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Federal Fiscal Court Issues Two Rulings on the Requirements for a Consolidated Tax Group for Income Tax Purposes - Legal Insights...

In two rulings, the Federal Fiscal Court (BFH) ruled in favor of the taxpayer on the requirements for a consolidated tax group for income tax purposes. Managing holding partnership as controlling company (judgment of November...more

Düsseldorf Fiscal Court: Legal and Consulting Fees for Sale of Second-Tier Subsidiary Fully Deductible Irrespective of an Existing...

In its decision dated February 26, 2025 (7 K 1811/21 K), the Düsseldorf Fiscal Court concluded that legal and consulting fees incurred by the indirect sale of a second-tier subsidiary by the subsidiary are deductible business...more

Federal Fiscal Court on Trade Tax for Commercially Infected Upper-Tier Partnerships - Legal Insights Germany

The German Federal Fiscal Court (BFH) confirmed its case law according to which the commercial infection of an upper-tier partnership pursuant to Section 15 para. 3 no. 1 sentence 1 alt. 2 German Income Tax Code...more

German Tax Legislation Before the End of the Legislative Period

Due to the end of the so-called traffic light coalition and the upcoming new elections in Germany, numerous draft tax bills will not be adopted prior to the end of this legislative period. However, the Annual Tax Act 2024 was...more

German Federal Fiscal Court Comments on Several Aspects of Real Estate Transfer Tax for Share Deals

In several recently published rulings, the German Federal Fiscal Court (BFH) has commented on several aspects of real estate transfer tax (RETT) in case of share deals—also contrary to the previous opinion of the tax...more

Finance Ministry Circular on the Tax Recognition of Incongruent Profit Distributions

In its ruling dated September 28, 2022 (VIII R 20/20), the Federal Fiscal Court (BFH) decided, contrary to the previous opinion of the tax authorities, that a resolution on an incongruent distribution of a limited liability...more

Changes to German Tax Law - What Is Planned?

The German legislator is currently introducing a large number of tax law changes in various draft bills. This article provides an overview of the most important planned changes. The draft Annual Tax Act 2024 (JStG 2024)...more

Federal Parliament Approves Compromise of the Mediation Committee

As part of the legislative process, the Federal Council (Bundesrat) convened the Mediation Committee at the end of November 2023. For this reason, some regulations that were initially provided for in the Growth Opportunities...more

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