On 2 July 2026, the Ninth Act Amending Provisions of Tax Consultancy Law and Tax Law was published in the Federal Law Gazette. It introduces a whole range of changes that may directly affect tax advisers, their clients and also companies involved in property transactions.
An overview of what the Act covers
The Act contains amendments to the Tax Consultancy Act, the Trade Tax Act and the Land Transfer Tax Act. Some provisions apply immediately from the day following the Act’s promulgation, whilst others come into force on 1 September 2026 or only from 2027 onwards.
In future, income tax assistance associations will be allowed to provide more advice
One practical change affects members of income tax assistance associations. Until now, these associations were only permitted to provide assistance with income from letting and leasing if the annual income was less than 18,000 euros. This limit will be completely abolished from 1 September 2026. This means that anyone who receives rental income and is a member of an income tax assistance association will, in future, be able to seek advice there without any income restrictions.
Free tax advice and tax law clinics
Free assistance with tax matters remains permitted only for relatives within the meaning of tax law, such as partners, siblings or children. A new development is that, outside this group, at least guidance from qualified professionals will be permitted. Furthermore, so-called ‘Tax Law Clinics’ at universities will be expressly authorised. Under the supervision of experienced professionals, students will be able to offer free tax advice. This, too, will come into effect on 1 September 2026.
Restrictions on third-party ownership are being tightened
One particularly contentious issue concerns the structure of tax consultancy firms. Until now, there has been uncertainty as to whether audit firms holding a stake in a tax consultancy firm must themselves meet all the professional regulatory requirements. The Act now makes it clear: yes, they must. This is intended to prevent the prohibition on third-party ownership being circumvented through multi-tiered corporate structures, for example involving private equity investors. This provision comes into force immediately. It is as yet unclear whether tax advisory chambers will revoke any shareholdings that have already been approved.
Business tax: minimum rate rises significantly
From the 2027 tax assessment period onwards, the minimum trade tax assessment rate will be raised from the current 200 per cent to 280 per cent. The aim is to make it more difficult for companies to relocate to municipalities with low assessment rates for tax reasons. For businesses based in such low-tax municipalities, this could result in a significant additional financial burden.
Land Transfer Tax: New rules on signing and closing
In property transactions, there is sometimes a gap of several months between the signing of the contract and the transfer of ownership (closing). Previously, this posed the risk of a double land transfer tax liability. The law now expressly stipulates that the date of signing is the decisive factor. Furthermore, the notification periods for parties involved are uniformly set at one month. These changes apply to acquisitions taking place after the date of promulgation.
Furthermore, the presumption of joint ownership for the purposes of land transfer tax in the case of partnerships will be made permanent. Without this provision, it would have expired on 31 December 2026. This means that the existing legal position regarding property transfers within partnerships – which has been shaped by years of case law – will be maintained.
The Act contains a wide range of provisions with different dates of entry into force. Any business owner, tax adviser or property owner who may be affected by any of the changes described should keep an eye on the relevant deadlines and, if in doubt, seek tax or legal advice.
Source: Haufe: Tax
This article was created with the help of AI and has been editorially reviewed.
