The Inheritance and Gift Tax Act (ErbStG) has its own tax exemption for business assets. However, it distinguishes between the standard exemption (exemption of 85 %) and the option exemption (exemption of 100 % of operating assets). If an acquirer wishes to use the option waiver, he or she must meet certain additional requirements. What these are, regulates § 13a paragraph 10 ErbStG!
Principle 1: The difference between rule and option protection
Anyone who inherits or receives beneficiary assets can, on request, use the exemptions applicable for this purpose (§§ 13a to 13c and § 28a ErbStG). Within the tax exemption, the purchaser has a further right to choose, because he freely chooses between rule protection and option protection. However, the fulfilment of certain conditions is necessary in each case. In the case of option protection, the requirements for the tax exemption are stricter than in general. Specifically, the following principles apply here:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.