The Commission has requested that Germany amend its discriminatory inheritance tax legislation, with regard to legacies to charities in other Member States or EEA States because it is in breach of EU rules on free movement of capital.

The German legislation treats legacies to charities established in other EU/EEA States less favourably than legacies to certain charities established in Germany. Domestic charities are granted an exemption from inheritance tax. However, similar charities established in other EU/EEA States may only enjoy this tax exemption if their State of residence grants an equivalent or reciprocal exemption to comparable German charities. As a result, legacies to foreign charities are frequently more heavily taxed than legacies to German charities.

Press release


Informatiesoort: Nieuws

Rubriek: Europees belastingrecht

H&I: Previews


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