In some situations, tax law requires a company value or per-share value to serve as the assessment basis for levying taxes. For example, this applies in the following cases:
- Inheritance of a business or shares in a business
- Gifts of a business or shares in a business
- Relocation of business divisions abroad from businesses based in Germany
- Transfer of domicile abroad on the part of the business owner
- Contribution, merger or division of businesses
- Reorganisation of businesses taking tax loss carry-forwards into account
In these cases, company valuation is not determined based on the normal valuation standards but rather is case-specific subject to specific tax requirements. For example, the rules set out in the German Valuation Act (Bewertungsgesetz) apply to gifts and inheritance matters. The provisions of the Foreign Tax Act (Außensteuergesetz) or the directive governing the transfer of functions (Funktionsverlagerungsverordnung), as applicable, apply in situations where business divisions are relocated abroad.