Tax - the one pager: Real estate transfer tax
New local responsibilities for share deals through the identical decrees of 16 October 2023
June 10, 2024
Tax - the one pager: Real estate transfer taxNew local responsibilities for share deals through the identical decrees of 16 October 2023June 10, 2024 The identical federal state decrees (GLE of 16 October 2023 - S 4501, BStBl 2023 I p. 1872 (‘GLE’)) not only lead to changes in substantive law, but are also important in the context of local jurisdiction for transactions (sections 1 (2a), 2b, 3 and 3a GrEStG). The notification obligations under Section 19 GrEStG depend on the companies involved. Notifications must be sent to the relevant tax office. Due to tight deadlines (2 weeks for residents, 4 weeks for non-residents), errors can usually no longer be rectified. Legal situation before 16 October 2023Previously, the jurisdiction regulations of the identical federal state decrees of 1 March 2016, p. 4541, BStBl. 2016 I p. 282 applied. Legal situation after 16 October 2023The effects of the new view of the tax authorities on the responsibilities pursuant to Section 17 (3) no. 2 GrEStG and the interaction of the new attribution system with the previous state decrees have not yet been clarified. Two points should be noted:
According to reports, the tax office in whose district the property is located will continue to be responsible for determining the real estate transfer tax. Inconsistent application of the GLEIn view of the consequences of incorrect notifications, the examination of responsibility is an important point. Clarification would be welcome. At least in NRW, clarification seems to be underway. A standardised nationwide approach would be desirable. Key takeaways:Without notification pursuant to Section 19 GrEStG to the correct tax office, there is a risk of losing the benefit of Section 16 (4a) GrEStG. Failure to notify can also have further consequences. Key contacts
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