Changes to business taxation

Changes to business taxation from 2019

In the course of the legislative procedure, the 2018 Annual Tax Act was renamed the “Tax Act for the Prevention of VAT Revenue Losses from Trading in Goods over the Internet and Amendment of Further Tax Provisions”. The particular aims of this legislative package, which was passed by the Bundesrat (upper house of German parliament) on 23.11.2018, include:

  • preventing VAT revenue losses of the type mentioned above,
  • enshrining in law the taxation of restructuring profits as well as
  • making other necessary adjustments to align with the latest tax case law and practices of the tax authorities.

Overall, businesses can expect a series of improvements to ensue. Read more about the details of the key new legal provisions in PKF newsletter 12/2018.

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