below at the end of this post).

   Categories: Official Pronouncements, Legislation

   Keywords: real estate transfer tax, trade tax, Reo ...
2. 15.12.2023

   Bundesrat approves a partial implementation of the Growth Op ...

   On 15 December 2023, the Bundesrat approved the partial implementation of the contents of the Growth Opportunities Act in the Act to Promote the Secondary Credit Market. This includes changes to the interest limitation rule and adjustments resulting from the introduction of the Act for the Modernisation of Partnerships.

   Categories: Official Pronouncements, Legislation

   Keywords: real estate transfer tax, thin capitalis ...
3. 07.11.2023

   Joint decrees: Attribution of real estate for the supplement ...

   On 16 October 2023, the long-awaited joint decrees (issued by the Supreme Tax Authorities of the Federal States) on the attribution of real estate for the purposes of the taxation of share deals (Section 1 (2a) to (3a) RETTA) became available. These adopt the previous case law of the Supreme Tax Court from 1 January 2021 (II R 44/18) and 14 December 2022 (II R 40/20) and illustrate the legal opinion with examples.

   Categories: Official Pronouncements

   Keywords: Real Estate, real estate transfer tax, R ...
4. 01.09.2023

   Merger of church parishes followed by formation of new paris ...

   If a new church parish is established by merging several church parishes, real estate transfer tax is payable if the original parishes held shares in real estate-owning GmbHs and these GmbH shares are all in the hands of the newly established church parish after the merger. The Supreme Tax Court decided that this also applies if those GmbHs operate charitable institutions such as hospitals or retirement homes.

   Categories: Supreme Tax Court cases

   Keywords: real estate transfer tax, property compa ...
5. 10.07.2023

   Discussion draft for a law amending the Real Estate Transfer ...

   The Federal Ministry of Finance has sent the Federal States (“the Länder”) a draft bill to amend the Real Estate Transfer Tax Act for discussion. The main points of this bill are set out below: However, the draft may still be subject to changes in the discussion process or may even fail altogether.

   Categories: Tax & Legal News, Legislation

   Keywords: Real Estate, real estate transfer tax, s ...
6. 26.07.2021

   Purchase of land by trustee and transfer of exploitation rig ...

   The Supreme Tax Court, in a most recent decision, has again stated that in the case of the purchase of a property from a third party, which is held by a trustee for the trustor as the subsequent acquirer of the site, real estate transfer tax will arise twofold.

   Categories: Supreme Tax Court cases

   Keywords: real estate transfer tax, exploitation r ...
7. 10.05.2021

   Bundesrat approves the law amending the Real Estate Transfer ...

   On 07 May 2021, the Bundesrat approved the law amending the Real Estate Transfer Tax Act.

   Categories: Legislation

   Keywords: Share Deals, real estate transfer tax
8. 13.02.2020

   Tax exemption for group restructurings under Section 6a Real ...

   The tax exemption from real estate transfer tax (RETT) in the event of restructuring within a group under Section 6a of the Real Estate Transfer Tax Act (RETTA) does not constitute State Aid prohibited by EU law.

   Categories: Supreme Tax Court cases

   Keywords: Spin-off, real estate transfer tax, merg ...
9. 22.01.2020

   Real estate transfer tax: cancellation of a real estate tran ...

   In its decision of 4 November 2009 (II B 48/19), published on 16 January 2020, the Supreme Tax Court held that Section 16(1) No. 2 Real Estate Transfer Act (“RETT Act”) did not provide for a time limit for the cancellation of purchase transactions. The special limitation period set out in Section 16 (4) RETT related to the cancellation of the agreement itself and not to the date on which an application was made to cancel the RETT assessment.

   Categories: Supreme Tax Court cases

   Keywords: real estate transfer tax, limitation per ...
10. 06.11.2019

    UPDATE. Federal Cabinet adopts Real Estate Transfer Tax Amen ...

    On 31 July 2019, the Federal Cabinet adopted the government draft of the "Real Estate Transfer Tax Amendment Act".

    Categories: Legislation

    Keywords: real estate transfer tax, RETT, Finance ...
11. 21.12.2018

    European Court of Justice: RETT exemption on conversions not ...

    Back in June 2017 we informed you of the Supreme Tax Court's referral to the European Court of Justice of the question as to whether the RETT exemption on conversions(Section 6a Real Estate Transfer Tax Act) constitutes illicit State Aid.

    Categories: European Court of Justice

    Keywords: real estate transfer tax, illicit state ...
12. 20.06.2017

    Supreme Tax Court to refer question to European Court of Jus ...

    On 30 May 2017 the Supreme Tax Court decided to refer to the European Court of Justice (ECJ) the question of whether the real estate transfer tax (RETT) exemption on conversions - in Section 6a Real Estate Transfer Tax Act - constitutes illegal state aid.

    Categories: Supreme Tax Court cases

    Keywords: real estate transfer tax, state aid, Eur ...
13. 21.07.2015

    Real estate transfer tax on share transfers unconstitutional

    The Constitutional Court has held the set calculation of the value of the land held by a company when assessing the transfer of the company’s shares to real estate transfer tax to be unconstitutional. The government has been given until June 30, 2016 to enact a different formula, to be applied retroactively to January 1, 2009.

    Categories: PwC Reports

    Keywords: property, real estate transfer tax, valu ...
14. 18.03.2015

    Sole shareholder for RETT despite own shares held by company

    The Supreme Tax Court has held that real estate transfer tax falls due on the acquisition by a company of its own shares if only one other shareholder remains.

    Categories: Supreme Tax Court cases

    Keywords: share transfer, real estate transfer tax ...
15. 08.10.2014

    Future obligation not chargeable to real estate transfer tax

    The Supreme Tax Court has held that the acceptance by the acquirer of a plot of building land of an obligation to contribute towards the cost of building a kindergarten is not part of the consideration subject to real estate transfer tax if the obligation was not due at the time of the conveyance.

    Categories: Supreme Tax Court cases

    Keywords: real estate transfer tax, plot, building ...
16. 19.06.2013

    No RETT if indirect change in partnership incomplete

    The Supreme Tax Court has granted a taxpayer’s appeal against a real estate transfer tax assessment on the grounds that an indirect change in the shareholdings in the members of a property owning partnership was less than a complete change of interest in the partnership.

    Categories: Supreme Tax Court cases

    Keywords: real estate transfer tax, RETT
17. 29.05.2013

    Real estate transfer tax basis reduced if conveyancing costs ...

    The Supreme Tax Court has held that an agreement that the seller bear the legal costs of concluding and registering the conveyance leads to a corresponding reduction in the basis for charging real estate transfer tax. However, this does not apply in respect of the tax itself.

    Categories: Supreme Tax Court cases

    Keywords: real estate transfer tax, conveyance
18. 10.08.2011

    Real estate transfer tax on capital contribution of shares t ...

    The Supreme Tax Court has again held that the real estate transfer tax due on a contribution of a shareholding in another company is to be written off as a current operating expense.

    Categories: Supreme Tax Court cases

    Keywords: contributions, real estate transfer tax, ...
19. 22.06.2011

    Real estate transfer tax on share accumulation is an immedia ...

    The Supreme Tax Court has settled a long-standing dispute within the profession on the capitalisation or immediate write off of the real estate transfer tax payable when at least 95% of the share capital of a property-owning company is accumulated in one hand.

    Categories: Supreme Tax Court cases

    Keywords: real estate transfer tax, share accumula ...
20. 20.04.2011

    Real estate transfer tax on share acquisitions unconstitutio ...

    The Supreme Tax Court has asked the Constitutional Court for a ruling on the conformity with the constitution of the real estate transfer tax valuation provisions applicable to share transfers.

    Categories: Supreme Tax Court cases

    Keywords: share transfer, real estate transfer tax ...