Law On The Removal Of Obstacles To Investment In The German Democratic Republic Including Berlin (East)

Original Language Title: Gesetz zum Abbau von Hemmnissen bei Investitionen in der Deutschen Demokratischen Republik einschließlich Berlin (Ost)

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Act to remove barriers to investment in the German Democratic Republic including Berlin (East) (DDR Investment Act-GDR IG)

Non-official table of contents

DDR-IG

Date of expulsions: 26.06.1990

Full quote:

" DDR-Investment Act of 26. June 1990 (BGBl. 1143), by Annex I Cape Ider Regulation B II, point 22, EinigVtr of 31 December 2006, p. "

:As amended by Annex I Kap IV B II No. 22 EinigVtr v. 31.8.1990 iVm Art. 1 G v. 23.9.1990 II 885, 978

For details, see Notes

Footnote

(+ + + Text evidence: 29.6.1990 + + +)
(+ + + For application). cf. § 7 + + +) Non-official table of contents

Input formula

The Bundestag, with the consent of the Bundesrat, has approved the following law: Non-official Table of Contents

§ 1 Tax-free reserve on transfer of certain economic goods to a capital company or acquisition or purchase Economic cooperative in the German Democratic Republic including Berlin (East)

(1) taxable persons who determine the profit pursuant to § 4 (1) or § 5 of the Income Tax Act and to the assets of a domestic establishment -related abuseable assets to a capital company with head office and management in the German Democratic Republic, including Berlin (East), can be transferred to the company for the granting of new shares in the company, may be used in the marketing year the transfer up to the level of the profit resulting from the transfer form a reserve which reduces the tax profit. If there is already a holding in a capital company with its registered office and management in the German Democratic Republic, including Berlin (East), and in such a case, it will be part of the assets of a domestic holding company. economic goods which can be used in the company without the granting of new shares and without any other consideration corresponding to the value of the goods transferred shall be subject to the provisions of the first sentence, with the proviso that the marketing year shall be subject to the following conditions: Transfer up to the level of the profit made as a result of the free or partial unpaid transfer can be constituted by a reserve. The reserve shall be resolved annually at the latest by the tenth marketing year following its formation, with at least one tenth of a winner's increase.(2) The formation of the reserve requires that
1.
the capital company exclusively or almost exclusively the following activities in the German Democratic Republic including Berlin (East): the manufacture or supply, including exports of goods, other than weapons of any kind other than sports and hunting weapons, which are: Acquisition of natural resources or the effect of other industrial or agricultural or forestry activities or the holding of a holding of at least one quarter of the nominal capital of a capital company with headquarters and management in the German Democratic Republic including Berlin (East), which exclusively or almost exclusively has the aforementioned activities in the German Democratic Republic including Berlin (East) to the The subject matter, and
2.
the formation and dissolution of the reserve in the accounting of the taxable person can be pursued.
At the end of the marketing year, in where the conditions set out in paragraph 1 or 2 are no longer satisfied, the full amount of the reserve shall be disburdened in a manner which is increasing in a profit-making manner.(3) Where a participation referred to in the first or second sentences of paragraph 1 is wholly or partly sold or transferred to private property, the reserve thus formed shall be in the economic year of the sale or transfer to the private property as a whole or in the private capital. The ratio of the share of the share of the shareholding in the total contribution referred to in the first paragraph of paragraph 1 or transferred into the private assets to be resolved prematurely in a manner which is prematurely. The same applies in the cases referred to in the second sentence of paragraph 1, in so far as the transferred economic assets are eliminated from the assets of the capital company in the German Democratic Republic, including Berlin (East).(4) Paragraphs 1 to 3 are in the case of the transfer of usable economic goods belonging to the assets of a domestic establishment into an acquisition or economic cooperative with the head office and management in the German Democratic Republic Republic, including Berlin (East), to be applied mutatily. Non-official table of contents

§ 2 Tax-free reserve for losses of a subsidiary in the German Democratic Republic including Berlin (East)

(1) Unrestricted taxable persons who determine the profit pursuant to § 4 (1) or § 5 of the Income Tax Act may be liable for losses of a capital company with registered office and management in the German Democratic Republic including Berlin (East), in whose nominal capital the taxable person is directly involved in at least 10% of the hundred (subsidiary), constitute a reserve which reduces the tax profit. The formation of the reserve shall be for the marketing year in which the taxable person acquires shares in the subsidiary to an extent which, for the first time, leads to the taxpayer's participation in the volume referred to in the first sentence, or-if: the taxable person in the subsidiary has already been involved in the extent referred to in the first sentence, in which he acquires further shares in that company, and shall be allowed in the four following marketing years; the newly acquired shares must be shall be at least 5 per cent of the nominal capital of the subsidiary. The reserve may be constituted for the marketing year of the taxable person in which the loss of the subsidiary is incurred, up to the level of the part of the loss, which shall be the ratio of the newly acquired shares to the nominal capital of the company; it is to be reduced by the amount in which the taxable person carries out a partial depreciation in the marketing year of its formation on the newly acquired shares in the subsidiary. The reserve may not exceed the amount by which the newly acquired shares are placed in the tax balance.(2) The condition for the formation of the reserve is that
1.
the new share acquisition within the meaning of paragraph 1 Set 2 after the 31.
2.
2.
the subsidiary, or almost exclusively, the following activities in the German Democratic Republic including Berlin (East): the manufacture or supply, including export of goods, other than weapons of a different kind, as sports and hunting weapons, the extraction of mineral resources or the effect of other industrial services, or (i) agricultural and forestry or freelance activities, or holding at least one quarter of the nominal capital of a capital company with the head office and management in the German Democratic Republic, including: Berlin (East), which has exclusively or almost exclusively the aforementioned activities in the German Democratic Republic, including Berlin (East), and
3.
the requirements of point 2 by submitting relevant documents, in particular balance sheets and results invoices and any business reports of the subsidiary, proved , these documents must be submitted at the request of a certified public accounting body or equivalent body,
4.
The taxable person and the subsidiary undertake to submit documents of the type referred to in point 3 also for the marketing years following the loss year, as long as a reserve within the meaning of paragraph 1 shall be shown; the documents shall, without any doubt, result in the level of the operating results of the subsidiary obtained during those marketing years,
5.
the subsidiary declares that it is subject to the provision of information by the tax authorities of the German Democratic Republic, including Berlin (East), to the domestic Financial authorities agree, and
6.
The formation and dissolution of the reserve in the accountancy of the taxpayer can be pursued.
(3) The reserve is to be resolved in a profit-making manner,
1.
if the subsidiary is in a year following the loss year An economic year of profit,
in the amount of the share of the profit that is the ratio of the new the shares acquired within the meaning of the second sentence of paragraph 1 shall correspond to the nominal capital of the subsidiary, in so far as it does not take account of the losses which have been disregarded in the formation of the reserve referred to in the second sentence of paragraph 1 and the fourth sentence of paragraph 1, or the Amount of dissolution within the meaning of point 2 above
2.
if, in a marketing year following its formation, the newly acquired shares are in the sense of the In the second sentence of paragraph 1, a partial depreciation of the subsidiary is made,
at the level of the Amount of part-value depreciation
3.
if the taxable shares are sold to the subsidiary or transferred to the private property,
at the level of the part of the reserve that has transferred the share of or into the private assets Shares in the newly acquired shares within the meaning of the second sentence of paragraph 1
4.
if the verification obligations referred to in paragraph 2 (4) and (6) do not
at full height
the latest, however, at the end of the fifth Formation of the following economic year.(4) The provisions of paragraphs 1 to 3 shall apply mutaly to the losses of an acquisition or economic cooperative with its registered office and management in the German Democratic Republic, including Berlin (East). Non-official table of contents

§ 3 Intellectual Property Tax

The provisions of § § 1 and 2 shall also apply to the determination of the business income pursuant to § 7 of the Industrial tax law. unofficial table of contents

§ § 4 and 5 ----

unofficial Table of contents

§ 6 Berlin clause

This law applies in the Land of Berlin, in accordance with Section 12 (1) of the Third Code of Transfers Of Leftox. Non-official table of contents

§ 7 Entry into force, period of application

(1) This law will enter into force on the day after the announcement. It is to be applied for the first time for marketing years ending in the 1990 investment period.(2) A reserve in accordance with § 1 may only be formed if the economic goods are before the 1. It will be adopted in January 1992.(3) A reserve in accordance with § 2 may only be formed if the acquisition of new shares within the meaning of § 2 (1) sentence 2 before the 1. It took place in January 1992. The formation of the reserve is excluded, as far as the loss of the subsidiary
1.
according to § § 14 up to 17 of the corporation tax act to be attributed to an organ carrier or to
2.
in the income determination of the subsidiary pursuant to § 10d (1) of the Income Tax Act in conjunction with Section 8 (1) and (5) of the Corporate Tax Act has been deducted.