Germany MOF Releases Court Decision Explaining Consideration of Maintenance Provision for Real Estate Transfer Tax

April 6, 2021, 5:00 AM

The German Ministry of Finance April 1 released Tax Court Decision No. II R 49/17, explaining the consideration of maintenance provisions in calculating real estate transfer taxes (RETT). A taxpayer acquired various partial ownership rights as a result of purchasing several commercial property units and parking spaces. The partial ownership share included a maintenance reserve. The tax office calculated the RETT based on the purchase price, which the taxpayer objected to and argued that the tax assessment basis should be reduced by the maintenance reserve. The court dismissed the appeal, explaining that: 1) the assessment basis for the RETT is ...

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