{"id":10108,"date":"2025-07-16T06:35:00","date_gmt":"2025-07-16T04:35:00","guid":{"rendered":"https:\/\/honert.de\/?p=10108"},"modified":"2025-07-16T11:48:33","modified_gmt":"2025-07-16T09:48:33","slug":"loan-waiver-in-crisis-situations","status":"publish","type":"post","link":"https:\/\/honert.de\/en\/loan-waiver-in-crisis-situations\/","title":{"rendered":"LOAN WAIVER IN CRISIS SITUATIONS"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-4vlxdo9-42dff1d7b424bd61ce319e79e54698bc\">\n.avia-section.av-4vlxdo9-42dff1d7b424bd61ce319e79e54698bc{\nbackground-repeat:no-repeat;\nbackground-image:url(https:\/\/honert.de\/wp-content\/uploads\/3629.jpg);\nbackground-position:0% 0%;\nbackground-attachment:scroll;\n}\n<\/style>\n<div id='av_section_1'  class='avia-section av-4vlxdo9-42dff1d7b424bd61ce319e79e54698bc main_color avia-section-default avia-no-shadow  avia-builder-el-0  el_before_av_section  avia-builder-el-first  hide_on_print avia-full-stretch avia-bg-style-scroll av-minimum-height av-minimum-height-40 av-height-40  container_wrap sidebar_right'  data-section-bg-repeat='stretch' data-av_minimum_height_pc='40' data-av_min_height_opt='40'><div class='container av-section-cont-open' ><main  role=\"main\" itemprop=\"mainContentOfPage\"  class='template-page content  av-content-small alpha units'><div class='post-entry post-entry-type-page post-entry-10108'><div class='entry-content-wrapper clearfix'>\n<\/div><\/div><\/main><!-- close content main element --><\/div><\/div><div id='av_section_2'  class='avia-section av-4gtwfi1-044f9fd7e241e120a3bd83caca0fcd92 main_color avia-section-default avia-no-shadow  avia-builder-el-1  el_after_av_section  avia-builder-el-last  avia-bg-style-scroll container_wrap sidebar_right'  ><div class='container av-section-cont-open' ><div class='template-page content  av-content-small alpha units'><div class='post-entry post-entry-type-page post-entry-10108'><div class='entry-content-wrapper clearfix'>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-3vlqkk9-b7af4bcb4198b73cfce26fa51f3d9da6\">\n.flex_column.av-3vlqkk9-b7af4bcb4198b73cfce26fa51f3d9da6{\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div  class='flex_column av-3vlqkk9-b7af4bcb4198b73cfce26fa51f3d9da6 av_two_third  avia-builder-el-2  el_before_av_two_third  avia-builder-el-first  first flex_column_div av-zero-column-padding  '     ><style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-md5ruvoz-b6271e578879ce04c714ac853479d18b\">\n#top .av-special-heading.av-md5ruvoz-b6271e578879ce04c714ac853479d18b{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-md5ruvoz-b6271e578879ce04c714ac853479d18b .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-md5ruvoz-b6271e578879ce04c714ac853479d18b .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-md5ruvoz-b6271e578879ce04c714ac853479d18b av-special-heading-h1 blockquote modern-quote  avia-builder-el-3  avia-builder-el-no-sibling '><div class='av-subheading av-subheading_above'>16. July 2025\n<\/div><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >LOAN WAIVER IN CRISIS SITUATIONS<\/h1><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-3b8y97d-411ee64c8112951f8557f1222f07e873\">\n.flex_column.av-3b8y97d-411ee64c8112951f8557f1222f07e873{\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div  class='flex_column av-3b8y97d-411ee64c8112951f8557f1222f07e873 av_two_third  avia-builder-el-4  el_after_av_two_third  el_before_av_two_third  first flex_column_div av-zero-column-padding  column-top-margin'     ><section  class='av_textblock_section av-md5rv8bd-5ab0615e143933e1dc2c048a5a00fec3 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p><strong>The loss incurred as a result of a loan waiver to a corporation can be taken into account at shareholder level. A distinction must be made here between the recoverable and the non-recoverable portion of the loan, as only the latter can be recognized as a loss. If the waiver is made under a debtor warrant agreement, the loss must be recognized at the time of the waiver.<\/strong><!--more--><\/p>\n<\/div><\/section><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-2yyvwjd-36f63e579ff97ed95c97e80b1f3bee54\">\n.flex_column.av-2yyvwjd-36f63e579ff97ed95c97e80b1f3bee54{\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div  class='flex_column av-2yyvwjd-36f63e579ff97ed95c97e80b1f3bee54 av_two_third  avia-builder-el-6  el_after_av_two_third  el_before_av_one_third  first flex_column_div av-zero-column-padding  column-top-margin'     ><section  class='av_textblock_section av-md5rx2u1-d3d6506b1bc7471a307f630c8637865a '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><h2>I. General information<\/h2>\n<p>Shareholder loans are a common way of providing a company with liquidity, particularly in the SME sector. In crisis situations, the company&#8217;s equity is often strengthened by agreeing on a loan waiver. The loan waiver is sometimes combined with an agreement whereby the waiver is declared subject to the condition subsequent that the company is economically or financially in a position to repay the loan again (so-called debtor warrant agreement). A loan waiver under a debtor warrant agreement has various tax implications, which the Federal Fiscal Court (BFH) recently dealt with once again (judgment of 19 November 2024 &#8211; VIII R 8\/22). The following aspects had to be clarified in the case:<\/p>\n<ul>\n<li>Time and scope of loss recognition (see II.)<\/li>\n<li>Allocation of the loss to income from capital assets (see III.)<\/li>\n<\/ul>\n<p>The following statements only apply with regard to shareholder loans to corporations.<\/p>\n<h2>II. Timing and scope of loss recognition<\/h2>\n<p>It should be noted in advance that it is irrelevant from a tax perspective whether the loan is waived or the claim is assigned to the company.<br \/>When determining whether and to what extent the loss is to be taken into account, a distinction must be made between the recoverable and the non-recoverable portion of the loan claim. The recoverable portion of the loan leads to a hidden contribution which increases the shareholder&#8217;s acquisition costs relating to the shareholding in the corporation. This process is therefore tax-neutral. However, to the extent the loan does not have value, there is no hidden contribution; rather, the shareholder incurs a loss as a result. In the opinion of the BFH, this loss must be taken into account at the time of the waiver. It is irrelevant that a debtor warrant was been agreed upon. This is because a waiver is merely a one-off event, the legal effects of which occur immediately; there is no delay in these legal effects until a point in time at which the (non-)occurrence of a debtor warrant has been or may be established.<br \/>A waiver of the non-recoverable portion of the loan also does not lead to acquisition costs for a &#8220;betterment entitlement&#8221;. One could think about this concept as the shareholder acquires an expectancy right as a result of the debtor warrant agreement. However, in the opinion of the BFH, this expectancy right represents an independent asset which is not identical to the extinguished loan claim. The acquisition costs of the non-recoverable part of the loan claim are therefore not to be allocated to the expectancy right, which would prevent losses from being taken into account.<br \/>At the level of the corporation, the loan waiver for a worthless loan is recognized in full in profit or loss; an off-balance sheet adjustment is made if and to the extent there is a hidden contribution (= recoverable portion of the loan).<\/p>\n<h2>III. Allocation of the loss to income from capital assets<\/h2>\n<p>In the case in question, the shareholder providing the loan held at least a 1% stake in the corporation. In this context, it was questionable whether the loan loss should be given priority under \u00a7 17 German Income Tax Act (EStG). This could be inferred from the subsidiarity principle of \u00a7 20 para. 8 sentence 1 EStG, according to which commercial income takes precedence over capital income.<br \/>In the opinion of the BFH, however, losses can only be taken into account as part of income from capital assets (\u00a7 20 EStG) if the loan waiver &#8211; as in the case in question &#8211; did not affect income in accordance with \u00a7 17 EStG. In the case in question, a loss could therefore be taken into account as part of capital income (\u00a7 20 EStG). However, if the loan waiver were to have an additional effect on income under \u00a7 17 EStG at a later date, double consideration is not justified and the loss taken into account in the context of income under Section 20 (2) EStG would then have to be corrected under procedural law.<\/p>\n<h2>IV. Conclusion and outlook<\/h2>\n<p>In the case of a shareholder loan waiver, the transaction must be divided into two taxable events. If and to the extent the loan is recoverable, the waiver results in subsequent acquisition costs for the investment (&#8220;acquisition cost portion&#8221;). The non-recoverable portion must be recognized as a loss. The time at which the loss is recognized depends on the time at which the loan is waived. Any recovery agreements are not relevant at this point in time.<br \/>It should be noted in this case that \u00a7 17 para. 2a EStG was not yet applicable in the case in dispute in accordance with \u00a7 52 para. 25a sentence 1 EStG, so that the loan losses covered by the new version of \u00a7 17 para. 2a EStG can no longer be taken into account in accordance with \u00a7 20 para. 2 EStG.<\/p>\n<\/div><\/section><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-2hlg1jt-b7a08911c961f26669ef4bb6b5467a1a\">\n.flex_column.av-2hlg1jt-b7a08911c961f26669ef4bb6b5467a1a{\nborder-radius:0px 0px 0px 0px;\npadding:7px 0px 0px 0px;\n}\n<\/style>\n<div  class='flex_column av-2hlg1jt-b7a08911c961f26669ef4bb6b5467a1a av_one_third  avia-builder-el-8  el_after_av_two_third  avia-builder-el-last  sy-only-desktop hide_on_print flex_column_div  column-top-margin'     ><p><div  class='avia-builder-widget-area clearfix  avia-builder-el-9  el_before_av_textblock  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class='avia_textblock'  itemprop=\"text\" ><h2>More information on this topic<\/h2>\n<ul class=\"sy-list-margin\">\n<li><a href=\"https:\/\/honert.de\/en\/taetigkeitsgebiete\/mergers-acquisitions\/\">Mergers &#038; Acquisitions (M&#038;A)<\/a><\/li>\n<li><a href=\"https:\/\/honert.de\/en\/taetigkeitsgebiete\/corporate-law\/\">Corporate Law<\/a><\/li>\n<\/ul>\n<\/div><\/section><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-17bah4p-f4b597ae1a2935b6a64c2e95e5a9352e\">\n#top .hr.hr-invisible.av-17bah4p-f4b597ae1a2935b6a64c2e95e5a9352e{\nheight:8px;\n}\n<\/style>\n<div  class='hr av-17bah4p-f4b597ae1a2935b6a64c2e95e5a9352e hr-invisible  avia-builder-el-11  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div><br \/>\n<section  class='av_textblock_section av-qtvqhl-11c403f20ad533275aa2a1c10617cd1c '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" 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to a corporation can be taken into account at shareholder level. A distinction must be made here between the recoverable and the non-recoverable portion of the loan, as only the latter can be recognized as a loss. If the waiver is made under a debtor [&hellip;]<\/p>\n","protected":false},"author":26,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"mc4wp_mailchimp_campaign":[],"footnotes":""},"categories":[263],"tags":[],"class_list":["post-10108","post","type-post","status-publish","format-standard","hentry","category-2025-q2-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/posts\/10108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/comments?post=10108"}],"version-history":[{"count":6,"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/posts\/10108\/revisions"}],"predecessor-version":[{"id":10116,"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/posts\/10108\/revisions\/10116"}],"wp:attachment":[{"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/media?parent=10108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/categories?post=10108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/tags?post=10108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}