An overview after the promulgation in the Federal Law Gazette on November 9, 2016
by Dr. Stefan Königer (Certified Tax Advisor)
According to the new Inheritance and Gift Tax Act (IGTA), a multitude of (systematic) changes results for the determination of non-privileged assets, above all due to the consideration of debts, a materiality limit for non-operating assets as well as the joint financial statement. The requirements of the newly introduced 30% valuation haircut in case of limitations on disposition for family businesses will hardly be achievable in practice. Bulk acquisitions starting from EUR 26 million are henceforth leading to definite tax burdens. Up to an acquisition of maximum EUR 90 million, a decreasing tax relief is foreseen; furthermore, 50% of the (received) private assets or the non-privileged business assets are to be used to pay the tax. The retrospectivity of the IGTA/Valuation Act of July 1, 2016 and January 1, 2016 respectively will lead to the Federal Constitutional Court promptly having to deal with the new regulations again. [Read more…] about The New German Inheritance and Gift Tax Act – finally meeting the constitutional principles?