Valuation of business assets for inheritance tax purposes

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The valuation of business assets for inheritance tax purposes was fundamentally reformed on January 1, 2009 and is regulated in Sections 157 to 203 of the Valuation Act. In principle, the value of the business assets is determined using the simplified income approach. In addition, the net asset value must be calculated as a minimum value. The determined value is still subject to various allowances . According to the legislative will, the valuation method should result in the most accurate market value of the business and avoid costly individual reports.

Opportunities for business asset valuation

Each company forms a so-called economic unit for itself . This means that the company is valued as a whole instead of calculating a value for each asset individually. Business assets include everything that is assigned to assets for income tax purposes. In § 96 BewG it is explicitly stated that freelance companies (tax consultants, doctors, etc.) are valued in the same way as commercial companies. In principle, the business assets are to be valued at their fair value ( Section 109 ) BewG. Section 109 BewG refers to Section 11 (2) BewG, so that the same principles apply as for shares in corporations. Section 11 BewG names the following assessment options:

  • Derivation of the value from sales between unrelated third parties that were less than a year ago.
  • Another method that is used for non-tax purposes and that an acquirer would use to calculate the purchase price - an expert opinion or something similar. However, the tax office is not bound by the report prepared by the taxpayer.
  • Calculation of the value according to §§ 199 - 203 BewG (simplified income value method)
  • Substance value as a minimum value

Determination of the business asset

The heir of the company must fill out the forms "Investment of business assets", "Attachment of simplified capitalized earnings method" and "Investment of asset value determination". The tax office, in whose district the management of the company is located, then determines the business asset value and issues a notification of the separate determination, which then serves as the basis for the inheritance tax or gift tax calculation.

criticism

In a ruling of December 17, 2014, the Federal Constitutional Court ruled that the overprivileging of corporate assets for inheritance tax purposes was unconstitutional. However, the unconstitutionality does not extend to the assessment level, but only to the exemptions applicable in a second step ("exemption discounts" ).

Web links

Individual evidence

  1. ↑ BVerfG, ruling v. December 17, 2014 - 1 BvL 21/12