German Inheritance and Gift Tax Reform 2016 for Businesses
On 14. October 2016 the Federal Parliament (Bundestag) and the Federal Assembly (Bundesrat) have reached a compromise on the inheritance and gift tax reform for the inheritance of business enterprises. All business assets, including interest in a commercial GmbH & Co KG as well as qualified shares in corporate enterprises shall continue to be eligible for preferential inheritance/gift tax treatment. The following article summarises the Basic Relief of 85 % and the Optional Relief of 100 %, as well as the treatment of administrative assets, the specific relief for family enterprises and the acquisitions of businesses over EUR 26 million under the new German inheritance tax rules.