Since 2010, the Global Law Experts annual awards have been celebrating excellence, innovation and performance across the legal communities from around the world.
posted 4 years ago
Shortly before the parliamentary summer recess, the legislative processes for the two legislative initiatives have entered the critical phase.
The hearings in the Bundestag on May 3, 2021 were followed by intensive debates among the members of parliament regarding the contents of the KöMoG, as well as the ATAD-UmsG. Since May 19, 2021, the recommendations of the Bundestag Finance Committee for the KöMoG and the ATAD-UmsG have been available. On May 21, 2021, both bills were passed by the Bundestag taking into account the amendments suggested by the Finance Committee. On June 28, 2021, the Bundesrat (upper house of the German parliament) is expected to give its approval for the two drafts.
Prior to the vote in the Bundestag, the Bundestag Finance Committee had recommended a number of changes to both bills. The main changes compared with the previous government draft are:
KöMoG:
Amendments to sec. 5 and 6 of the GrEStG were newly included in the Bundestag Finance Committee’s recommended resolution. Thus, the option leads to a partial denial of the preferential regulations. According to the explanatory memorandum to the law, this is intended to avoid tax structuring.
The amendments of the Finance Committee were adopted by the Bundestag and have thus been fully considered in the final bill of the Bundestag.
The Option is to be applicable for the first time in 2022, meaning that applications can already be submitted in 2021. The Finance Committee has thus not complied with the wish of the federal states to allow the option to be applied for the first time in 2023.
ATAD-UmsG:
The tightening of the transfer pricing rules for financing relationships/services will therefore not be introduced with the ATAD Implementation Act after all. These were previously rejected in connection with the AbzStEntModG. The proposals of the Finance Committee have also been fully considered in the final draft of the Bundestag bill.
There was also movement in reforming the real estate transfer tax. On May 7, 2021 the Bundesrat approved the amendments passed by the Bundestag. On May 17, 2021, the Real Estate Transfer Tax Amendment Act was published in the Federal Law Gazette. Therefore, the new regulations, including the numerous special application regulations must be observed from July 1, 2021.
We will keep you informed about the further development of the pending bills.
We are happy to answer any questions you may have.
Author
No results available
Resetposted 1 day ago
posted 1 day ago
posted 1 day ago
posted 1 day ago
posted 5 days ago
No results available
ResetFind the right Legal Expert for your business
Sign up for the latest legal briefings and news within Global Law Experts’ community, as well as a whole host of features, editorial and conference updates direct to your email inbox.
Naturally you can unsubscribe at any time.
Global Law Experts is dedicated to providing exceptional legal services to clients around the world. With a vast network of highly skilled and experienced lawyers, we are committed to delivering innovative and tailored solutions to meet the diverse needs of our clients in various jurisdictions.