Insight
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Insight
Proposed German Exit Tax Revisions Are Subject of Controversy
The German exit tax is about to undergo a far-reaching reform. Expected to take effect on January 1, 2022, EU citizens who move from Germany to another EU country will be in a significantly worse tax position than under the rules currently in force. If the country of relocation does not take the German exit tax into account in its own income tax, there may be double taxation of company holdings - despite double taxation agreements between Germany and the country of relocation. Even then, Germany would not refund its exit tax. It is doubtful whether such a de facto “relocation block” is compatible with the fundamental freedoms of EU law.
in: Tax Notes Federal, May 3, 2021, 657-658
Publisher: Tax Analysts
