# Overview of New Tax Proceedings Before BFH and BVerfG > An overview of new BFH and BVerfG proceedings concerning key issues of corporate and personal tax law. Source: https://www.mtrlegal.com/en/new-tax-proceedings-before-bfh-and-bverfg-overview/ · Language: en · Updated: 2026-10-29 --- In FG Münster (Münster Fiscal Court), judgment of 21 April 2026 – 13 K 317/25 K,G,F, the court ruled on the tax treatment of certain interest payments to outside shareholders. This case and other proceedings now pending before the Bundesfinanzhof (BFH, Federal Fiscal Court) or the Bundesverfassungsgericht (BVerfG, Federal Constitutional Court) are the subject of the overview published in October 2026. No decisions have yet been issued in the appellate proceedings listed below. ## Tax Issues for Businesses ### Interest on Compensation Under a Profit and Loss Transfer Agreement In proceedings I R 10/26, the court must determine whether interest on compensation pursuant to § 305 Abs. 3 Satz 3 AktG (German Stock Corporation Act) must be classified as compensation payments within the meaning of § 4 Abs. 5 Satz 1 Nr. 9 EStG (German Income Tax Act) and [§ 16 KStG (German Corporation Tax Act)](https://www.gesetze-im-internet.de/kstg_1977/__16.html). The case concerns interest accrued between the conclusion of a profit and loss transfer agreement and the exercise of the option by outside shareholders. The proceedings are based on the judgment of FG Münster dated 21 April 2026 – 13 K 317/25 K,G,F. The matter arose from two actions previously conducted under case numbers 13 K 317/25 K,F and 13 K 320/25 K,G,F. By order dated 21 March 2025, the court joined them for a joint hearing and decision. The claimants had already objected to the tax assessment made by the Large Business Audit Division during the tax audit. In particular, they rely on § 16 Satz 2 KStG. The matter is pending before the BFH under case number I R 10/26. ### Extended Trade Tax Deduction Where Operating Equipment Is Let Together With Real Property Proceedings III R 6/26 concern the extended deduction for real estate companies under § 9 Nr. 1 Satz 2 ff. GewStG (German Trade Tax Act). The BFH must determine whether this tax relief remains applicable where permanently installed facilities classified as operating equipment are provided together with real property. The specific case concerns a vehicle washing bay and a vehicle weighbridge. The court must decide whether letting them together with the property constitutes an ancillary business activity that precludes the extended deduction. The appeal on points of law is based on the judgment of FG Münster dated 12 March 2026 – 10 K 30/24 G; FG Münster lists the matter in its official overview of cases of particular interest. ### VAT Classification of Cleaning Work on Construction Sites Under case number V R 4/25, the BFH is considering the meaning of cleaning services in § 13b Abs. 2 Nr. 8 UStG (German Value Added Tax Act). The proceedings concern the following activities connected with work on buildings: - Detailed post-construction cleaning and rough construction cleaning are performed. - Areas are swept. - Waste is collected and subsequently removed. The court must determine whether this work falls within § 13b Abs. 2 Nr. 8 UStG. The court of first instance was FG Berlin-Brandenburg (Berlin-Brandenburg Fiscal Court), judgment of 15 January 2025 – 7 K 7159/22. ### Late-Payment Surcharges Following the Reversal of a Direct Debit Proceedings VII R 24/26 concern late-payment surcharges on tax liabilities that became due when the debtor was insolvent or insolvency was imminent. The central issue is the effect of objecting to tax amounts previously collected by direct debit and subsequently revoking the direct debit mandate. The BFH must decide whether amounts initially collected must be regarded as payments validly made pursuant to § 224 Abs. 2 Nr. 3 AO (German Fiscal Code), despite their subsequent reversal. This also raises the question of whether the tax claims are deemed to have been paid on the due date. The proceedings arise from the judgment of Sächsisches FG (Saxony Fiscal Court) dated 2 April 2025 – 1 K 1008/22. ### Tax Exemption for Payments for Care Services Proceedings VIII R 17/26 concern payments for caring for children and adolescents in a family-style residential group. The issue under review is whether these payments qualify as tax-exempt allowances under § 3 Nr. 11 EStG. The proceedings are based on the judgment of FG Münster dated 4 November 2025 – 14 K 2262/22 E. ### Determination of Income of an Asset-Managing Partnership Under case number VIII R 20/26, the proceedings concern the separate and uniform determination of income pursuant to § 180 Abs. 1 Satz 1 Nr. 2 Buchst. a AO. The BFH must determine whether such an assessment is also required where the income of an asset-managing partnership is attributable exclusively to a single partner. The underlying case concerns a loss on disposal within the meaning of § 17 EStG that also meets the requirements of § 20 Abs. 2 Satz 1 Nr. 1 EStG. The court of first instance was FG Düsseldorf (Düsseldorf Fiscal Court), judgment of 13 July 2026 – 14 K 1640/24 F. ### Records for a Home Office A constitutional complaint concerns the requirements for recording [expenses for the home office](https://www.mtrlegal.com/bfh-informiert-neue-aufzeichnungspflicht-fuer-arbeitszimmerkosten/) of a self-employed taxpayer. The proceedings are pending before the Bundesverfassungsgericht under case number 2 BvR 1327/26. The proceedings arise from the judgment of the BFH dated 24 March 2026 – VIII R 6/24. ## Proceedings of Relevance to Investors and Asset Owners ### Inheritance Tax Exemption for a Family Home Proceedings II R 26/26 concern the scope of the tax exemption under § 13 Abs. 1 Nr. 4b ErbStG (German Inheritance and Gift Tax Act). The court must decide whether the provision may be applied by analogy to a property that the deceased did not personally occupy up to the time of death. The court of first instance was FG Düsseldorf, judgment of 23 June 2026 – 4 K 1808/25 Erb. The BFH will therefore have to determine whether the family home provision is open to analogous application in these circumstances. ### Refund Claim of Separated Spouses Proceedings III R 9/26 concern spouses who were jointly assessed for income tax but now live separately. Following an amendment of the income tax assessment to zero euros, the allocation of the refund claim under § 37 Abs. 2 AO, including the solidarity surcharge and interest, is in dispute. The court must examine whether the refund is due in full to the spouse who demonstrably made, solely for their own account, the additional payments relevant to the amended assessment. By contrast, para. 3.7 of the letter issued by the Bundesfinanzministerium (Federal Ministry of Finance) on 14 January 2015 provides for all payments to be reviewed in their entirety and the refund amount to be allocated proportionately. In addition, earlier advance payments that had also been made on behalf of both spouses had already been refunded in full. The appeal on points of law is based on the judgment of FG München (Munich Fiscal Court) dated 16 April 2026 – 10 K 1745/24. ## Proceedings of Relevance to Employees ### Child Benefit After Expiry of the Statutory Cut-Off Period Proceedings III R 47/25 focus on the relationship between the treatment of child benefit for income tax purposes and the statutory cut-off period under § 70 Abs. 1 Satz 2 EStG. The BFH must decide whether child benefit attributed to the taxpayer under § 31 Satz 4 EStG reduces the income tax assessment even where the confirmation from the Familienkasse (Family Benefits Office) required under § 31 Satz 5 EStG is unavailable for the period concerned. In this case, the absence of confirmation is due to the expiry of the statutory cut-off period. The court of first instance was FG Düsseldorf, judgment of 12 November 2025 – 13 K 2122/24 E. ### External Office Jointly Rented by Spouses Proceedings VI R 13/26 concern expenses for an office located outside the home. The premises in question were rented jointly by spouses but used for professional purposes exclusively by one spouse. The court must determine whether, under this arrangement, a distinction must be made between property-related and use-related expenses. The proceedings are based on the judgment of Niedersächsisches FG (Lower Saxony Fiscal Court) dated 19 August 2026 – 3 K 54/26. ## Significance of the Pending Decisions The pending proceedings concern various areas of income tax, value added tax, trade tax and inheritance tax law. Only the outstanding decisions will show how the respective provisions are to be interpreted in the circumstances described. The mere fact that proceedings are pending permits no conclusions to be drawn regarding either their outcome or the general tax treatment of comparable circumstances. Businesses, investors and high-net-worth individuals with questions concerning the issues discussed may obtain case-specific [legal advice on tax law](https://www.mtrlegal.com/rechtsberatung/steuerrecht/) from MTR Legal.