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)

Read the untranslated law here: http://www.gesetze-im-internet.de/ddrig/BJNR011430990.html

Law on the removal of obstacles to investment in the German Democratic Republic including Berlin (ost) (East German investment law GDR IG) GDR IG preparation date: 26.06.1990 full quotation: "East German investment law of 26 June 1990 (BGBl. I p. 1143), the conditioning I Cape of Ito Regulation B II number 22 EinigVtr has been changed from August 31, 1990" stand: changed by conditioning I Cape IV B II No. 22 EinigVtr v. 31.8.1990 in conjunction with art. 1 G v. 23.9.1990 II 885 , Learn 978 to the stand number in the menu see remarks footnote (+++ text detection from: 29.6.1990 +++) (+++ to the application see § 7 +++) input formula the Bundestag has decided with the consent of the Federal Council the following law: § 1 tax-free reserve for transfer of certain assets in a corporation or acquisition or business cooperative in the German Democratic Republic including Berlin (East) (1) taxable persons, which according to article 4, paragraph 1, or article 5 of the income tax act to determine the profit and belonging to the assets of a domestic operation depreciable assets to a capital company with seat and convict management in the German Democratic Republic including Berlin (ost) by granting the new shares in the company, can make up to the amount of the profit resulting from the transfer of a reserve reducing the tax profit in the year of the transfer. Is already a stake in a corporation with headquarters and management in the German Democratic Republic including Berlin (East) and a domestic operation, depreciable assets in the company without granting new shares and any other consideration, which corresponds to the value of the assets of convicted, transferred in such a case to the fixed assets, is set 1 with the proviso, that in the year of the transfer up to the amount of profit incurred as a result of the unpaid or part-free transfer a reserve formed can be. The reserve is to terminate at the latest by the tenth on their education following marketing year on year with at least one-tenth profit increasing.
(2) the formation of the reserve implies that 1 exclusively or almost exclusively the following activities in the German Democratic Republic including Berlin (East) to the subject has the Corporation: the manufacture or delivery including export of goods except weapons of other types as sports and hunting weapons, the extraction of minerals or the fulfilment of other commercial services or agricultural and forestry or freelance activities or hold a participation of at least one quarter of the nominal capital of a capital company with headquarters and management in the German Democratic Republic including Berlin (ost), which exclusively or almost exclusively has the above-mentioned activities in the German Democratic Republic including Berlin (East) to the subject, and the formation and dissolution of the reserve in the accounts of the taxpayer pursues 2 can be.
At the end of the marketing year in which the conditions of the number 1 or 2 are no longer fulfilled, is the reserve in full profit increasing to resolve.
(3) If a participation within the meaning of paragraph 1 sentences 1 or 2 whole or partially sold or transferred into the private assets, the qualified reserve in the year of the sale or transfer to the private assets is to resolve as a whole or in relation of the divested or convicted in the private share of the participation total participation in the sense of paragraph 1 sentences 1 or 2 in advance while increasing profit. The same applies in the cases of paragraph 1 sentence 2 as far as the convicted assets drop out of the assets of the Corporation in the German Democratic Republic including Berlin (East).
(4) paragraphs 1 to 3 shall mutatis mutandis apply related depreciable assets in a purchase or business cooperative with headquarters and management in the German Democratic Republic including Berlin (East) during the transfer of the assets of a domestic operation.

§ 2 tax-free reserve for losses of a subsidiary in the German Democratic Republic including Berlin (East) (1) unlimited can taxpayers who determine the profit according to article 4, paragraph 1, or article 5 of the income tax act for losses of a corporation with headquarters and management in the German Democratic Republic including Berlin (East), the nominal share capital the taxpayer at least to 10 per cent (subsidiary) is directly involved in , a reserve that reducing the income tax form. The formation of the reserve is for the marketing year in which the taxable person acquires shares in the subsidiary to such an extent that for the first time leads to a participation of the taxpayer to the extent referred to in sentence 1, or - if the taxable subsidiary was involved to the extent referred to in sentence 1 - in which he acquires more shares in this company , and is allowed in the four following years. the newly purchased shares must be at least 5 per cent of the nominal capital of the subsidiary. The reserve may be made for the fiscal year of the taxpayer in which the loss of the subsidiary was created, up to the amount of the part of the loss corresponding to the ratio of the newly acquired shares to the nominal capital of the company; It is to reduce the amount in the amount of the taxpayer in the year of their education on the newly acquired shares in the subsidiary makes a part of goodwill. The reserve may not exceed the amount, with the newly acquired shares in the tax balance sheet are.
(2) requirement for the formation of the reserve is that 1 the new acquisition within the meaning of paragraph 1 sentence 2 after December 31, 1989 was held 2 exclusively or almost exclusively the following activities in the German Democratic Republic including Berlin (East) to the subject has the subsidiary: the manufacture or delivery including export of goods except weapons of other types as a sporting and hunting weapons , the extraction of natural resources or the fulfilment of other commercial services or agricultural and forestry or freelance activities or hold a participation 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 has exclusively or almost exclusively the abovementioned activities in the German Democratic Republic including Berlin (East) to the subject , and 3. the conditions of the number of 2 by submitting relevant documents, in particular balance sheets and income statements and any annual reports of subsidiary, be proven; on request these documents with the prescribed examination certificate of an officially recognized auditing authority or equivalent body shall be provided, 4. the taxpayer and the affiliate agree to submit documents of the kind referred to in paragraph 3 for the marketing years following the loss year, as long as a reserve within the meaning of paragraph 1 is shown; the documents must the amount of the operating results achieved in these years undoubtedly result in subsidiary, 5 explains the subsidiary that it does not agree with the provision of information by the tax authorities of the German Democratic Republic including Berlin (East) to the domestic financial authorities, and 6. the formation and dissolution of the reserve in the accounts of the taxpayer can to be prosecuted.
(3) which is reserve solve 1 if the subsidiary during a marketing year following the year of loss of profit, an increase in profit, equal to the part of the profit, which sentence 2 to the nominal capital of the subsidiary is a ratio of the newly-acquired shares within the meaning of paragraph 1, where he the loss parts, which in the formation of the reserve, after paragraph 1 sentence 3 second half of sentence and sentence 4 remain unconsidered , or the resolution amount within the meaning of point 2 2 when a part of goodwill is made in a following on their education marketing year on the newly acquired shares within the meaning of paragraph 1 sentence 2 to the subsidiary exceeds, in the amount of the partial value depreciation, 3. If the taxpayer sells shares to the subsidiary or the assets transferred are equal to the part of the reserve , of which sold the share or convicted shares in the newly acquired shares within the meaning of paragraph 1 sentence 2 corresponds to in the private, 4. If the proof obligations referred to in paragraph 2 are not met no. 4 and 6, in full, no later than at the end of the fifth on their education following marketing year.
(4) paragraphs 1 to 3 shall apply mutatis mutandis for losses of a purchase or business cooperative with headquarters and management in the German Democratic Republic including Berlin (East).

§ 3 trade tax


The provisions of §§ 1 and 2 also apply to the commercial yield estimation according to § 7 of the trade tax law.

sections 4 and 5 - section 6 Berlin clause this law applies in accordance with § 12 para 1 of the third of Reconciliation Act also in the Federal State of Berlin.

Article 7 entry into force, application period (1) this Act enters into force on the day after the announcement. It is for the first time to apply for financial years ending 1990 during the investment period.
(2) a reserve can be made only according to § 1, if the assets are transferred before January 1, 1992.
(3) a reserve can be made only according to § 2, if the acquisition of new shares within the meaning of § 2 para 1 sentence 2 before 1 January 1992 has taken place. The formation of the reserve is excluded, insofar as attributable to a body carrier is the loss of subsidiary 1 according to sections 14 to 17 of the ITA or 2. when determining income of the subsidiary is deducted pursuant to section 10 d para 1 of the income tax act in conjunction with article 8, paragraph 1 and 5 of the ITA.