Value of the taxable person
Acquisition (§ 10)
up to and including
... Euro | Percentage in tax bracket
I | II | III
75 000 | 7 | 15 | 30
300 000 | 11 | 20 | 30
600 000 | 15 | 25 | 30
6 000 000 | 19 | 30 | 30
13 000 000 | 23 | 35 | 50
26,000,000 | 27 | 40 | 50
over 26,000,000 | 30 | 43 | 50
Value of the entire acquisition | EUR 2.400.000
Less allowance according to § 16 ErbStG | EUR 400.000
Remaining enrichment within the 10-year period according to § 10 ErbStG | EUR 2.000.000
Tax applicable according to § 19 (1) ErbStG (acquisition up to EUR 6,000,000, tax class I) in percent | 19%
Tax amount absolute | EUR 380.000
Tax already paid | EUR 22,000
Remaining tax amount | EUR 358.000
Hardship compensation according to § 19 paragraph 3 ErbStG | EUR 0,00
Value of the total acquisition | EUR 6,500,000
Already deducted allowance | EUR 400,000
Taxable acquisition according to § 10 ErbStG | EUR 6,100,000
Tax applicable thereto (§ 19 ErbStG, 23 %) | EUR 1.403.000
Tax on EUR 5,600,000 (acquisition of EUR 6,000,000 net of taxes). Exemption EUR 400,000, tax rate 19% | EUR 1.064,000
Difference in tax amounts | EUR 339,000
Cap according to § 14 paragraph 3 ErbStG (50 % of the value of the subsequent acquisition) | EUR 250.000
Inheritance and gift tax to be fixed (EUR 1.064,000 plus EUR 250,000) | EUR 1.314,000
The Inheritance and Gift Tax Act (ErbStG) knows various exemptions for inheritances and gifts. It is generally known that there is a 10-year period for the use of these benefits. The background is obvious, because the legislator wants to avoid that uniform capital transfers are divided into several branches, which could lead to a circumvention of the inheritance and gift tax. But what exactly is behind the 10-year period of § 14 ErbStG, for which cases does the provision apply and where are there exceptions?
1st principle: 10-year period for inheritances and gifts
The pivotal point of the 10-year period is § 14 ErbStG. It stipulates that several acquisitions that take place within 10 years are to be aggregated. Allowances and other perks can only be claimed once per person within this 10-year period. The provision is therefore personal, because every acquirer is always considered in isolation.
The 10-year period thus applies only to acquisitions that are incurred by the same person and benefit the same acquirer within this period.
In order to clarify the purpose of the standard, we take a look at the taxation principles of the ErbStG in the first step. Because every taxation process takes place in several, always identical steps:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.