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An about-turn on the tax tainting rule on losses from commercial activity

The Federal Fiscal Court (Bundesfinanzhof, BFH) abandoned its earlier ruling and decided that not just profits but also losses from a commercial […]

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Revenue recognition in the case of long-term contracts

Large projects normally extend over longer time periods. From a financial accounting perspective, the question that arises is: in which financial year […]

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The taxation of a financial settlement when an employee in Germany moves abroad

When an employee commences a new job abroad and has thus given up a previous job in Germany and receives payment of a financial settlement, the […]

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Stricter rules for the cross-border transfer of functions as of 2022

If business functions are relocated from Germany to affiliated foreign companies or permanent establishments then the German fiscal authorities will […]

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Tax-optimised transfer of own home to relatives

In the case of inheritance, while it is possible to transfer an owner-occupied home to the remaining spouse free of inheritance tax, nevertheless, […]

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Child benefit entitlement – Disputes following initial vocational training

The entitlement to child benefit continues to exist even after the child’s 18th birthday and at least until their initial vocational training has been […]

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Property valuation – Important changes to the German Valuation Act in the 2022 Annual Tax Act

The draft of the 2022 Annual Tax Act (Jahressteuergesetz, JStG) contains – besides many other changes (please see our previous report) – amendments to […]

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Requirements for the recognition of childcare costs for tax purposes

Deductions for childcare costs may generally be claimed in your tax return. It is however questionable how spouses who live in permanent separation […]

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New federal authority for tackling financial crime

The Federal Ministry of Finance (Bundesministerium der Finanzen, BMF) has announced that it is pooling forces of the state in a newly created […]

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Input tax deduction – Right to choose classification in the case of mixed-use items

Input tax deduction for items that are used not just for business purposes requires these items to be promptly allocated to business assets. Recently, […]

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