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Germany plans to soften business restructuring rules

February 26, 2010

Germany has produced draft legislation that seeks to soften the transfer of function rules. The draft legislation would reform the exit charge that a company pays when it transfers its assets.

Now the exit charge when transferring functions is based on a ‘transfer package’, the valuation of which includes any assets and other advantages associated with the function and its profit potential. This controversially included goodwill which was widely criticised as it was expected to give rise to double taxation.

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