Germany: Limitation on inheritance and gift tax relief applicable to regular operating companies

Federal Tax Court decision

Federal Tax Court decision

The Federal Tax Court (BFH) recently held that the 90% test, under which shares in a company are not eligible for inheritance and gift tax relief if the sum of the administrative assets (including all financial assets) is greater than 90% of the company’s value, also applies to regular operating companies.

It is unclear how the tax authorities will respond to this decision, but it is anticipated that they will soon provide clarity on their position on the issue.

Read a February 2024 report prepared by the KPMG member firm in Germany



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