Auditors ✓ Lawyers ✓ Tax advisors ✓ and business consultants ✓ : Four perspectives. One solution. Worldwide. Learn …
Auditing and audit-related advice for companies ✓ Experienced auditors ✓ Excellent advice ✓ Tailor-made solutions » …
Our clients entrust us with their most important legal matters. Learn more about our legal services!
Tax laws are complex and dynamic. We face the challenge of tax law together with you - find out more.
Business consulting for companies ✓ Experienced consultants ✓ Excellent advice ✓ Tailor-made solutions » more
In-house or outsourcing? Strategic decisions in accounting
Avoid shareholder conflicts: Structure instead of ambiguity
How far can the rights of a criminal defense insurer extend?
EU “Omnibus” Package: Less effort for sustainability reporting?
Baker Tilly starts the year 2025 with 23 new Directors
Challenges in corporate finance: Baker Tilly at Structured FINANCE 2024
Pay slips are purely information documents
Financing and funding: realignment in the coalition agreement
Accounting in corporate groups: Standardized structures instead of isolated solutions
Survey: Two thirds of German automotive suppliers anticipate a market shakeout
Public procurement: Legally compliant procurement of cyber insurance
Countdown to September – The EU Data Act and its implications
Cross-industry expertise for individual solutions ✓ Our interdisciplinary teams combine expertise & market …
Baker Tilly advises biotech startup Real Collagen GmbH investment by US investor
Energy study: Uncertainty slows down investments by industry and utilities in Germany
Risk management ✓ Compliance and controls ✓ Increase and ensure security & conformity ✓ more»
Baker Tilly offers a wide range of individual and innovative consulting services. Find out more!
Employee participation in the company can be a powerful succession planning tool. However, there are tax pitfalls lurking: Is it a salary - or a gift?
In a recent ruling by the Federal Fiscal Court (BFH) from November 20, 2024 (VI R 21/22), the judges clarify: Not every transfer of shares is automatically taxable wages.
An entrepreneur transferred shares to his son and to managers of his company - with the aim of ensuring succession and the long-term preservation of the company. The tax office assumed the transfer was a salary and wanted to levy wage tax. However, both the tax court and the Federal Fiscal Court disagreed.
The BFH clarified that the transfer of company shares does not automatically qualify as wages. Rather, clear criteria that distinguish a genuine succession arrangement from concealed remuneration are decisive. In its decision, the BFH stated that no wage tax is payable if the following conditions are met:
A well thought-out and clear regulation is crucial for a company participation to have the desired effect. It should not only be legally secure, but also reflect the long-term interests of the company and the parties involved. A well-planned structure creates trust, ensures commitment and supports a successful succession plan.
Entrepreneurs who want to retain managers through company participation or organize the succession should
Employee participation can be a valuable succession planning tool - if it is set up correctly. If it is designed and documented at an early stage, you can avoid tax risks and benefit from favorable regulations. Are you planning a succession solution involving your managers? Contact us - we will support you from the tax concept to implementation.
Are you planning a succession solution involving your managers? Contact us - we will support you from the tax concept to implementation.
Julia Wenninger
Manager
Certified Tax Advisor
Contact now
Contact us
View all news