The Federal Council has approved the „Ninth Act Amending Provisions of Tax Advisory Law,“ meaning that the following changes, among others, can now take effect.
Minimum Trade Tax Rate
Starting with the 2027 assessment period, the minimum trade tax rate specified in § 16(4), sentence 2, of the Trade Tax Act (GewStG) will be raised from 200% to 280%. This measure is intended to prevent business relocations motivated purely by tax considerations and the associated detrimental effects on the budgets of the affected municipalities.
Real estate transfer tax
The rules governing the signing and closing of real estate transactions for real estate transfer tax purposes are being revised to prevent the possibility of double taxation of the same set of facts in cases where the binding transaction (= signing) and the dispositive transaction (= closing) occur at different times. In addition, the reporting deadlines for parties involved under Section 19 of the Real Estate Transfer Tax Act (GrEStG) will be extended to one month.
The priority of taxation at the time of signing is governed by a new paragraph 3b of § 1 of the Real Estate Transfer Tax Act (GrEStG). As a result, further consequential amendments to the tax base, the persons liable for tax, and the procedural provisions are required. In Section 19(3) of the GrEStG, the deadlines for the parties involved are uniformly set at one month. This applies for the first time to acquisitions that take place after the date of promulgation.
Fictitious Joint Ownership for Real Estate Transfer Tax Purposes
The presumption of joint ownership for real estate transfer tax purposes applicable to partnerships (Section 24 of the Real Estate Transfer Tax Act (GrEStG)) will no longer be subject to a time limit. This provision would otherwise have expired on December 31, 2026. As a result, particularly in the case of the transfer of real property from or to a joint tenancy (§§ 5, 6 GrEStG), the existing legal situation—which has been largely established by decades of case law—will be maintained until further notice.
Bonus payments for placing at the Olympic or Paralympic Games
The Tax Amendment Act of 2025 added Section 3, No. 73 of the Income Tax Act (EStG), which exempts from tax bonus payments made by the German Sports Aid Foundation (Stiftung Deutsche Sporthilfe) for placements at the Olympic or Paralympic Games. This latest amendment is intended to also exempt from taxation bonus payments made by comparable charitable organizations of the federal states or benefits paid directly from the federal states’ budgets that are granted for placements at the Olympic or Paralympic Games. The comparability of the non-profit organizations must be evident in terms of their funding purpose and organizational structure. The primary purpose is to support athletes in their preparation for and achievement of top athletic performances and in representing their country. In addition, the Finance Committee made a further amendment during the legislative process, according to which Premium Payments the German Sports Aid Foundation and similar nonprofit organizations in the federal states, or funds provided directly from the federal states’ budgets for placements in Olympic or Paralympic Games are granted, they are exempt from tax (Section 3, No. 73 of the Income Tax Act).