New circular letter on transfer of assets and partnership interests


Federal Ministry of Finance directs non-application of recent rulings by the Federal Fiscal Court.

With its circular letter dated 12 September 2013, the Federal Ministry of Finance comments on three rulings by the Federal Fiscal Court dealing with the transfer of assets and partnership interests. According to the circular letter, the Federal Fiscal Court’s rulings shall not be generally applied by the tax administration. Rather, the Federal Ministry of Finance will await the rulings of the Federal Fiscal Court in further pending cases.

The circular letter addresses the following issues:

• The Federal Fiscal Court had ruled that the transfer of an asset belonging to the so-called special business assets (Sonderbetriebsvermögen) of a partner to the assets of the partnership (Gesamthandsvermögen) against partial consideration (Teilentgelt) does not lead to a taxable realization of profits if such consideration does not exceed the book value of the asset (File No. IV R 11/12). If the partial consideration does not exceed the book value, the transfer is deemed to have been carried out without consideration.

Please see full report below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Latham & Watkins LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.