The BFH: On the gift tax liability of personal contributions to the capital reserve of a German limited liability company (GmbH)

In its decision dated July 6, 2025, the Federal Fiscal Court provisionally clarified, at least in the AdV proceedings: If disproportionate contributions to the capital reserve of a GmbH are clearly allocated to a shareholder, no gift tax is due pursuant to Section 7 para. 8 ErbStG - regardless of whether the allocation is agreed in the articles of association or in a subsidiary agreement under the law of obligations.

Our professionals Dr. Sebastian Löcherbach and Dr. Marcel Duplois shed light on the decision in the tax board DER BETRIEB, which provides further clarity for disproportional capital measures, which are regularly required, especially in financing rounds and/or family businesses.