Update: Extension of the Period of the Retrospective period for Restructuring Measures in the German Reorganization Tax Act (UmwStG)

We have reported that the law for the Mitigation of the consequences of the COVID-19 pandemic in Civil, Insolvency and Criminal Proceedings Law of 27 March 2020 ("COVID-19 Law") extended the commercial law retroactive effect of restructuring (Link).

Filed under:
Germany, Insolvency & Restructuring, Tax, Advant Beiten, Coronavirus
Authors:
Dr. Karl-Dieter Müller , Benjamin Knorr , Dragan Skrebic
Location:
Germany
Firm:
Advant Beiten
Period of the Retroactive Effect for Restructuring Measures extended - Does this also apply for tax purposes as part of the German Reorganisation Tax Act?

On 27 March 2020, the law for the Mitigation of the Consequences of the COVID-19 Pandemic in Civil, Insolvency and Criminal Proceedings Law was announced in the Federal Law Gazette (BGBl. I 2020, page 569). Among other things, the retroaction under commercial law in case of restructuring measures for the year 2020 was extended from eight to twelve months, although adaptations in the Reorganisation Tax Act (UmwStG) were not made in this context. This may result in complications.

Filed under:
Germany, Insolvency & Restructuring, Tax, Advant Beiten, Coronavirus
Authors:
Dr. Karl-Dieter Müller , Benjamin Knorr , Dragan Skrebic
Location:
Germany
Firm:
Advant Beiten