Wealth Tax Law (VStG)

Unofficial table of contents

VStG

Date of completion: 17.04.1974

Full quote:

" Wealth Tax Act as amended by the Notice of 14 November 1990 (BGBl. 2467), as last amended by Article 107 of the Law of 29. October 2001 (BGBl. 2785).

Status:	New by Bek. v. 14.11.1990 I 2467,
	Last amended by Art. 107 G v. 29.10.2001 I 2785

For more details, please refer to the menu under Notes

Footnote

(+ + + Text proof applicable: 1.1.1981 + + +) 
(+ + + For application cf.  § 25 + + +) 

  

The G was decided as Article 1 G 611-6-3-1 v. 17.4.1974 I 949 (VStrG) of the Bundestag with the consent of the Bundesrat. It's gem. Article 10 (2) of this Act entered into force on 1 January 1974.

I.
Tax liability, tax base

Unofficial table of contents

§ 1 Unlimited tax liability

(1) Unlimited assets are subject to tax

1.

natural persons who have a place of residence or habitual residence in the country;

2.

the following entities, persons ' associations and assets which have their head office or head office in the country:

a)

Capital companies (limited liability companies, limited partnerships, limited liability companies, liberal trade unions);

b)

cooperatives and cooperatives;

c)

reciprocity;

d)

other legal persons under private law;

e)

Associations, foundations and other assets of private law which are incapable of rights;

f)

Credit institutions under public law;

g)

Commercial enterprises within the meaning of the trade tax law of legal persons under public law, insofar as they do not already fall under the letter f. The commercial establishment also includes the leasing of a commercial enterprise, as well as shares in an open trading company, a limited partnership or a similar company, in which the shareholders are to be regarded as an entreprenter (entrepre) .

(2) Unlimited property tax obligations are also German nationals who

1.

have neither a place of residence nor their habitual residence in the country; and

2.

to a domestic legal person under public law in a service relationship and for that purpose relate to working wages from a domestic public cash register,

as well as members of their household who are of German nationality. This applies only to natural persons who, in the State in which they reside or have their habitual residence, are merely used in a level similar to that of limited tax on personal taxes. (3) Unrestricted Property tax liability extends to the total assets. (4) For the purposes of this Act, the share of the Federal Republic of Germany is also part of the continental shelf, where natural resources of the seabed and of the sea subsoil are is to be researched or exploited.

Footnote

Section 1 (1) (2) (b). d: In accordance with the decision formula, Article 3 (1) iVm Art. 9 (1), Art. 28 (1) sentence 2 GG is incompatible and void. BVerfGE v. 29.9.1998 I 3682-2 BvL 64/93- Unofficial table of contents

§ 2 Limited tax liability

(1) Limited taxable

1.

natural persons who do not have a place of residence or their habitual residence at home;

2.

Bodies, persons ' associations and assets which do not have their management or their head office in the country.

(2) The limited tax liability extends only to assets of the kind referred to in § 121 of the valuation law, which is attributable to the national territory. (3) By way of derogation from paragraph 2, the limited tax liability of a taxable person with residence shall apply. or habitual residence, place of business or place of management in a foreign country not to the domestic operating assets of the holding of own or chartered sea-going vessels or aircraft of a company whose Management is located in the foreign state. The tax exemption must be subject to the granting of a tax exemption for such assets by this foreign State to taxable persons residing or having their habitual residence, registered office or place of business in the territory of the country, and that: The Federal Ministry of Transport, Building and Housing has declared the tax exemption for transport policy harmless. Unofficial table of contents

§ 3 Liberation

(1) The property tax is exempt

1.

Deutsche Post AG, Deutsche Postbank AG, Deutsche Telekom AG, Bundeseisenbahnfortune, the Federal Government's monopoly administrations, the state lottery companies and the oil stocks association in accordance with Article 2 (1) of the Petroleum Law Provisions Act in the version of the Notice of 8 December 1987 (BGBl. I p. 2510)

1a.

2.

the Deutsche Bundesbank, the Kreditanstalt für Wiederaufbau, the Deutsche compensatory bank, the Landwirtschaftliche Rentenbank, the Bayerische Landesanstalt für AufbauFinancing, the Hessische Landesdevelopungs-und Treuhandgesellschaft mit beschränkter Liability, the Niedersächsische Gesellschaft für publicly Financing mit beschränkter Haftung, die Finanzierungs-Aktiengesellschaft Rheinland-Pfalz, die Hanseatische Gesellschaft für publicly Financing mit beschränkter Haftung Bremen, die Niedersächsische Gesellschaft für publicly Financing mit beschränkter Haftung Bremen, die Landeskreditbank Baden-Württemberg-Förderungsanstalt, the Bayerische Landesbodencreditanstalt, the investment bank Berlin-Anstalt der Landesbank Berlin-Girozentrale-, the Hamburgische Wohnungsbaucreditanstalt, the Niedersächsische Landescathandstelle für den Wohnungs-und Städtebau, die Niedersächsische Landescatter für den Wohnungs-und Städtebau, die Wohnungsbauförderungsanungsanstalt Nordrhein-Westfalen-Anstalt der Westdeutsche Landesbank Girozentrale-, the Niedersächsische Landescatter für Wirtschaftsförderung Norddeutsche Landesbank, the Landescattered handstelle für Agrarförderung Norddeutsche Landesbank, the Saarland Investment Credit Bank Aktiengesellschaft, the Investment Bank Schleswig-Holstein-Zentralbereich der Landesbank Schleswig-Holstein Girozentrale-, the Investment Bank of the State of Brandenburg, the Sächsische Aufbaubank, the Sächsische Aufbaubank GmbH, the Thuringian Foundation Bank, the Landesförderinstitut Sachsen-Anhalt-Business Unit of the Norddeutsche Landesbank Girozentrale Mitteldeutsche Landesbank-, the investment and structural bank of Rhineland-Palatinate, the Landesförderinstitut Mecklenburg-Vorpommern- Division of the Norddeutsche Landesbank Girozentrale-and the Liquidity Consortium Bank with limited liability;

2a.

the Staatsbank Berlin, the Treuhandanstalt;

3.

Undertakings which, by means of State contracts, are obliged to use the proceeds of their assets in order to raise funds for the construction of federal waterways, and undertakings whose income wholly or in part to such undertaking as long as and insofar as the assets of the undertakings are used exclusively for this purpose; § 101 of the Evaluation Act shall not apply;

4.

Entities directly responsible for teaching, education and training, physical education, health, health, welfare and youth care, regardless of the legal form in which they exist, if they belong to:

a)

the federal government, a country, a community, a community association, a special purpose association, or social security institutions,

b)

the religious societies, bodies of public law, and their institutions;

5.

legally-valid pension funds within the meaning of Section 5 (1) (3) of the Corporate Tax Law, insofar as they fulfil the conditions required for exemption from corporation tax. In the cases of Section 6 (1), (3) and (5) of the Corporate Tax Law, tax liability shall apply in each case for the calendar year following a calendar year for which the cash register is subject to corporate tax. In these cases, the cash benefits of the cash register are not deducted in the determination of the operating assets or the total assets. The part of the total assets shall be the proportion corresponding to the ratio in which the excess amount within the meaning of Section 6 (1) or (5) of the Corporate Tax Law on the assets within the meaning of Section 5 (1) (3) (d) or (e) of the the law of the corporation tax;

6.

smaller mutual insurance associations within the meaning of Section 53 of the Insurance Supervision Act, if they fulfil the conditions required for exemption from corporate tax;

6a.

the pension insurance association Versicherungsverein on reciprocity if it meets the conditions necessary for an exemption from corporate tax;

7.

Commercial and economic cooperatives as well as associations within the meaning of Section 5 (1) (14) of the Corporate Tax Law, insofar as they are exempt from corporate income tax. In the cases of waiver pursuant to Section 54 (5) sentence 1 of the Corporate Tax Law, the tax liability shall apply in each case for the calendar year for which the tax exemption is waived. In the cases of revocation pursuant to section 54 (5) sentence 3 of the Corporate Tax Law, the tax exemption shall apply for the calendar year for which it is to apply;

7a.

agricultural production cooperatives and their legal successor in the legal form of the cooperative, if they are exempt from the trade tax;

8.

Professional associations with no public-law character, as well as municipal top-level associations at the federal or state level, including their concentrations, if the purpose of these associations is not aimed at an economic business operation. The tax exemption is excluded,

a)

to the extent that the bodies or associations of persons have an economic business operation, or

b)

if the professional associations use funds of more than 10 per cent of the revenue for direct or indirect support or promotion of political parties.

Sentences 1 and 2 shall also apply to associations of legal persons governed by public law, which, like professional associations, exercise the general ideals and economic interests of their members;

9.

Bodies or associations of persons whose principal purpose is to manage the assets of a professional association of the type referred to in point 8, provided that their income is essentially derived from that asset management; and exclusively to the professional association;

10.

political parties within the meaning of Section 2 of the Political Parties Act and their territorial associations. Where an economic business operation is maintained, the tax exemption shall be excluded in that respect;

11.

public-law insurance and supply facilities of professional groups whose nationals are members of such bodies, on the basis of an obligation laid down by law or based on law, if the statutes of the institution are the payment shall not be allowed for any higher annual contributions than the twelve-fold of the contributions which, in the case of a contribution basis, are equal to the double monthly contribution limit in the pension insurance of the workers and employees would result. If the statutes of the institution permit only compulsory membership and voluntary memberships which directly adjoin a compulsory membership, this shall not preclude the exemption from tax if the statutes do not pay the payment of any higher annual contributions than the fifteen times the contributions which would result from a contribution assessment basis equal to the double monthly contribution rate in the pension insurance of the workers and employees;

12.

Entities, associations of persons and assets which, in accordance with the Articles of Association, the Foundation business or the other Constitution, and after the actual management, are exclusively and directly charitable, charitable or ecclesiastic Purpose. If an economic business operation is maintained, the tax exemption shall be excluded. The second sentence shall not apply to the self-employed forestry use of a farm in agriculture and forestry (Section 34 of the Evaluation Act) and to anceshals within the meaning of Section 42 of the Evaluation Act, which are used for this purpose;

13.

Commercial and economic cooperatives as well as associations within the meaning of Section 5 (1) (10) of the Corporate Tax Law, insofar as they are exempt from corporate income tax. In the cases of waiver pursuant to Section 54 (5) sentence 1 of the Corporate Tax Law, the tax liability shall apply in each case for the calendar year for which the tax exemption is waived. In the cases of revocation pursuant to section 54 (5) sentence 3 of the Corporate Tax Law, the tax exemption shall apply for the calendar year for which it is to apply;

14. (to be omitted);

15.

the non-profit settlement companies established or recognized by the competent national authorities within the meaning of the Reichssiedlungsgesetz in the revised version published in the Bundesgesetzblatt, Part III, outline number 2331-1, last amended by Article 2 (24) of the Law of 8 December 1986 (BGBl). 2191), and in the sense of the land reform laws of the countries, as far as the enterprises in rural areas implement settlement, agricultural structures improvement and land development measures with the exception of housing. The tax exemption shall be excluded if the revenue of the undertaking from the activities not specified in the first sentence exceeds the revenue from the activities referred to in the first sentence;

16.

Guarantee banks (credit guarantee communities) within the meaning of Section 5 (1) (17) of the Corporate Tax Law if they fulfil the conditions required for exemption from corporation tax;

17.

Entities, associations of persons and assets which, as the security establishment of an association of credit institutions, have the sole purpose, in accordance with their statutes or other constitution, in the event of a risk to the fulfilment of the obligations of the institutions of a credit institution. The condition is that the assets and surpluses achieved are used only for the purpose of achieving the statutory purpose. The rates 1 and 2 shall apply in accordance with institutions for the protection of savings in undertakings which were recognised as non-profit housing undertakings on 31 December 1989;

18.

the following capital investment companies for the small and medium-sized enterprises, in so far as their business operations are limited to the acquisition in the public interest by own funds or with State aid in the case of participations in the public interest, if that of them , profit is exclusively and directly used for the statutory purposes of equity financing: Mittelständische Beteiligungsgesellschaft Baden-Württemberg GmbH, equity investment company for the medium-sized economy Bayerns mbH, MBG Mittelresistsche Beteiligungsgesellschaft Hessen GmbH, Mittelständische Beteiligungsgesellschaft Niedersachsen (MBG) mbH, Kapitalbeteiligungsgesellschaft für die Mittelsche Wirtschaft in Nordrhein-Westfalen mbH, Mittelach Beteiligungs-und Wagnisfinanzierungsgesellschaft Rheinland-Pfalz mbH, Saarländische Kapitalbeteiligungsgesellschaft mbH, Gesellschaft für Wagnisventure Mittelresistsche Beteiligungsgesellschaft Schleswig-Holstein Gesellschaft mit beschränkter Haftung-MBG-, Technologie-Beteiligungs-Gesellschaft mbH of the Deutsche compensatory bank, bgb Beteiligungsgesellschaft Berlin mbH for small and medium-sized enterprises, Mittelständische Beteiligungsgesellschaft Berlin-Brandenburg mbH, Mittelständische Beteiligungsgesellschaft Mecklenburg-Vorpommern mbH, Mittelständische Beteiligungsgesellschaft Sachsen mbH, Mittelständische Beteiligungsgesellschaft Sachsen-Anhalt mbH, Mittelresistsche Beteiligungsgesellschaft Thüringen (MBG) mbH;

19.

Company participation companies that are based on the Law on Company Participation Societies of 17 December 1986 (BGBl. 2488) shall be recognised in the calendar year preceding the date of assessment. The revocation of recognition and the renunciation of recognition shall have effect for the past, if shares of the corporate equity firm have not been offered to the public. The modesty of the recognition, withdrawal or revocation of recognition and of whether shares of the holding company have been offered to the public are the basic modesty within the meaning of the tax system;

20.

economic development companies, if they are exempt from corporate income tax;

21.

Total liability companies within the meaning of § 1 of the Law on the creation of a special employer for dock workers of 3 August 1950 (BGBl. (352) to the extent that they are exempt from corporation tax;

22.

Mergers within the meaning of Section 5 (1) (20) of the Corporate Tax Law, insofar as they are exempt from corporate income tax;

23.

the working groups Medical service of health insurance within the meaning of § 278 of the Fifth Book of Social Code and the Medical Service of the Top Associations of the Health Insurance Funds within the meaning of § 282 of the Fifth Book of Social Code, to the extent that: they are exempt from corporate income tax.

(2) The exemptions provided for in paragraph 1 shall not apply to a limited taxable person (§ 2).

Footnote

(+ + + § 3 (1) no. 1: For the first application, see: Section 25 (7) sentence 1 F. from 1993-12-27 u. Section 25 (8) (f) from 1994-09-14 + + +)
(+ + + § 3 (1) 1a: For the last application, see: Section 25 (7) sentence 2 F. from 1993-12-21 + + +)
(+ + + § 3 (1) no. 2: For the first application, see: Section 25 (4) sentence 1 and Par. 5 sentence 1 F. from 1993-09-13 + + +)
(+ + + § 3 (1) No 11: For the first application, see: Section 25 (5) sentence 3 F. from 1993-12-21 + + +)
(+ + + § 3 (1) (12) sentence 3: For the purpose of application, see Section 25 (2) F. from 1992-02-25 + + +)
(+ + + § 3 (1) (16): For the first application, see: Section 25 (4) sentence 2 F. from 1995-12-18 + + +)
(+ + + § 3 (1) no. 18: For the first application, see: Section 25 (9) sentence 3 F. from 1995-10-11 + + +)
(+ + + § 3 (1) n. 20: For the first application, see Section 25 (5) sentence 4 F. from 1993-12-21 + + +)
(+ + + § 3 (1) (22): For the first application, see Section 25 (5) sentence 4 F. from 1993-12-21 + + +)
(+ + + § 3 (1) no. 23: For the first application, see: Section 25 (4) sentence 2 F. from 1995-12-18 + + +)
§ 3 (1) No. 10 sentence 1: In accordance with the decision formula, Article 3 (1) iVm Art. 9 (1), Art. 28 (1) sentence 2 GG is incompatible and void. BVerfGE v. 29.9.1998 I 3682-2 BvL 64/93- Unofficial table of contents

§ 4 Tax base

(1) The wealth tax is subject to

1.

in the case of unrestricted taxable persons, the total assets (§ § 114 to 120 of the valuation law);

2.

in the case of limited taxable persons, the domestic assets (Section 121 of the Evaluation Act).

(2) The value of the total assets or domestic assets shall be rounded down to full thousand German marks. Unofficial table of contents

§ 5 Date of reference for the determination of the wealth tax, creation of the tax

(1) The property tax shall be determined in accordance with the conditions at the beginning of the calendar year (assessment date, § § 15 to 17). (2) The tax shall be incurred at the beginning of the calendar year for which the tax is to be determined.

II.
Tax Calculation

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§ 6 Free amounts for natural persons

(1) In the case of an unrestricted taxable natural person, 120,000 German marks remain and, in the case of the conscription of spouses, 240,000 German marks remain tax-exempt. (2) For each child who is subject to a taxable person or with spouses, another 120,000 German Marks are tax-free. Children in the sense of the law are married children, for ehelich explained children, non-children, stepchildren, adoptive children and foster children. (3) Another 50,000 German marks are tax-free if the taxable person is the 60. is completed or is likely to be impeded for at least three years in the sense of the severely disabled law with a degree of disability of 100. If several taxable persons are assessed together (Section 14 of the German Property Tax Act), the amount of the allowance is multiplied by the number of taxable persons who are subject to the conditions of the first sentence of sentence 1. (4) Unofficial table of contents

§ 7 Free amount for acquisition and business cooperatives, as well as clubs, agriculture and forestry

(1) In the case of the apportionment of the national cooperatives and economic cooperatives as well as of the domestic associations whose activity is limited to the operation of agriculture and forestry, 100,000 Deutsche Marks remain in the following years ten calendar years of wealth tax. The condition is that:

1.

Leave the members of the cooperative or the association land to be used for use or for the management of the land, and

2.

a)

in the case of cooperatives, the ratio of the sum of the shares of the individual Member's shares to the sum of the values of all shares;

b)

in the case of clubs, the ratio of the value of the share of the club's assets which would fall to the individual member in the event of the dissolution of the association, to the value of the club's assets

is not significantly different from the ratio in which the value of the areas and buildings left to use by the individual member is the value of the total area and buildings used for the use.

(2) The first sentence of paragraph 1 shall also apply to domestic purchasing and economic cooperatives as well as to domestic clubs which operate a Community animal husbandry within the meaning of Section 51a of the valuation law. Unofficial table of contents

§ 8 Taxation limit for corporate bodies and for limited taxable persons

(1) In the sense of Section 1 (1) (2) of the unlimited taxable corporate bodies, personal associations and property funds, the property tax is only levied if the total assets (§ 4) are at least 20,000 German marks. (2) Only if the domestic assets (§ 4) are at least 20,000 German Marks, the property tax is only levied on taxable persons. Unofficial table of contents

Section 9 taxable assets

Taxable assets

1.

for unrestricted taxable persons

a)

in the case of natural persons, the amount of the assets remaining after deduction of the allowances (§ 6) of the total assets (§ 4),

b)

in the case of corporate bodies, associations of persons and property (§ 1 para. 1 no. 2) with at least 20,000 Deutsche Mark total assets total assets (§ 4);

2.

in the case of restricted taxable persons with at least 20,000 Deutsche Mark Inland assets, the domestic assets (§ 4).

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§ 10 tax rate

The wealth tax is annual

1.

for natural persons 1 of the hundred of the taxable assets. It amounts to 0.5 per cent of the taxable assets, to the extent that the taxable assets contain agricultural and forestry assets, operating assets and economic goods within the meaning of Section 110 (1) (3) of the valuation law; the value of this assets is to be rounded up to full thousand German marks;

2.

for the entities referred to in Article 1 (1) (2) and (2) (1) (2), persons ' associations and assets, shall be 0.6 of the hundred of the taxable assets.

Footnote

§ 10 No. 1: In accordance with the decision formula, in part incompatible with the GG. BVerfGE v. 22.6.1995 I 1191-2 BvL 37/91- Unofficial table of contents

§ 11 Invoice of foreign taxes

(1) In the case of unrestricted taxable persons who are used in a foreign country with their assets situated in that State (foreign assets) to a tax (foreign tax) corresponding to the domestic wealth tax, if: are not to be applied to the provisions of an agreement to avoid double taxation, to apply to the part of the property tax the fixed and paid foreign tax which is not subject to a reduction claim and to the part of the property tax on the part of the property tax Foreign assets are not required. This part is to be determined in such a way that the wealth tax arising from the assessment of the total assets (including foreign assets) is divided in the ratio of the foreign assets to the total assets. If the foreign assets are situated in different foreign countries, this part must be calculated separately for each foreign country. The foreign tax is to be calculated in so far as it does not apply to the calendar year commending with the respective date of assessment. (2) As foreign assets within the meaning of paragraph 1, all economic goods are subject to the provisions of section 121 (2) of the (3) (4) The taxable person shall have proof of the amount of the debt to be deducted. (3) (4) The taxable person shall have proof of the amount of the debt and the amount of the debt. Foreign assets and on the setting and payment of foreign taxes by presentation of appropriate documents. If these documents are written in a foreign language, a certified translation into the German language may be required. (5) In accordance with an agreement to avoid double taxation in a foreign country, taxes levied on the (6) In the case of assets situated in a foreign country and the domestic and forestry assets or to the domestic economy, paragraphs 1 to 4 shall apply in accordance with the provisions of paragraphs 1 to 4 of this Article. The operating assets of a limited taxable person shall be included in the where it does not contain assets in which the limited taxable person is subject to a tax of assets similar to that of unrestricted tax liability there. Unofficial table of contents

§ 12 Tax reduction for foreign assets

(1) Instead of an offsetting of foreign taxes in accordance with § 11 (1) to (4), on the request of the taxable person, the wealth tax arising from foreign operating assets (§ 11 para. 1 sentence 2 and 3) shall be reduced to half. Sentence 1 shall apply to:

1.

the operating assets of a permanent establishment situated in a foreign country if, in the marketing year preceding the valuation date (§ 106 of the Evaluation Act), the gross yields of that establishment are exclusively or almost are obtained exclusively from activities covered by Article 8 (1) (1) to (6) of the Foreign Tax Act; and

2.

the participation in a personal company (Section 97 (1) (5) of the Evaluation Act) or the working group (Section 98 of the Evaluation Act), which is part of the operating assets of a domestic business enterprise, in so far as the participation in the company's assets , a permanent establishment within the meaning of point 1 situated in a foreign country is not required.

The application for a reduction must cover all the assets within the meaning of the second sentence of sentence 2 and 2; it may be limited to the assets situated in a foreign country or by a number of foreign countries. (2) If that is the case in a foreign country, the amount of the assets in question must be limited to the amount of the -the tax reduction referred to in paragraph 1 assumes that the Federal Ministry of Transport, Building and Housing has declared them harmless in terms of transport policy, and assumes the duty to operate commercial vessels in international transport. The application for a reduction must include all operating assets situated in foreign countries. Ships registered in a domestic ship register do not belong to the operating assets situated in a foreign country. The provisions of this paragraph shall also apply where there is an agreement with the State in which the assets are situated to avoid double taxation. (3) The supreme financial authorities of the countries or the representatives of the countries which have been mandated by them Financial authorities, in agreement with the Federal Ministry of Finance, may issue, in whole or in part, the German wealth tax on foreign assets, or fix it in a lump sum if it is for economic reasons (4) The application of § 11 para. 1 is particularly difficult. (4) Unofficial table of contents

§ 13 General tax on limited tax liability

In agreement with the Federal Ministry of Finance, the supreme financial authorities of the countries or the financial authorities responsible for them may, in agreement with the Federal Ministry of Finance, enact the wealth tax, in whole or in part, or in a lump sum. if it is particularly difficult for economic reasons or if it is particularly difficult to determine the wealth tax.

III.
Assessment

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§ 14 Concentration

(1) Unlimited tax liability of all parties concerned shall be assessed together

1.

Spouse, if they do not live separately,

2.

Spouses and children (§ 6 para. 2 sentence 2) or individuals and children, if they form a household community and the children are 18. They have not completed their life year.

(2) In the case of unrestricted tax liability of all parties concerned, the joint application shall be accompanied by the assessment of spouses or individuals.

1.

with unmarried or permanently separated children, the 18., but not yet the 27. are completed when the applicants form a household community and the children are still in vocational training or a voluntary social year as defined in the Law on the Promotion of a voluntary social year or a voluntary ecological year in accordance with the law to promote a voluntary ecological year. The confederation is not excluded by the fact that vocational training is interrupted by the convocation to the statutory basic military service or civil service. The kids have the 27. In the case of completion of the vocational training, the concentration shall only be allowed if the completion of the vocational training has been delayed by circumstances which none of the applicants have to represent. Such a circumstance shall always be regarded as the performance of the statutory basic service or civil service;

2.

with children, if they are permanently unable to entertain themselves because of physical, mental or mental disabilities.

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§ 15 Main assessment

(1) The wealth tax shall be fixed in general for three calendar years (main assessment). The period for which the main assessment applies is the main assessment period; the beginning of this period is the main assessment date. (2) The Federal Government is authorized to do so by means of a legal regulation with the consent of the Federal Council for reasons. (3) If the period of fixing (Article 169 of the Tax Code) has already expired, the main assessment may be based on the circumstances of the Main assessment time with effect for a later the date of assessment for which this period has not yet expired. Unofficial table of contents

§ 16 New assessment

(1) The wealth tax shall be reassessed if the tax office is known;

1.

that the conditions for the condisposition change;

2.

that, subject to the provisions of point 1, the conditions for the determination of the wealth tax have changed in relation to the conditions on which the assets tax last fixed has been applied and the wealth tax is increased upwards by at least 1,000 German marks or downwards by at least 250 Deutsche Mark from the last fixed asset tax.

(2) A new assessment in accordance with paragraph 1 may also eliminate errors of the last apportionment. § 176 of the Tax Code shall be applied accordingly. This applies, however, only to points of assessment which lie before the proclamation of the relevant decision of a Supreme Court of the Covenant. (3) New assessment is made

1.

in the cases referred to in paragraph 1, point 1, with effect from the beginning of the calendar year following the change in the circumstances of the conscription;

2.

in the cases referred to in paragraph 1 (2), with effect from the beginning of the calendar year in respect of which the discrepancy in the property tax is obtained;

3.

in the cases referred to in paragraph 2, with effect from the beginning of the calendar year in which the error is known to the tax office, but in the event of an increase in the property tax at the earliest from the beginning of the calendar year in which the tax notice is issued.

The beginning of the relevant calendar year shall be the date of reassessment. Section 15 (3) shall apply accordingly. Unofficial table of contents

§ 17 Post-assessment

(1) The wealth tax shall be fixed retrospectively if, after the main assessment date, the

1.

the personal tax liability is reestablished, or

2.

a personal liberation reason, or

3.

a limited taxable person will be subject to unlimited tax liability or a tax subject limited to unlimited tax liability.

(2) A post-assessment shall be made with effect from the beginning of the calendar year following the relevant event. The beginning of this calendar year shall be the date of reassessment. Section 15 (3) shall apply accordingly. Unofficial table of contents

Section 18 Repeal of the apportionment

(1) It is known to the tax office that:

1.

the tax liability or a personal reason for exemption has occurred, or

2.

the predisposition is flawed,

The apportionment shall be lifted. (2) The apportionment shall be repealed

1.

in the cases referred to in paragraph 1, point 1, with effect from the beginning of the calendar year following the occurrence of the relevant event;

2.

in the cases referred to in paragraph 1, point 2, with effect from the beginning of the calendar year, in which the error is known to the tax office.

The beginning of the relevant calendar year shall be the date of cancellation. Section 15 (3) shall apply accordingly. Unofficial table of contents

Section 19 Oblige to submit asset tax returns

(1) Property tax returns shall be made at each main assessment date. For other assessment times, a statement shall be made on who is required to do so by the financial authority (Section 149 of the Rules of the Tax Code). The assets tax returns are to be signed by the property tax payer by hand. (2) From the unrestricted property taxable persons have to submit a wealth tax return on their total assets.

1.

natural persons,

a)

that will be assessed alone if their total assets exceed 120,000 Deutsche Mark,

b)

which are assessed together with other persons (§ 14) if the total assets of the jointly assessed persons exceed the amount which results if 120,000 German marks are set for each of the persons assessed together;

2.

the entities referred to in Article 1 (1) (2), persons ' associations and assets, if their total assets are at least 20,000 German marks.

(3) Restricted property taxable persons shall make a declaration of property tax on their domestic assets if it is at least 20,000 German Marks. (4) The declarations shall be made within the time limit laid down by the Federal Ministry of the Finances in agreement with the supreme financial authorities of the countries. The deadline is to be published in the Federal Gazette. Where the financial authority is particularly demanding to make a statement on the main assessment or on another assessment (Article 149 (1), second sentence, of the tax code), it shall set a specific time limit which shall be at least one month.

IV.
Control Direction

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§ 20 Payment of annual tax

(1) The tax is due for one quarter of the annual tax on 10 February, 10 May, 10 August and 10 November. An annual tax of up to 500 Deutsche Mark is to be paid in an amount on 10 November. (2) The amount of the property tax is to be deducted if the annual tax does not exceed the amount of 50 Deutsche Mark. Unofficial table of contents

Section 21 Prepayments

(1) As long as the annual tax has not yet been announced, the taxable person has to pay advance payments to the annual tax. (2) The advance payments amount to one quarter of the annual tax fixed last. They are due to be paid on 10 February, 10 May, 10 August and 10 November. If the annual tax is not more than 500 Deutsche Mark, the advance payments are to be paid in an amount on 10 November. (3) The tax office can adjust the advance payments of the tax, which are likely to arise for the calendar year . Unofficial table of contents

Section 22 reckoning on advance payments

(1) If the sum of the advance payments which were to be paid up to the announcement of the tax ruling (§ 21) is less than the tax which results after the announced tax decision for the previous days of maturity (§ 20), the The difference shall be paid within one month after the date of the announcement of the tax (repayment). The obligation to pay back advance payments already in the past remains unaffected. (2) Is the sum of the advance payments paid up to the date of the announcement of the tax ruin higher than the tax paid after the tax refund. (3) The provisions of paragraphs 1 and 2 shall apply mutatis-nly if the amount of the tax notice for the preceding days of maturity is notified. (3) The amount of the tax is calculated on the basis of the The tax notice is cancelled or amended. Unofficial table of contents

Section 23 Follow-up of the tax

If the taxable person had not paid any advance payments in accordance with § 21 until the announcement of the annual tax, he has the tax, which follows the announced tax decision for the previous days of maturity (§ 20), within one Month after notification of the tax notice.

V.
Final provisions

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Section 24 Recast

The Federal Ministry of Finance is authorized to disclose the text of this Act in the current version with a new date, under new heading and in new paragraph order, and in doing so, shall be open to reveal inaccuracies and To remove inconsistencies in the wording. Unofficial table of contents

§ 24a

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Section 24b Waiving of the capital tax of the converted former wholly-owned combined enterprises, establishments and facilities for the second half of 1990

In the case of former fully-owned combinates, establishments and facilities which are based on the Trust Act of 17 June 1990 (GBl. 300) in limited liability companies or companies with limited liability, the property tax will not be fixed retrospectly to 1 July 1990. Section 1 (2) and Section 2 (1) and (5) of the Regulation on the payment of taxes of the former wholly-owned combined companies, businesses and institutions converted into capital companies in the second half of 1990 of 27 June 1990 (GBl. No 41 p. 618) are not to be applied to the extent that there have been arrangements for the establishment and collection of the wealth tax for the second half of 1990.

Footnote

(+ + + § 24b: For application cf. Section 25 (3) F. from 1992-02-25 + + +) Unofficial table of contents

§ 24c Temporary special provision for the taxation of assets in the territory referred to in Article 3 of the agreement

In the case of the wealth tax of the calendar years 1996 to 1998, the following shall apply in the territory referred to in Article 3 of the Agreement:

1.

Subject to sentence 3, the capital duty shall be exempt from the wealth tax

a)

natural persons residing or having a habitual residence,

b)

Corporate bodies, associations of persons and assets within the meaning of Section 1 (1) (2) with Executive Management

in the area referred to in Article 3 of the agreement. Section 19 (1), second sentence, and section 20 (2) of the tax code shall apply mutadenly. The economic goods of a commercial establishment are not exempt, insofar as a permanent establishment is maintained for this purpose outside the territory of the Federal Republic of Germany referred to in Article 3 of the Einigungscontracges (Einigungstreaty) or a permanent representative is ordered. Section 136 (3) (a), second sentence, of the valuation law applies accordingly. By way of derogation from § § 19 and 20 of the Tax Code, the tax office in the territory of the Federal Republic of Germany referred to in Article 3 of the Agreement of the Federal Republic of Germany shall be responsible for taxation on the basis of the assets, in the district of which the Office of the Federal Republic of Germany Operating assets, and, if applicable to several financial offices, the tax office in whose district the most valuable part of the operating assets is located.

2.

German nationals who are exempt from the property tax are also exempt from

a)

have neither a place of residence nor their habitual residence in the country; and

b)

are in a service relationship with a legal person under public law in the territory referred to in Article 3 of the agreement and, for that purpose, receive working wages from a domestic public cash register,

as well as members of their household who are of German nationality.

3.

Points 1 and 2 shall not apply to taxable persons who, after 31 December 1990, have established a place of residence in the territory referred to in Article 3 of the Agreement or are the first to have their habitual residence, their management or in the cases referred to in the second sentence of point 1, their registered office.

4.

The limited tax liability extends only to assets of the kind referred to in § 121 of the valuation law, which is not applicable to the territory of the country, except for the area referred to in Article 3 of the agreement.

Footnote

(+ + + § 24c: For the first application, see Section 25 (9) sentence 2 F. from 1995-10-11 + + +) Unofficial table of contents

Section 25 Application of the law

(1) The above-mentioned version of the law is, unless otherwise specified in the following paragraphs, to apply for the first time to the property tax of the calendar year 1995. (2) § 3 (1) No. 12 sentence 3 is also applicable to the wealth tax of the calendar years to apply before 1990, to the extent that they are not yet in force or under the reservation of the investigation. (3) § 24b is to be applied for the second half of 1990. (4) § 3 para. 1 no. 2 is for the investment bank Schleswig-Holstein- Central area of the Landesbank Schleswig-Holstein Girozentrale-, the investment bank of the country Brandenburg, the Sächsische Aufbaubank and the Thüringer Aufbaubank for the first time on the wealth tax of the calendar year 1991, for the Landesförderinstitut matters-Anhalt-Business Unit of the Norddeutsche Landesbank Girozentrale Mitteldeutsche Landesbank -for the first time on the capital tax of the calendar year 1993, for the investment and structural bank Rheinland-Pfalz for the first time on the asset tax of the calendar year 1994 and for the Sächsische Aufbaubank GmbH for the first time on the wealth tax of the Calendar year 1996. § 3 (1) Nos. 16 and 23 shall apply for the first time to the property tax of the calendar year 1991. (5) § 3 para. 1 no. 2 is for the housing construction site Nordrhein-Westfalen-Anstalt der Westdeutsche Landesbank Girozentrale-for the first time on the Capital tax of the calendar year 1992 and for the investment bank Berlin-Anstalt der Landesbank Berlin-Girozentrale-apply for the first time to the wealth tax of the calendar year 1993. Section 3 (1) No. 2 in the version of the notice of 14 November 1990 (BGBl. 2467) for the Land of North Rhine-Westphalia's Housing Fund for the Housing Fund for the calendar year 1991 and for the residential building loan institution Berlin was last used for the capital tax of the calendar year 1992. Section 3 (1) No 11 shall apply for the first time to the property tax of the calendar year 1992. § 3 (1) Nos. 20 and 21 in the version of Article 10 of the Law of 13 September 1993 (BGBl. I p. 1569) and § 3 (1) No. 22, as amended by Article 17 of the Law of 21 December 1993 (BGBl. 2310) shall be applied for the first time to the wealth tax of the calendar year 1993. § 3 (1) no. 18 is in the version of Article 15 of the Law of 25 February 1992 (BGBl. 297) for the first time on the property tax of the calendar year 1992 and for the bgb Beteiligungsgesellschaft Berlin mbH for small and medium-sized enterprises, Mittelcontinusche Beteiligungsgesellschaft Berlin-Brandenburg mbH, medium-sized enterprises Beteiligungsgesellschaft Mecklenburg-Vorpommern mbH, Mittelständische Beteiligungsgesellschaft Sachsen mbH, Mittelständische Beteiligungsgesellschaft Sachsen-Anhalt mbH, Mittelständische Beteiligungsgesellschaft Thüringen (MBG) mbH for the first time on the Asset tax of the calendar year 1994. (6) § 14 para. 2 No. 1 in the version of the Article 3 (5) (1) of the Law of 17 December 1993 (BGBl. 2118) is to be applied for the first time to the wealth tax of the calendar year 1994. (7) § 3 para. 1 no. 1 for the Federal Railway assets is to be applied for the first time to the wealth tax of the calendar year 1994. Section 3 (1) No 1a is to be applied last for the property tax of the calendar year 1993. (8) § 3 (1) No. 1 is to be applied to Deutsche Post AG, Deutsche Postbank AG and Deutsche Telekom AG only for the asset tax of the calendar year 1995. § 3 (1) No. 1 in the version of Article 6 (55) of the Law of 27 December 1993 (BGBl. 2378) is to be applied for the Deutsche Bundespost last for the wealth tax of 1994. (9) § 24c in the version of Article 10 of the Law of 13 September 1993 (BGBl. 1569) shall apply to the wealth tax of the calendar years 1991 to 1995. § 24c, as amended by Article 23 of the Law of 11. October 1995 (BGBl. 1250) shall be applied for the first time to the wealth tax of the calendar year 1996. Section 3 (1) (18), as amended by Article 23 of the Law of 11. October 1995 (BGBl. I p. 1250) is to be applied for the first time to the property tax of the calendar year 1996 for the Gesellschaft für Wagnisventure Mittelresistsche Beteiligungsgesellschaft Schleswig-Holstein Gesellschaft mit beschränkter Haftung-MBG. § 3 (1) No. 18 in the version of Article 17 of the Law of 21 December 1993 (BGBl. I p. 2310) for the Schleswig-Holsteinische Gesellschaft für Wagnisedly mbH is to be used for the last time for the asset tax of the calendar year 1995.