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Germany: Tax rules during Brexit transition period; group exemption from real estate transfer tax

Germany: Tax rules during Brexit transition period

Tax legislation in Germany is intended to respond to the need for rules in various areas of German tax and financial market laws with regard to “Brexit” and during the transition period that ends 31 December 2020 (unless the transition period is extended until 31 December 2022).

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During the transition period, references under German law to EU membership will be understood to include Great Britain and Northern Ireland. This will apply, for example, for income tax, value added tax (VAT), and corporate tax purposes.


Read a March 2020 report [PDF 321 KB] prepared by the KPMG member firm in Germany


The KPMG report also includes brief discussions of the following developments:

  • Federal Tax Court (BHF) decisions on the “group exemption” provision for real estate transfer tax purposes (in general, the exemption from real estate transfer tax for certain acquisitions due to restructuring within a group provided that ownership criteria are satisfied after the restructuring)
  • Guidance from the Ministry of Finance (BMF) on the treatment of German limited partnerships under provisions of the Germany-Netherlands income tax treaty, when the partnerships are classified differently by the two countries (in particular, through tax credits in the Netherlands)

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

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