Disposal of shares in corporations pursuant to Article 17 of the German Income Tax Act (EStG) - Prerequisites for tax “step-up” in the case of relocation

For the first time, the Federal Fiscal Court (BFH) has ruled on a case concerning the increase in acquisition costs pursuant to Article 17 (2) sentence 3 of the German Income Tax Act (EStG) in the event of a sale of shares in a corporation following an influx (ruling dated October 26, 2021 - IX R 13/20). This ruling is intended to avoid double taxation of the increase in assets that has already arisen abroad.