Germany has published the Ninth Act Amending Provisions in Tax Consultancy Law and Tax Law, introducing reforms to the Tax Advisory Act alongside changes to real estate transfer tax, trade tax, FATCA reporting and income tax, with most provisions taking effect from 1 September 2026.
Germany published the Ninth Act Amending Provisions in Tax Consultancy Law and Tax Law in the Official Gazette on 2 July 2026.
The legislation introduces extensive reforms to the regulation of tax advisors and tax advisory organisations while amending several tax laws, including the Real Estate Transfer Tax Act, Trade Tax Act, Fiscal Code and Income Tax Act.
Trade tax measures
A key element of the reform is an increase in the minimum trade tax multiplier (Mindesthebesatz) from 200% to 280%.
The measure is intended to discourage companies from relocating to municipalities with particularly low trade tax rates for tax planning purposes. The higher minimum rate is scheduled to apply from the 2027 assessment period.
Real estate transfer tax changes
The legislation introduces significant amendments to real estate transfer tax (Grunderwerbsteuer) rules for share transactions involving property-owning companies.
Under the new rules, the taxation priority is reversed so that the obligation transaction (signing) takes precedence over the actual transfer of shares (closing). The change is intended to prevent situations in which the same transaction could be taxed twice when signing and closing occur at different times.
To support the revised framework, notification periods for parties involved in such transactions will be extended to one month. The legislation also preserves existing tax benefits available to partnerships.
Liberalisation of tax advisory services
A central focus of the reform is the reorganisation and liberalisation of rules governing the provision of tax assistance.
The legislation authorises the creation of “Tax Law Clinics” at universities, enabling students to provide unpaid tax assistance for educational purposes under professional supervision.
The reforms also modernise the framework for income tax assistance associations (Lohnsteuerhilfevereine). Such organisations will now be required to operate as registered associations (eingetragene Vereine), providing greater protection against personal liability for individuals acting on their behalf.
In addition, existing income thresholds that previously limited the scope of advice on certain categories of income, including rental income, will be removed. This expands the range of services that these associations may provide to their members. The abbreviation “LStHV” will also be formally recognised for legal and official use.
The legislation further permits tax assistance to be provided as an ancillary service where it forms part of another recognised professional activity, such as advice on tax incentives offered by energy consultants.
Administrative simplification
To reflect advances in digital working practices, the law removes the requirement for tax advisory firms to appoint a separate manager for additional branch offices.
The reform also extends the presumption of valid authorisation to notaries and patent attorneys. As a result, these professionals will generally no longer be required to submit powers of attorney in individual cases, reducing administrative procedures.
Additional simplification measures include the removal of cultivation register requirements for farmers and foresters where alternative forms of evidence, such as forest management plans, are available.
International and indirect tax provisions
The legislation updates Germany’s implementation of the US Foreign Account Tax Compliance Act (FATCA). Where a US taxpayer identification number is unavailable, financial institutions will be permitted to report an account holder’s date of birth together with the tax identification number of their country of residence.
The law also updates value added tax (VAT) provisions relating to fiscal representation, aligning them with revised definitions contained in Germany’s Tax Advisory Act.
Relief premium not included
The approved legislation does not include the previously discussed tax-free relief premium (Entlastungsprämie) of up to EUR 1,000, which had been considered during earlier stages of the legislative process.
Overall, the reforms represent a significant update to Germany’s tax advisory framework and related tax provisions, combining administrative modernisation with measures aimed at protecting the integrity of the tax system and reducing opportunities for tax-motivated restructuring.
Entry into force
Most provisions of the legislation will enter into force on 1 September 2026. However, the amendments relating to Real Estate Transfer Tax and FATCA reporting took effect on the day after the law’s publication, while the revised Trade Tax threshold will first apply for the 2027 collection period.
Earlier, the German Federal Council (Bundesrat) approved the Ninth Act Amending Provisions in Tax Consultancy Law and Tax Law on 11 June 2026.
