On 31 July 2019, the Federal Cabinet adopted the government draft of the “Real Estate Transfer Tax Amendment Act”. The aim of the draft bill is to tighten the real estate transfer tax (RETT) rules on so-called share deals, which has been under consideration for some time. Continue reading
Tax & Legal
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. On 19 December 2018, the European Court of Justice held in A-Brauerei (C-374/17) that the RETT exemption granted in the case before it of an upstream merger did not infringe the State Aid rules. Continue reading
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. Continue reading
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. Continue reading
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. Continue reading
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. Continue reading
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. Continue reading
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. Continue reading
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.
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.