Enacted Laws

• A review of the legislation of 2025, with a particular focus on legislative changes that took effect in 2026.
• Second Act to Strengthen Occupational Pensions of January 16, 2026
• Regional Development Act – StoFöG dated February 4, 2026
  • Improving financing conditions for businesses.
  • Facilitating venture capital investments.
• Electric Car Incentive Program‍
• Pension Reform Act
  • Improving private retirement savings (“Riester” pensions).
  • Introduction of a retirement savings account for children (known as the “Early Start Pension”).
• Ninth Act Amending the Tax Consultation Act and Other Tax Provisions
  • Relief Bonus, Minimum Trade Tax Rate, and Real Estate Transfer Tax – Signing and Closing, Joint Ownership Presumption.
• Act Implementing the CSRD Directive
  • Omnibus Relief Package: Reduction of reporting requirements; postponement of sustainability reporting.
• Act Amending the Supply Chain Due Diligence Act.

‍

Implementation of any guidelines issued by the Federal Constitutional Court (BVerfG)

• Constitutionality of the inheritance tax exemption provisions.
• Constitutionality of the Amount of Interest on Suspended and Deferred Payments.
• Constitutionality of the loss carryforward rule in the event of a change in ownership exceeding 50%.
• Constitutionality of the restriction on offsetting losses from the sale of shares.

‍

Other Reform Initiatives

Tax Law Changes Envisaged in the Coalition Agreement

• For businesses: Corporate income tax liability for all newly established companies; self-assessment of taxes for corporations and partnerships; mandatory use of cash registers above a certain revenue threshold; and combating sham transfers of registered offices to so-called trade tax havens.
• For employees: Combining the commuting allowance and the work-from-home allowance into a single workday allowance.‍
• For families: Aligning the tax relief provided by child benefits and child tax credits, introducing a child benefit that does not require an application, and providing tax relief for single parents (spousal/family tax splitting).‍
• In addition: tax deductions for energy-efficient building renovations, reduction of red tape.

‍

• Digitization and automation of business processes.
• Statements from the Federal Chamber of Tax Advisors on GoBD and e-invoicing
• E-Invoicing and Reporting Requirements in Accounting
• E-Balance Sheet – Current Developments, Practical Implementation, Taxonomies 6.9 and 6.10, FAQs, Requirement for Atypical Still to File an E-Balance Sheet
• VAT in the Digital Age

‍Current Case Law and Statements

• Intangible (Digital) Assets on the commercial and tax balance sheets
  • Costs of Customizing in Light of the EU Data Act.
• Properties
  • including, among other things, subsequent construction costs resulting from expansion and substantial improvements (IDW vs. BMF).
  • Maintenance costs associated with repairs and modernization.
• Economic ownership in the case of a contribution "quoad sortem."
• The co-owner’s shares in the GmbH as Special Business Assets II.
• Excessive acquisition costs as a hidden dividend.
• Mixed Donation
  • Transfer for partial consideration (strict or modified separation theory).
• Accrual Principle / Accrual Accounting
  • Maintenance Reserve under the WEG.
  • Recognition of claims arising from a decommissioning obligation.
  • Signing fees and the provision of a sales guarantee.
• Company Car Taxation: Commuting Between Home and the Workplace.
• Accounting for Treasury Stock: Hidden Profit Distributions and Equity-Based Compensation.
• Non-deductible business expenses
  • Early repayment penalty in connection with the sale of real estate
  • Voluntary payments to local residents, given as gifts to increase acceptance of a wind turbine.
  • Interest on Back Payments and Refunds for Corporate Income Tax and Trade Tax

Latest News on Provisions and Liabilities

• Provisions for contractual and public-law obligations.
• Early retirement plan, pension provisions, discounting in the financial and tax balance sheets.