What is special about the exit tax is that it is applied to profits that have not yet been realized. The tax office implements this in the form of a fictitious sale of the shares in the company at the normal market value and applies income tax on the basis of this fictitious profit. Even if an individual moves abroad - the hidden reserves on shares held as private assets will be taxed.
On 24.03.2021, the German government passed the draft law on the implementation of the Anti-Tax Avoidance Directive (ATAD-Umsetzungsgesetz - ATADUmsG). Taxpayers with exit plans for 2021 should seek advice!
The starting point for the emergence of the exit taxation was the emigration of Helmut Horten, a German wealthy owner of a department store chain, in 1968. He emigrated from Germany to Switzerland. By moving away, he was able to collect the profits from the sale of his company completely tax-free. Since the German treasury had already lost tax revenues in similar cases, this formed the basis of the exit taxation.
We will explain to you the tax aspects associated with a transfer of residence from Germany. In doing so, we focus especially on your individual problem areas and your personal tax situation in order to achieve the best possible tax structuring options for you. Our work focuses on the links between German and the respective foreign tax law (emigration country EU or third country) - taking into account all criteria from the relevant double taxation agreements. In addition, we clarify critical issues of your company valuation by the tax authorities.