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Business split-up (“Betriebsaufspaltung”) and trade tax

Business split-up | Trade tax

The business split-up (“Betriebsaufspaltung”) is not regulated by German tax law, but is based on case law. It originally arose with a view to trade tax and its possible erosion when a domi-nant shareholder leases assets to a corporation. In the meantime, it has detached itself from this "context" according to the case law of the Federal Tax Court (“Bundesfinanzhof”) and now has a life of its own that is not enshrined in law. Nevertheless, it continues to have a noticeable impact on trade tax, as a new ruling by the Federal Tax Court (file number IV B 31/25) shows.

Dr Martin Weiss
| 6 min read | 13 Mar 2026

Actual implementation of the profit and loss transfer agreement in the German fiscal unity

Profit and loss transfer agreement

The profit and loss transfer agreement is a "German peculiarity" for establishing a fiscal unity (“Organschaft”) for income tax purposes. It must be concluded for at least five years and implemented throughout its entire term. Unlike other criteria, such as financial integration, there can be no "interruption" in its implementation. If it is not actually implemented, the fiscal unity cannot be established and must be treated as a "failed fiscal unity." The Federal Tax Court has now specified the details of the actual implementation in a new ruling with great practical relevance.

Dr Martin Weiss
| 7 min read | 12 Mar 2026

Phase-aligned recognition of a minority shareholder’s compensation claim from a tax group

Tax accounts law

Phase-aligned recognition of a minority shareholder’s compensation claim from a tax group

Torben Schlitt
| 7 min read | 12 Mar 2026

Revised Legal Interpretation by Germany’s Federal Labour Court – Rethinking virtual participation programs

Employee shareholdings

Virtual participation programs have long been highly popular, particularly in the venture capital and technology sectors, where limited financial resources meet strong competition for highly skilled talent. Against this background, companies frequently implement comprehensive employee participation programs to retain key personnel or to attract them in the first place. The Federal Labour Court’s (Bundesarbeitsgericht – BAG) revised legal interpretation, reflected in its decision of 19 March 2025, makes it necessary to fundamentally rethink the set-up of virtual participation programs. This article outlines the implications of the decision and highlights practical consequences for employers.

Dr Mathias Reif
Boris Kröpsky
Verena Weber
Valentin Ganzer
| 9 min read | 05 Mar 2026

New codes in tax return forms

A tension between transparency and criminal tax law

In a circular dated December 29, 2025, the Federal Ministry of Finance announced changes to fields in, among other things, the • 2026 advance VAT return • 2026 yearly VAT return • special advance payment of VAT for 2026 • income tax return 2025.

Katharina Lehner
Dr Martin Weiss
Wiebke Werner
| 11 min read | 04 Mar 2026
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Press releases

Grant Thornton increases annual revenue to EUR 264 million in financial year 2024/25

11 Mar 2026

The audit and advisory firm Grant Thornton in Germany ended the 2024/25 financial year on September 30, 2025, with consolidated revenue of EUR 264 million (up 6 percent on the previous year). The Audit & Assurance division recorded particularly strong growth with an increase of 14 per cent compared to the previous year.

Grant Thornton Germany wins Martin Biegel for the new position of CFO/COO

09 Feb 2026

Martin Biegel joined the Senior Leadership Team of the audit and advisory firm Grant Thornton Germany in February as the new Chief Financial Officer/Chief Operating Officer (CFO/COO) and in this role will actively help drive the firm’s strategic development.

Grant Thornton Germany and Cinven enter into strategic partnership

13 Oct 2025

The Equity Partners of Grant Thornton AG Wirtschaftsprüfungsgesellschaft (“Grant Thornton Germany”) have approved the strategic partnership with international private equity firm Cinven. This marks a key milestone for the transaction initially announced on 10 September 2025, which is expected to close in the first quarter of 2026. The partnership further strengthens Grant Thornton Germany’s position as a leading, trusted service provider in the German audit and advisory market, ushering in its next phase of growth.

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