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An analysis by Flick Gocke Schaumburg
Rebekka Rein and Christian Kahlenberg of our German firm, Flick Gocke Schaumburg, analyse a ruling by the German Federal Fiscal Court (BFH) that confirms taxpayers do not need to prove any subjective intention to return to Germany at the time of departure in order to use the return option under § 6 AStG. Under the return option, if a taxpayer returns to Germany within a certain period, any exit tax triggered will be rescinded retrospectively.
The BFH’s decision means that a taxpayer simply returning within the relevant period is sufficient for the exit tax to be lifted retrospectively. The decision is relevant for the old legal situation of Section 6 AStG, which was decisive for circumstances up to and including December 31, 2021, as well as for the new version of the exit taxation as per the ATAD Implementation Act.
Read more here.
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