The “Wegzugsbesteuerung” (exit tax) according to § 6 AStG is a nuisance for founders who are taxable in Germany as well as other private persons who hold (or have held in the five years before the departure) 1% percent or more in limited corporations: The actual departure of natural individuals from Germany leads to a fictitious taxable disposition (and thus Dry Income). The Münster Fiscal Court wanted to apply the departure taxation even in the case of a return within five years. This has now been contradicted by the Federal Fiscal Court (ruling of December 21, 2022, I R 55/19).
Dr. Henning Frase discusses the BFH ruling in issue 19/2023 of the magazine DER BETRIEB and, in summary, in our blog.
