The coalition's agreement of June 20, 2016 heralds
the provisional end of a reform process that has lasted more than
18 months. The reform, pronounced a minimally invasive
intervention, leaves many things unchanged related to the tax
privileges for business assets, however, some amendments exceed the
requirements of the German Federal Constitutional
Court.
Almost unchanged: Relief models
(Verschonungsmodelle)
There are two relief models for persons or companies subject to
taxation on the transfer of business assets. The first is the
standard exemption, according to which 85% of the value of the
business assets is excluded and, in order to avoid subsequent
taxation, the transferee must continue to operate the acquired
business for five years (retention period) and maintain at least
80% of the business' payroll (jobs) (wage regulation). The
second exemption option excludes 100% of the value of the business
assets, but in this case the requirements are a retention
