BDO Publishes German Tax and Legal Updates for March 2026
Germany plans a new legal entity, "Gesellschaft mit gebundenem Vermögen" (GmgV). A recent EU court ruling impacts VAT deduction timing. BDO's update also covers corporate tax and payroll matters.
BDO, a global professional services network, has released its tax and legal update for March 2026, highlighting key regulatory and legal developments in Germany. A significant announcement is the German government's plan to introduce a new, independent legal form called "Gesellschaft mit gebundenem Vermögen" (GmgV), which translates to a "company with tied assets." This initiative aims to provide a novel structure for businesses.
The update also addresses a ruling by the European Court of Justice (EuG) from February 2025 concerning the timing of value-added tax (VAT) deduction. The court's decision emphasizes the distinction between material and formal requirements for VAT deduction, sparking discussions within the German tax landscape.
Furthermore, BDO is hosting several seminars and events throughout March 2026. These include webinars focusing on payroll and social security reforms for small and medium-sized enterprises (SMEs), as well as seminars covering current topics in corporate taxation and VAT. Events addressing public sector administration in Southern Germany, the EU's pay transparency directive, and cybersecurity are also scheduled.
The publication also details several rulings from the German Federal Fiscal Court (BFH) pertaining to income tax and commercial operations. These decisions examine aspects such as the practical implementation of profit transfer agreements, the burden of proof for private use of company cars, and the recognition of taxable business operations.