In our 2019 | Q2 newsletter we had already addressed the planned real estate transfer tax (RETT) reform which is intended to prevent specific share deal transactions. The legislative process has been on hold since then. However, on 7 May 2021, the corresponding bill has been passed by the Bundesrat. The amendments will enter into force on 1 July 2021.
The Act to Modernize Corporate Income Tax Law is intended to eliminate the differences that currently exist in the taxation of partnerships and corporations. A central component of the bill is the introduction of a so-called option model (also known as “check-the-box” election), which in the future is to open up the possibility for commercial partnerships to be treated like a corporation for income tax purposes upon application. This newsletter article outlines the key points of the planned option model and also contains an initial assessment of the constellations in which the change of taxation system may be advantageous.
As already announced in 2020, the 16th and 17th Amendment Ordinances to the AWV significantly expanded investment control in both the civilian and military sector, so that in the future considerably more company acquisitions, shareholding acquisitions and so-called asset deals in both the civilian and military sector may be subject to a reporting obligation and an enforcement ban.