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Germany Proposes Corporate Tax Modernization for Partnerships

March 22, 2021, 4:39 PM

A new German draft law would allow commercial partnerships and partnership companies to be taxed like corporations.

Allowing businesses to choose the new option is intended to make family businesses that are partnerships more internationally competitive, the Finance Ministry said.

  • Changes to the Conversion Tax Act are intended to make it easier for companies to carry out mergers, demergers and other restructuring work in a tax-neutral manner.
  • Another change would allow companies to deduct as operating expenses losses from exchange rate fluctuations in connection with shareholder loans.
  • Germany is governed by a grand coalition formed of the ...