In two recent judgements, the German Federal Fiscal Court (BFH) has confirmed that the profit from an employee's participation in their employer's company is not taxable as income from employment, even if the participation was previously acquired at a discount ..read more

The Financing for the Future Act (ZuFinG) comprises, in addition to a number of other reforms to strengthen Germany as a fund jurisdiction, the VAT exemption of management services for all Alternative Investment Funds (AIFs), something for which industry representatives have hoped for over 15 years. The previous legal uncertainty will thus be lifted from 1 January 2024. Following the Bundestag's approval of the ZuFinG and the VAT exemption it contains, the Bundesrat has now also given its consent ..read more

This country-specific Q&A provides an overview of private client laws and regulations applicable in Germany. It covers common issues in private client laws, including pre-entry tax planning, connection factors, taxation issues on inward investment, succession planning, trusts and foundations, immigration issues and tax treaties ..read more

In its decision dated September 6, 2023 (I R 35/20), published on January 11, 2024, the First Senate of the German Federal Fiscal Court (BFH) dealt with the German exit taxation pursuant to Section 6 German Foreign Tax Act (AStG) in connection with relocations to Switzerland. In its decision the BFH comments on the much-discussed "Wächtler" decision of the European Court of Justice (ECJ ..read more

The German federal parliament has passed an amendment to the law to allow foreign non-profit organizations to receive a refund of German capital gains tax. However, the requirements for this are strict and will probably almost only be fulfilled by non-profit organizations from another EU or EEA member state ..read more

The first senate of the Federal Fiscal Court (Bundesfinanzhof, BFH) recently dealt with the question of maintaining a so-called tax contribution account for private foundations under civil law with legal capacity, which has been the subject of much discussion in the past. On the other hand, the BFH left open another question that is also relevant for practice ..read more

On 14 February 2023, the Federal Fiscal Court (BFH) ruled on the taxability of gains from the sale of various cryptocurrencies. It primarily dealt with the concept of a taxable asset and the structural tax enforcement deficit. This ruling joins the majority of previous Regional Fiscal Courts´ case law on the taxation of cryptocurrencies and results in more certainty for taxpayers ..read more

Learn more about the regulatory framework in fund management in Germany with a focus on fund authorisation and licensing, fund marketing, the different types of funds as well as the current trends in the industry ..read more

The German Act to Modernize the Law on Partnerships (MoPeG) is also accompanied by changes in real estate transfer tax law, which makes accompanying tax measures necessary. The Federal Ministry of Finance has now presented a discussion draft for the amendment of the Real Estate Transfer Tax Act – with different scenarios ..read more

A bequest of domestic real estate can be exempt from inheritance tax, as a recent decision of the German Federal Fiscal Court shows ..read more