Special provisions apply to other properties. A detailed description can be found in the Caston Report „Praxis der Unternehmensnachfolge“, 5. Edition, 2011
Business assets are exempt from taxation to the extent of 85 to 100 %. It depends on the legal form. Participations in partnerships are always business assets but shares in corporations only if the testator or donor has a direct interest of more than 25% or has concluded an agreement with other shareholders (so-called pool agreement).
The law links the exemption to several conditions, some of which are very difficult to meet. The main features are a retention period of 5 or 7 years, the maintenance of the business with its jobs and a limit on the proportion of administrative assets not required for the business. The amendment of the Inheritance Tax Act as of January 2010 retroactively applies the now amended lower threshold values to acquisitions as of 2009.
Gifts are largely subject to the same taxation rules as inheritances. The 10-year period must be taken into account: in order to calculate the value of the assets acquired, the acquisitions of the last 10 years are added together to determine whether the tax-free amount has been exceeded. Gifts older than 10 years are therefore excluded from the calculation.
We rightly talk about these topics in our Round Table meetings. The Round Table is an action of Herfurth & Partner and serves to clarify and secure wishes and decisions in the family in connection with assets, provision and succession.
The next dates can be found in the Round Table section (blue box on the homepage).
Further information on many topics can be found in the Publications section (right).