Germany: Corporate Tax

The Fiscal Court of Münster has ruled on a critical question in German reorganization tax law: when assessing whether a contribution in kind qualifies for tax-neutral treatment, should authorities examine the circumstances on the actual contribution date or the retroactive tax effective date? This decision challenges longstanding administrative guidance and could fundamentally reshape how businesses structure tax-efficient reorganizations involving partnership interests and special business assets.

Debt-to-equity swaps offer distressed companies a path to financial recovery by converting creditor receivables into equity, but they carry significant valuation risks that can expose new shareholders to unexpected liabilities. This analysis examines the legal framework governing these complex restructuring instruments in Germany, including insolvency plan proceedings and StaRUG restructuring procedures. Understanding the critical risk factors and implementation strategies is essential for creditors, distre

Germany's advance lump-sum taxation regime imposes annual deemed investment income on German tax-resident investors in qualifying investment funds, regardless of distributions.

Private equity (PE) funds with at least two German tax resident investors are required to file an annual partnership tax return in Germany, even if they do not have taxable presence in the Germany.

French société civile de placement immobilier ("SCPIs") represent an active and growing sector of the Irish real estate market.

The German parliament is likely to soon pass new rules regarding interest charged on taxes for the period between when the tax is incurred and the tax is assessed.

The German Constitutional Court (Bundesverfassungsgericht) issued a decision in respect to a tax law that had retroactive effect when it was enacted.

The German Act on the Adaption of Investment Fund Taxation in Connection with the AIFM Directive (the "AIFM Tax Act") that did not pass the legislative process prior to the Federal Election in September now passed both chambers of the German Parliament (resolution of the German Bundestag on 28 November 2013 and approval of the German Federal Council on 29 November 2013).

In our Client Information dated 28 June 2013 we provided information that negotiations on the German Act on the Adaption of Investment Fund Taxation in Connection with the AIFM Directive had temporarily halted.