Transfer of shares from business to private assets

Shares acquired as business assets prior to 2009 are not subject to taxation upon subsequent sale after transfer to private assets.

Since the introduction of the final withholding tax on January 1, 2009, the sale of shares has been included in income from capital assets, irrespective of their holding period. However, the decisive factor for tax liability is that the shares were acquired after the introduction of the flat rate withholding tax - the sale of shares acquired before 2009 continues to be tax-free. In this regard, the Münster Fiscal Court has now ruled that the transfer of shares acquired before 2009 from business assets to private assets is not equivalent to an acquisition. A subsequent capital gain from the sale of these shares therefore does not lead to income from capital assets.