Germany: Group tax exemption, real estate transfer tax | KPMG | GLOBAL

Germany: Group tax exemption, real estate transfer tax

Germany: Group tax exemption, real estate transfer tax

There is uncertainty concerning the group tax exemption from Germany’s real estate transfer tax because it is not known whether the German government submitted to the European Commission a request for authorization that this group exemption from the transfer tax complies the the EU state aid rules.


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Until the EC reaches a conclusion concerning the group tax exemption, the tax treatment in certain group restructurings will be unsettled.


Read an April 2016 report [PDF 343 KB] prepared by the KPMG member firm in Germany: German Tax Monthly (April 2016)


Other topics discussed in this KPMG report concern:

  • Repeal of June 2015 guidance concerning profit realization for installments paid under contracts for work, restricting application of the rules to installment payments made to engineers and architects for planning services 
  • A case interpreting the 10% threshold in the context of the earning stripping rules 
  • A determination of the constitutionality of non-recognition of loss on acquisition when changing legal form
  • A court case concerning the “motive test” under the controlled foreign company (CFC) rules

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