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Gains on disposal when selling an interest in a partnership are not usually subject to trade tax. According to the Federal Fiscal Court judgment of 21/11/2024 (file ref. IV R 26/22), this principle does not apply in certain circumstances, however, resulting in the gains on disposal being subject to trade tax. In these cases, the trade tax is not charged to the seller but to the partnership. This can result in undesirable burdens on partners who are not involved in the sale.

Operators of digital platforms must submit their report of traders on their platform to the Federal Central Tax Office (BZSt) by 31 January 2025. Find out what you need to do in this article.

The tax group for income tax purposes is an essential tool for tax planning. It allows companies to offset profits against losses within a group of companies and thereby make use of tax advantages. The new BMF Circular on the Reorganisation Tax Act of 2 January 2025 brings numerous changes and amendments. They particularly concern changes in the law and current Federal Fiscal Court (Bundesfinanzhof) case law. This Circular replaces the 2011 version and provides more legal certainty in many cases – but not in every area. The new rules on the contribution solution, retrospective financial integration and allocation of tax group income and profits from transfers are particularly relevant to practice.

Spain is stepping up its efforts to digitise business transactions by implementing mandatory e-invoicing for companies and professionals. As part of our ongoing series “E-invoicing in the EU”, in this article we focus on the latest developments in Spain, highlighting the key aspects of Spain’s e-invoicing system, its scope and practical insights from Grant Thornton Spain.

In a recently published judgment, the Federal Fiscal Court (Bundesfinanzhof) gave its opinion on the tax exemption of medical treatments like hair transplants. These kinds of treatments may be tax-exempt, but it depends on whether they can be assessed as a medical condition. The judgment raises questions concerning where to draw the line and in which cases the principles of the judgment may apply beyond the case.

The break-up of the “traffic light” coalition and the Bundestag elections that were brought forward to 23 February 2025 are having a considerable impact on tax reforms and plans for legislation. The lack of a majority makes concluding key legislative plans more difficult.

With the start of 2025, significant changes to the law governing payroll tax and social insurance came into force. From the abolition of the “one fifth rule” for payroll deductions to new long-term care insurance contributions to changes to deadlines for applying for allowances – many rules have a direct influence on everyday accounting. Current case law and tax authority guidelines also offer options for structuring. This article gives you a compact overview of the most important points.

After a wait of over a year, on 5 December 2024 the German Federal Ministry of Finance published its final guidance on application of the ban on deduction of operational expenses under Section 4k of the German Income Tax Act (Einkommensteuergesetz – EStG) for hybrid mismatches. It includes crucial statements on applying Section 4k, which are of particular practical importance to US inbound structures. Here we’ve summarised the most crucial effects for companies concerned.

Stricter requirements for the recognition of expenses from cross-border financing relationships: The Annual Tax Act 2024 disappoints hopes for a true grandfathering protection for existing loans. This article explains what companies now need to bear in mind.

From the start of 2025 new thresholds apply to social insurance. The thresholds have been adjusted to match the trend in income.

For private persons, protecting their privacy is a central need, both personally and in terms of their wealth structures. A new judgment by the German Administrative Court Cologne (Verwal-tungsgericht Köln) (17/07/2024–13 K 5996/19) protect the privacy of wealthy private individuals.

The rules on the taxation of profit and loss from foreign currency transactions are being changed according to the Federal Ministry of Finance Circular of May 2022. It should be assumed that starting from tax year 2025 the tax authorities are going to start looking more closely at foreign currency balances. What does this mean for investors, and what needs to be done before the end of the year?

Poland will be among the first countries to implement mandatory e-invoicing for B2B transactions, starting in February 2026. As part of our series “E-invoicing in the EU” we will cover Poland’s experiences with the progression of this new regulation, changes to expect for businesses operating in Poland, and highlight how the Polish Grant Thornton firm approaches the implementation challenge.

Producers of single-use plastic products must be registered on the German Environment Agency’s DIVID platform by 31 December 2024 – for the first reporting year of 2024. Find out what you need to do in this article.

From 1 January 2025, German businesses will have to be able to receive and process e-invoices. Which challenges does the retail sector have to be aware of at the end of the year, and how can it make use of the opportunities it brings?

In this post, we let you know the details and show you what to pay attention to with practical im-plementation.