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An analysis by Flick Gocke Schaumburg, Taxand Germany
The German government has recently issued a discussion draft to revise Section 15 AStG, aiming to improve legal certainty following a 2024 Federal Fiscal Court ruling. Key changes include limiting attribution to low-taxed income, broadening the definition of “family foundation,” replacing the “power of disposal” test with an EU-style “artificial arrangement” concept, dropping the business-foundation category, and extending the escape clause to third-country foundations.
Michal Fabian Kühn and Dr. Michael Tischendorf from our German member firm Flick Gocke Schaumburg have published an examination of the draft, arguing while the reforms are broadly welcome, important points – especially the undefined “artificial arrangement” – still require clarification.
You can read the full article here.
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