Germany: New draft bill amending Tax Advisory Act; other tax developments
New draft bill also includes changes to local trade tax and real estate transfer tax.
The parliamentary groups of the governing coalition submitted a new draft of the Ninth Act Amending the Tax Advisory Act and Other Tax Regulations. According to the explanatory memorandum, the new draft is similar to the prior draft bill, which the lower house of Parliament (Bundestag) passed on April 24, 2026, but which the upper house of Parliament (Bundesrat) refused to approve on May 8, 2026.
In addition to amendments to the Tax Advisory Act, the new draft bill provides for an increase in the minimum local trade tax rate and amendments to the Real Estate Transfer Tax Act (to exclude possible double taxation in the event of a time lag between signing and closing, to extend the notification period for real estate acquisitions, and to provide that tax reliefs for partnerships continue to apply).
The new draft bill must now go through the parliamentary process again. However, the legislative process can be expedited because the bill was introduced by the coalition parties from within the parliament. The bill therefore does not first need to be submitted to the Bundesrat for comment.
Other recent tax developments in Germany include:
- Federal Tax Court (III R 28/24): Trade tax add-back for renting event spaces and hotel rooms
- Federal Tax Court (VI R 25/24): Tax exemption for special COVID-19 payments
- Lower Tax Court of Münster (13 K 905/24 K): Partial write-down of shareholder loan to start-up company
- Federal Central Tax Office: Acceptance and exchange of minimum tax reports
- Federal Ministry of Finance: Guidance on turnaround exemption clause as an exception to loss limitation rules in event of change of control
Read a June 2026 report prepared by the KPMG member firm in Germany