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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.

After resolution in the Bundestag on 18 October 2024, the Bundesrat, the upper house, approved the Annual Tax Act 2024 (JStG 2024) on 22 November 2024. The Act should now be promulgated shortly. Below, we let you know about selected changes to business taxes.