Germany MOF Clarifies Loss Carryforwards in Harmful Share Acquisitions for Corporate Restructuring Purposes

The German Ministry of Finance April 29 posted BMF Letter No. COO.7005.100.3.14741105, clarifying loss carryforwards in harmful share acquisitions for corporate restructuring purposes. The letter includes: 1) requirements under which a share acquisition qualifies as a restructuring acquisition, including the condition that insolvency or over-indebtedness occurred or was threatened at the time of the acquisition; 2) the application of the restructuring clause in group or multi-tier shareholding structures; 3) conditions for the preservation of essential operating structures, which includes a company’s agreement with workplace regulations, compliance with payroll regulations, and the provision of significant company assets through contributions; 4) the ...