News on trade tax on capital gains

In its ruling of May 8, 2025 (IV R 40/22), the Federal Fiscal Court (BFH) decided on the question, which had not yet been clarified by the highest court, of who is liable for trade tax on the capital gains from the sale of the upper partnership in a two-tier partnership. This confirmed the tax authorities' view that this is a uniform sale transaction at the level of the upper partnership. This article outlines the principles governing the trade tax treatment of capital gains and highlights the main arguments put forward by the Federal Fiscal Court.