ARTICLE · 14 MAY 2001

215. Last Minute German Tax Reform Changes

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Dr. Jürgen Hartmann

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The following article was first published in the February 2001 edition of International Tax Review.

Last minute changes affecting businesses in general and banks in particular were made in the landmark German tax reform package reported on in article no. 209.

Repeal Of Holding Period For Capital Gains Exemption

The tax legislation adopted in July 2000, and formally enacted in October 2000, creates an exemption for corporate dividends received and for capital gains realised by businesses on the sale of corporate stock. The exemption is partial (50 %) for individuals and total (100 %) for corporations. Generally speaking, the capital gains exemption applies to sales of stock in calendar-year corporations from 1 January 2002 onwards and to sales of stock in non-calendar year corporations

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