German inheritance tax - determination of the tax due

The following shedule shows how German inheritance tax due is determined (law applicable for all acquisitions since January 1st 2007 (optional for acquisitions until January 1st 2009).

 

 

Limited or unlimited (situs) tax liability

 

Opens internal link in current windowCheck if limited or unlimited tax liability occurs.

 

According to § 10 of the German inheritance Tax Act the tax due is determined as follows:

 

 

All acquired estate assets (§ 3 German inheritance Tax Act) assessed according to § 12 German inheritance Tax Act

 

deduct tax free assets under § 13 ErbStG and § 13 a German Inheritance Tax Act

 

deduct estate debts and deductable costs of administration according to § 10 (5) German inheritance Tax Acts

 

= acquisition

deduct General tax free allowances (§ 16 German Inheritance Tax Act)

 

deduct special tax free allowances with respect to maintenance of the spouse and children (§ 17 German Inheritance Tax Act)

 

dedcut claims of the spouse with respect to equalization of the community surplus statutory matrimonial property regime (§ 5 German Inheritance Tax Act)

 

= Taxable acquisition (§ 10 German Inheritance Tax Act)

Add lifetime Gifts made by the decedent to the beneficiary (§ 14 German Inheritance Tax Act)

 

Determine tax class (§ 15 German Inheritance Tax Act)

Apply tax rates (§ 19 German Inheritance Tax Act)

 

Deduct foreign estate and inheritance taxes (§ 21 German Inheritance Tax Act or Treaty)

 

Cap under § 14 (2) ErbStG

 

 

 

 

Wichtiger Hinweis: Dieser Artikel dient nur der ersten Information und stellt keine Rechtsberatung dar, da diese nur unter Berücksichtigung aller Umstände des konkreten Einzelfalls möglich ist. Für Aktualität und Richtigkeit übernehmen wir keine Gewähr.

  

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2009 © Jan-Hendrik Frank (Rechtsanwalt und Fachanwalt für Erbrecht)