June 20 2016
The Federal Constitutional Court called for in a judgment in 2014 a reform of inheritance tax. The is now decided by the coalition. Photo: imago / Stockhoff
After a long dispute, the coalition agree on a reform of inheritance tax. The new regulation is intended to secure jobs in the SME sector.
Companies heirs must continue to prove the receipt of the operation and work better if they are to be exempt from inheritance tax. Shortly before the deadline by the Federal Constitutional Court CDU, CSU and SPD agreed on a new model for corporate inheritance. Now is the reform come very quickly. An Overview:
Last minute agreement on inheritance tax reform
what the coalition has agreed?
Long wrestled Finance Minister Wolfgang Schäuble (CDU), the CSU chairman Horst Seehofer and SPD leader Sigmar Gabriel to a way without too much change in the status quo of the specifications implement the Constitutional Court. This had prompted the policy to take the exemptions for operating heirs severe end of June 2016th
What will change now?
nothing for individuals. For corporate successor it is expensive to obtain an spared the Treasury. Some facilities put the CSU but through the renegotiations. An example: So far businesses with up to 20 employees are exempt without evidence of consideration (such as preservation of jobs). This was the Constitutional Court too far. CDU and SPD wanted it limited to companies with more than three employees. Now an agreement was on a threshold of five. On the other hand put the SPD tougher rules against tax planning through.
How much inheritance tax paying businesses?
In most cases, nothing. Who inherits a company, unlike the legacy of stock portfolios or houses even at very high sums avoid the tax. Therefore, the state requires consideration: the continuity of operations and major preservation of jobs. the successor must receive the operation for five years for a tax reduction of 85 percent and can reduce the total amount paid payroll only slightly. For a complete tax exemption would have to continue operating for seven years and shall not reduce the wage bill. With this principle, it remains. As called for by Karlsruhe the hurdles for the tax credit but to rise, especially in large enterprises.
What it must make large companies in the future?
The reform introduces a threshold of 26 million per heir or Beschenktem a new. From this scale the pure evidence of workplace preservation and continuation of operations is not enough. In addition, the beneficiary must in a needs test to disclose their personal assets. Only if that is too small to pay for Occupational inheritance from them, it is the full liberation. If the family entrepreneurs their personal assets do not wish to disclose, they can alternatively choose the billing model. They get a lower discount, which shrinks with increasing goodwill to zero. Erben very large companies must therefore continue to disclose their personal assets or pay the tax.
How to calculate the tax goodwill?
This is when family a big problem. The Treasury takes the income as a basis. Here comes against the policy of economy. In future, the recoverable corporate profit is multiplied only by a factor of ten to 12.5 percent. So far, the multiplier was 18. Due to the extremely low interest rates but surrendered so loud coalition unrealistically high values. Now the tax be based less goodwill. For real family company, a further discount of 30 percent is provided. Prerequisite: The individual kindreds can according shareholder agreement does not sell on the open market their shares.
Gabriel: reform of inheritance tax annually brings 235 million euros in addition
which assets draws the Treasury zoom?
that was a big topic of debate. is favored only the necessary to maintain the operation of assets, not the administrative assets as financial assets, minority interests in other companies. Because the distinction is difficult to ten percent of the administrative assets remain tax-free, significantly less than before. Those who invest within two years, but this can still correct.
How come the reactions to the agreement from?
Before dangerous burdens warns the industry association BDI. The Foundation for Family predicts that more companies will move abroad. From the perspective of the Left Party, the coalition of business lobby has yielded. The Green Party criticizes that very high asset would spared. As party to the provincial government, they must agree to the compromise in the Bundesrat. However, the countries have a strong interest in the financial statements, as they are entitled to the inheritance tax. Without law had for them the uncertainty größer.Nach the black-red plans to the Bundestag to agree in the first week of July, the Federal Council in the last session before the summer break on July 8. The law is retroactive from July 1 to come into force
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