02. Dec 2024

Editorial

Dear Readers, 

The last issue of the PKF Magazine for this year begins with a small selection of tax changes resulting from the German 2024 Annual Tax Act (JStG), which - despite the collapse of the 'traffic light' coalition - has now been adopted. Most of the new regulations are relatively detailed changes to existing norms as a response to the stipulations of the courts as well as of national and international authorities. Significantly, it is precisely those changes in the JStG 2024 that will affect small enterprises that can best be described as a reform. Furthermore, in the second tax-related report, we provide an update on the legal status regarding real estate tax; in this respect, the courts are considering the various models of the Länder (Federal States) that are being used to calculate this tax. In addition, we take a look at three different models for employee share schemes. In its recent circular, the fiscal administration likewise considered this topic, in the best possible sense, in order to help companies and their employees to overcome any uncertainties.

In the Accounting & Finance section we discuss the so-called Root Theory (Wurzeltheorie); this is relevant for the categorisation of events occurring after the balance sheet date.  Our report here deals with the question of if and under what circumstances an event that only becomes known in the new period has to already be accounted for in the period that has just ended. In a further report, we examine the topic of sustainability, for once, from a different perspective. This time, not viewing it as a burdensome obligation for another field of compliance, but instead embracing the challenges of protecting water, air and the ocean as an opportunity for a suitably adapted corporate strategy

In our Legal section, under the working title of the Bureaucracy Reduction Act the topic is the new legal norms, although this together with the JStG 2024, unfortunately, cannot be described as a major achievement.

To round things off we also have various shorter reports. The topics covered are: pitfalls for influencers, inheriting despite divorce, protection for whistleblowers, the short-time working allowance and the taxation of earn-out payments

You can look forward to an interesting read. Wishing you and your families a lovely Christmas season,
Your PKF Team

Witty remark

Laws are like sausages; it is better not to see them being made.

Otto von Bismarck (1.4.1815 - 30.7.1898) served, from 1871 to 1890, as the first Chancellor of the German Empire, whose foundation he decisively drove forward. Bismarck is considered to be the father of the modern welfare state.