Firmengruendung.de / Thursday, February 21, 2019 / Categories: Limited (UK), Brexit The new § 12 paragraph 4 of the Corporate Income Tax Act - tax protection for the Limited Note: The contents of this post have been partially outdated due to changes in the legal situation. Please also refer to our more recent posts on this topic. On February 20, 2019, the Finance Committee presented its recommendation for approval and report on the draft law accompanying Brexit tax legislation. 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 continuously attribute to its business assets that were attributable to it before the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union." Based solely on the wording of this provision, it would be limited to Limited companies that were founded before Brexit. However, the explanation of the amendment explicitly references the supreme court jurisprudence of the BFH on 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), which could suggest that this regulation should be interpreted broadly and that the last half-sentence of § 12 (4) KStG should be understood as a clarification that Brexit itself is not a triggering event. Previous Article After Brexit, the tax situation for the LTD should remain the same - amendment proposals from the coalition factions. Next Article No Property Acquisition Tax Due to Brexit Print 3416 Tags: § 12 Absatz 4 KStGBestandsschutz LimitedBrexitBrexit SteuerbegleitgesetzTypenvergleich Documents to download Bundestag Drucksache197959(.pdf, 985.25 KB) - 91 download(s) Related articles The Legal Capacity of the Limited after Brexit Letter from the Tax Office Recognizing the Limited Company after Brexit The Free Trade Agreement Between the EU and the UK and Its Impact on the Limited Company in Germany LTD shareholders as a company subject to VAT according to § 2 UStG No Property Acquisition Tax Due to Brexit