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).
I. Limited or unlimited (situs) tax liability
Check if limited or unlimited tax liability occurs.
II. Determination of the taxable acquisition (§ 10 ErbStG)
All acquired estate assets (§ 3 ErbStG) assessed according to § 12 ErbStG |
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- Tax exclusions under § 13 ErbStG |
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- Debts and liabilities according to § 10 (5) ErbStG |
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= acquisition | |
General tax free allowances (§ 16 ErbStG) |
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- Special tax free allowances with respect to maintenance of the spouse and children (§ 17 ErbStG) |
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- Claims of the spouse with respect to equalization of the community surplus statutory matrimonial property regime (§ 5 ErbStG) |
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Taxable acquisition |
III. Determination of tax due
+ Prior acquisitions (§ 14 ErbStG) |
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Determine tax class (§ 15 ErbStG) | |
Apply tax rates (§ 19 ErbStG) |
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Deduct foreign estate and inheritance taxes (§ 21 ErbStG) |
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Cap under § 14 (2) ErbStG |
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