§ 12 para 4 was repealed in 2021. At the same time, the following changes were introduced:

§ 34 para 3c KStG
§ 8 para 1 in the version of Article 3 of the Act of June 25, 2021 (Federal Law Gazette I p. 2056) is also to be applied to assessment periods before 2021

§ 34 para 6d KStG
§ 12 para 4 in the version applicable on June 30, 2021, is to be applied for the last time for the assessment period 2020.

§ 8 para 1 sentence 4 KStG
For corporations as defined in § 1 para 1 with headquarters abroad, whose place of management is located domestically and which are not to be treated as legal persons under domestic corporate law due to lack of legal capacity, services and promises of services between the corporation and persons who earn income as defined in § 20 para 1 number 1 and 9 of the Income Tax Act from this corporation, are to be treated for the purposes of implementing taxation with income taxes like services and promises of services between a legal corporation and its shareholders.

On February 20, 2019, the Finance Committee presented its recommendation for approval and report on the draft legislation for the Brexit Tax Accompaniment Law. The draft includes, among other things, an amendment to § 12 of the Corporation Tax Act. A new paragraph 4 is to be added, which reads as follows:

"(4) A corporation with unlimited tax liability located in the United Kingdom of Great Britain and Northern Ireland shall continue to have the business assets attributed to it that were attributed to it before the withdrawal from the European Union."

According to the literal wording of this provision, this would be limited to limited liability companies that were established before Brexit. However, the explanation to the amendment explicitly references the supreme court jurisprudence of the Federal Finance Court on the type comparison for companies from third countries (judgments of June 23, 1992, BStBl II p. 972, and of September 8, 2010, BStBl II 2013 p. 186), suggesting that this regulation might be interpreted broadly and that the last half-sentence of § 12 para. 4 KStG should be understood as clarifying that Brexit itself is not a triggering event.