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Increased tax-exempt amount for vocational training – How parents can reduce their tax burden

When children are studying or undertaking vocational training their parents frequently help them out financially. If the child does not live at home […]

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New ruling on exit tax by the Bundesfinanzhof

Under the German Foreign Transactions Tax Act, exit tax has to be paid by those who hold substantial stakes in a corporation (at least 1%) and who […]

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Beware the tax trap in the case of share deals

The fundamental changes to the Real Estate Transfer Tax Act (Grunderwerbsteuergesetz, GrEStG) are now sufficiently well known. Their aim was to […]

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Sale of properties held as private assets – Recognise and avoid the tax pitfalls

Capital gains on personal property are not generally subject to income tax. Even the capital gain on a property that was used to generate income from […]

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Compensation payments made to tenants as immediately deductible expenses

According to a ruling recently issued by the Federal Fiscal Court (Bundesfinanzhof, BFH), payments made to tenants to compensate them for moving out […]

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Taxation in Germany of remuneration from abroad

If an employee residing in Germany works abroad then the question that arises is if and to what extent the income can also be taxed in Germany. Even […]

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Building assets with ETFs in an asset management GmbH [limited liability company] as opposed to private assets (Part 2)

The effects of compound interest while building assets are mainly impacted by the tax implications. In the previous article we had a look at private […]

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Usufruct of a benefit as abusive structuring?

When usufruct agreements are made between, in particular, parents and their (under-age) children, disputes over the recognition for tax purposes […]

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Pension commitments – No provision where there are harmful reservations

The requirements for creating a provision within the meaning of Section 6a of the Income Tax Act (Einkommensteuergesetz, EStG) would generally not be […]

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Withholding tax for construction services and its tax risks for businesses, lessors & Co.

The German fiscal administration recently revised its approx. 20-year-old circular on the application of withholding tax for construction services in […]

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