Marina Leker

The German Federal Constitunional Court announced its decision on the constitutionality of the solidarity surcharge.

Remuneration agreements between a stock corporation and a member of the management board who is also a minority shareholder are to be recognized under tax law, apart from individual exceptions, according to the BFH in its decision of October 24, 2024 (file no. I R 36/22).

Companies that work with electronic cash register systems must register them with the tax office. There is still a transitional period until July 2025.

A business lease is not detrimental if the essential business basis is leased and it is exclusively one’s own property.

If the limited partner's capital account became negative following the transfer of a Section 6b reserve, losses allocated to the limited partner increase the negative balance and can therefore only be offset.

The German tax authorities published the guidance for Section 4k EStG in which it clarifies definitions and controversial interpretation issues.

According to the ruling of the German Federal Fiscal Court of November 19, 2024, case no. VIII R 8/22, the loss from a conditional write-off is to be taken into account at the time of the write-off.

Die Vereinbarung von Darlehensverträgen mit einem darin ausgewiesenen besonders niedrigen Zinssatz kann eine steuerpflichtige Schenkung auslösen, wie das Urteil des FG Mecklenburg-Vorpommern vom 27.04.2022, Az. 3 K 273/20, (Revision BFH II R 20/22) zeigt.

In its ruling of October 17, 2024 (case no. III R 1/23), the BFH allows a “technically conditional” exception in the event of a sale of the real estate on December 31, 11:59 p.m.

To determine the actual costs for other business trips, a special leasing payment must be distributed on an accrual basis in accordance with the BFH ruling of November 21, 2024 (case reference VI R 9/22).

Capital income from a shareholding of at least 25 % in a corporation is not subject to final taxation at the separate rate for income from capital assets if the taxpayer submits an application for taxation at the standard rate in accordance with section 32d (2) no. 3 of the German Income Tax Act (EStG) together with the income tax return for the respective assessment period at the latest.

If a taxpayer is no longer able to pursue gainful employment as a result of a damage event caused by a third party, he or she can receive so-called loss of earnings compensation in accordance with civil law standards.

The German Federal Council passed both the Annual Tax Act 2024 and the Act on Tax Exemption of the Existence Minimum 2024 on November 22, 2024.

According to the new legal regulation in § 3 no. 72 of the German Income Tax Act (EStG), introduced with the Annual Tax Act 2022, income from certain photovoltaic systems is tax-free from the assessment period 2022.

According to the judgment of the Hamburg Fiscal Court of May 15, 2024, case reference 2 K 76/22 (final), a pallet conveyor system installed in a warehouse next to a freight elevator is a piece of operating equipment whose co-leasing excludes the extended reduction in accordance with § 9 no. 1 sentence 2 of the German Trade Tax Act.

The business identification number (W-IdNr.) will be issued in steps by the Federal Central Tax Office (BZSt) from November 2024 without the need for an application. 

According to the ruling of the BFH dated September 28, 2022, VIII R 20/20, a resolution breaking through the articles of partenership on an incongruent advance distribution of a GmbH is also to be used as the basis for taxation under certain formal requirements as a distribution resolution effective under civil law.

In principle, appeals and lawsuits do not have a suspensive effect in tax law. Under certain circumstances, however - particularly if there are doubts about the legality of the contested assessment - this can be ordered separately by the tax office or tax court by means of a suspension of enforcement.

According to the BFH ruling of June 5, 2024 (case no. IV R 22/22), a provision for the old-age leisure time must also be recognized for tax purposes.

The German federal government has adopted the drafts for an Act on the Further Development of Tax Law and the Adjustment of the Income Tax Rate (“Tax Further Development Act”) and for an Act on the Tax Exemption of the Minimum Subsistence Income 2024 - the draft bill was still entitled “Second Annual Tax Act 2024”. We would like to inform you about the main changes planned so far, which are not or only partially linked to each other.

The case of the ruling of the German Federal Fiscal Court dated November 9, 2023, case no. IV R 9/21, involved a German limited partnership with a limited liability company as general partner (so called GmbH & Co. KG) in which another partnership was the sole limited partner, which also held all shares in the limited liability company as general partner.

A transfer of assets from a corporation to a shareholder (hidden profit distribution, "vGA-Verdeckte Gewinnausschüttung") caused by the corporate relationship requires the intention to make a contribution.

On February 21, 2024, the Mediation Committee of the German Federal Parliament and the German Federal Council proposed amendments to the controversial “Act to Strengthen Growth Opportunities, Investment and Innovation as well as Tax Simplification and Fairness” (Growth Opportunities Act), which the German Federal Parliament passed in its session on February 23, 2024.

As part of anticipated succession, assets - such as real estate in particular - are often transferred to the next generation in return for long-term installment payments.

We present the most important legislative changes introduced by the Act on the Implementation of the DAC 7 Directive and the Modernisation of Tax Procedure Law.