The sale of an international subsidiary holding is not a final loss of assets

As a general rule, Changes in value of an international subsidiary holding (a holding of at least 10% in a foreign company held for at least one year) tax-neutral are. In Year of acquisition besteht aus Option for tax liability. Unless this option is chosen, depreciation losses cannot be claimed for tax purposes. This does not, however, apply to actual and final Losses of assets through liquidation or insolvency-related demise. Such Losses can - reduced by tax-free profit distributions of the last five years - over seven years spread out become applicable.

The Federal Fiscal Court (Official letter reference RV/5101743/2014 of 6.6.2018 or Official letter reference RV/6100553/2017 of 26.7.2018) has most recently dealt several times with whether a in the course of a sale an international holding realised loss also final capital loss regarded as being within the meaning of Section 10 (3) of the KStG. The BFG took the view that strict interpretation and held that a Sale no liquidation or insolvency proceedings represents and therefore due to lack of statutory cover The Capital loss not maintainable can. From an economic perspective, a parity of a disposal loss with a liquidation loss was therefore not accepted.

With this decision, the BFG is orienting itself towards the very restrictive case law des Supreme Administrative Court (GZ Ro 2014/13/0042 of 31 March 2017), which states that a final loss of assets only occurs when Graduation insolvency or Liquidation proceedings allows. With regard to the often quite complex and protracted procedures abroad, it is therefore often not easy to claim the losses that have actually already occurred. Overall, it is advisable to Termination a loss-making overseas commitment to plan carefully.