Field help: Were tax-free reorganisation gains obtained?
Were tax-free renovation gains earned?

Select "yes" if you have received tax-free reorganisation gains from a renovation project in accordance with sect. 3a of the Income Tax Act (EStG).

What is this about?

Reorganisation gains arise when a company is released from some or all of its debts in order to save it from insolvency. Under certain conditions, these gains are tax-free in accordance with sect. 3a of the Income Tax Act (EStG). This means that the proceeds from the debt relief are not subject to income tax if the primary aim is to reorganise the company and all conditions are met.

What does "tax-free restructuring proceeds" mean?

Tax-free reorganisation gains are profits that result from a creditor waiving a claim in order to avoid impending insolvency. In order for these gains to remain tax-free, the company must be in economic crisis and the reorganisation must be a priority. Tax exemption under sect. 3a of the Income Tax Act (EStG) can be applied if the tax office has confirmed the need for reorganisation and the company's ability to reorganise.

When should you provide information?

• If you have been partially or fully remitted debts as part of a corporate restructuring.
• If this debt relief served to avert insolvency and to stabilise the company economically again.

Where do you get the information from?

You will find the necessary information on the amount and type of the reorganisation gains in the reorganisation agreements or the confirmation from the tax office regarding the tax-free treatment according to sect. 3a of the Income Tax Act (EStG).