Enacted Laws

• Review of legislation in 2025, with a particular focus on legislative changes that took effect in 2026.
• Second Act on the Strengthening of Occupational Pensionsof January 16, 2026
• Location Promotion Act – StoFöG dated February 4, 2026
  • Improving financing conditionsfor businesses.
  • Facilitating investments in venture capital.

• 
  Electric Vehicle Incentive Program ‍
• Pension Reform Act
  • Improving private retirement savings (“Riester” pensions).
  • Introduction of a retirement savings account for children (known asthe “Early Start Pension”).

• The Ninth Act Amending the Tax Consultancy Act and Other Tax Laws
  • Relief Bonus, Minimum Trade Tax Rate, and Real Estate Transfer Tax – Signing and Closing, Joint Ownership Presumption.

• Act on the implementation of the CSRD Directive
  • Omnibus Relief Package:Reduction of reporting requirements; postponement ofsustainability reporting.

• Act amending the Supply Chain Due Diligence Act.

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Implementation of any requirements set forth by the Federal Constitutional Court (BVerfG)

• The constitutionality of inheritance tax exemption provisions.
• Constitutionality of the rates of interest on suspended and deferred payments.
• Constitutionality of the loss carryforward rule in the event of a change in ownership exceeding 50%.
• The constitutionality of the restriction on offsetting losses from the sale of shares.

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Further reform projects

Tax law changes provided for in the coalition agreement

• For businesses: Corporate income tax liability for all newly established companies; self-assessment for corporations and partnerships; mandatory use of cash registers above a certain revenue threshold; addressing the issue of fictitious relocations 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 automatic child benefits, and providing tax relief for single parents (spousal/family tax splitting).‍
• In addition: tax deductions forenergy-efficient building renovations, reduction of red tape.

• Digitalization and automation of processes in the company.
• Statements from the Federal Chamber of Tax Consultants 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 Shareholders to File an E-Balance Sheet
• VAT in the Digital Age

Current case law and pronouncements

• Intangible (digital) assets on the commercial and tax balance sheets
  • Costs of customization 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 withrepairs and modernization.

• Economic ownershipin the case of a contribution in kind.
• The co-partner's shares in the GmbH as Special Business Assets II.
• Excessive acquisition costs as hidden contributions.
• Mixed donation
  • Transfer for partial consideration (strict or modified separation theory).

• Accrual Basis / Accrual Accounting
  • Maintenance reserve according to 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 shares: Hidden profit distributions and equity-based compensation.
• Non-deductible operating expenses
  • Early repayment penalty in connection with the sale of real estate
  • Voluntary payments to local residents as a gesture to increase acceptance of a wind turbine.
  • Interest on back payments and refunds of corporation tax and trade tax.

Current information on provisions and liabilities

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