Germany: Inheritance Tax

In individual cases, distributions from a taxopaque foreign family trust to a German tax resident beneficiary may be subject to both gift tax and income tax.

Last year, the German Federal Fiscal Court [Bundesfinanzhof, BFH] ruled that when companies are transferred to the next generation, an application for so-called full exemption can be made...

The German Federal Fiscal Court (Bundesfinanzhof, BFH) ruled on 23 November 2022 that real estate located in Germany can be transferred tax-free by way of foreign bequest if neither...

The Federal Constitutional Court announced that its long-awaited judgment on the Inheritance and Gift Tax Act will be delivered on 17 December 2014

The Mediation Committee of the German Bundestag and Bundesrat has recently proposed important changes in German tax law.

With its decision of 5 October 2004 the Bundesgerichtshof (Federal Supreme Court) of Germany (the "Court") has abandoned its decisional practice that the scope of a product market due to legal principles is geographically limited to the territory of Germany. In its decision the Court recognizes the concept of market definition based on economic principles and acknowledges that product markets may be transnational.

German banks have issued "Genussscheine" qualifying as tier two banking capital. Such Genussscheine have been subscribed by UK corporate investors. Under the German/UK Tax Treaty, Genussscheine are named in the dividend article providing for a 15% German withholding tax. For many years, the German Federal Fiscal Office therefore rejected applications for the full refund of the German taxes withheld. In the judgement of December 11, 2003 the Lower Fiscal Court of Cologne now decided that income f