News on German exit taxation pursuant to Section 6 of the German Foreign Tax Act (AStG)

The legislator has made the exit tax in accordance with Section 6 of the German Foreign Tax Act (AStG) an everyday phenomenon in tax consultancy practice through a series of tightened laws. Shortly before the start of 2024, the legislator even retroactively created an additional hardship for old cases - relocations up to December 31, 2021: The tax authorities’ options for revoking the EU/EEA deferral were retroactively extended. However, the situation is not completely hopeless for the taxpayers affected by this: In January 2024, the long-awaited ruling of the BFH of 6 September 2023 (case no. I R 35/20) was published in the “Wächtler” case. Some of the tightening measures of recent years are therefore no longer likely to be upheld under European law.