BDO AG Releases Tax and Legal Update: High Court Rulings and Tax Changes

Tax advisory firm BDO AG has released an updated briefing on tax and legal developments. The update covers several key areas, including international tax trends, tax implications of corporate restructurings, and effects on both individuals and businesses.

The briefing addresses topics such as the global minimum tax, commonly known as Pillar 2, which targets multinational enterprises with revenues exceeding €750 million. Germany's Minimum Tax Law became effective on January 1, 2024, requiring companies to take action to comply with new regulations. Additionally, it highlights changes related to single-use plastic products and their impact on businesses.

A significant component of the update features recent rulings from the German Federal Fiscal Court (BFH). One notable decision pertains to the deductibility of donations made to a Swiss foundation, clarifying national requirements and the burden of proof. Another set of BFH decisions addresses the limited application of partial tax exemption for investment funds concerning capital gains and losses.

Furthermore, BDO reports on legislative changes, including a draft law aimed at digitalizing the execution of real estate transactions, intending to reduce paper-based processes and enhance data exchange. The firm also announced a web seminar on current industrial electricity tax issues scheduled for February 2026.

BDO AG, a global provider of assurance, tax, and advisory services, aims to assist its clients in navigating the complex tax and legal landscape through these timely updates. The reports offer expert analysis and practical guidance on current tax and legal matters.