German Tax News

    View Authors May 2014

    German Loss Forfeiture Rules (Verlustuntergang): News Regarding the Transfer of Shares During a Financial Year

    Under the loss forfeiture rules, a corporation’s current losses and loss carried forwards are subject to a change in ownership of the shares. According to these rules, losses and loss carried forwards will forfeit partially if more than 25% but less than 50% of the nominal capital, membership rights or voting rights in a corporation are directly or indirectly transferred to an acquirer or to its related parties within five years. Unused losses and loss carried forwards will forfeit in full where more than 50% of the shares or voting rights are transferred within five years.