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Planned tax changes – Draft bill for the German Annual Tax Act 2020

The draft bill for the German Annual Tax Act 2020 was published during the summer break. It is likely to be a while before the legislation is passed […]

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Gift tax issues related to the reservation of usufruct – Part I: Removing a usufructuary encumbrance

Encumbrance with a usufruct frequently constitutes an impediment to the subsequent sale of an asset. While the consent of the usufructuary is not […]

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Consolidated tax groups – Are there additional/ lower profit transfers that are generated apart from tax consolidation

The consolidated tax group for profit tax purposes is frequently characterised as the essence of group tax law. While the tax advantages are indeed […]

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Latest news on coronavirus-induced business closure as an insured event

If, in a business closure insurance policy that has been taken out, the insurer undertakes to provide coverage only for the diseases and pathogens […]

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Brexit and the UK limited – Is an end to the limitation of liability avoidable?

The UK’s exit from the EU on 31.1.2020 further raised the pressure on UK Limiteds (Ltds.) registered in German commercial registers. Admittedly, in […]

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Liquidity management – Generating cash effects through order-to-cash processes

So-called order-to-cash processes (O2C) cover all the business procedures from the placement of an order up until the payment is received. By using […]

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Determination of profit – Coronavirus emergency relief as taxable income

In a decree from 31.7.2020, the Bavarian State Tax Office clarified that coronavirus emergency relief was taxable.

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Trade tax add-backs for management remuneration

Trade tax has to be determined by adjusting taxable income as calculated for income or corporate tax purposes for so-called add-backs and reductions […]

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Gift tax liability following a transfer of domicile abroad

Those who transfer their domicile from Germany to another foreign country could nevertheless still be liable to pay tax in Germany. You could be […]

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Are travel costs that are reimbursed to grandparents for childcare tax deductible?

Travel costs can be tax deductible under certain circumstances. To this end, the Nuremberg tax court recently examined whether or not the travel costs […]

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