At present, many sons and daughters of company owners hesitate to take over their family businesses due to uncertain tax consequences. The currently applicable exemption rule, tightened in 2016, which protects productively tied business assets under certain conditions during generational transfers, has been called into question again following a constitutional complaint. 

Oral Hearing on 13 October 2026

The complaint of a private individual, who feels disadvantaged in inheritance taxation compared to company heirs, was heard on 13 October 2026 at the German Federal Constitutional Court. The evaluation of corporate assets and the constitutional assessment of the tax treatment were central to the hearing.

The German Chamber of Commerce and Industry (DIHK) was invited to the oral hearing as an expert third party. Rainer Kambeck, Head of the DIHK Division Economic and Fiscal Policy, SME, Christian Lebrecht, DIHK Department Head Employee Taxation, Travel Expenses, Inheritance and Gift Tax, and Ralf Herbener, Chairman of the DIHK Finance and Tax Committee, were present and directly contributed the arguments of the IHK organisation to the proceedings. 

During the hearing, the DIHK emphasized the reasonable grounds for granting special treatment to company assets. These assets are often tied to the company for extended periods and not readily available for tax payments. Additional burdens could jeopardize the liquidity and investment capacity of the business. Furthermore, companies must comply with requirements for business continuation, retention periods, and job security measures in return for tax exemptions. The DIHK, therefore, considers the existing regulations to represent a balanced compromise between the state's tax interests and the goal of preserving companies, jobs, and investments in Germany.

The Key Concerns of the Business Community

• Combine valuation and exemption: Business assets should first be assessed realistically. Subsequent exemptions should reflect the fact that productively tied company assets are not readily available as liquid funds.
• Enable business continuation: Conditions for exemption should focus on retaining the business and employment. Requirements like payroll thresholds and retention periods should not disproportionately hinder necessary restructuring during crises.
• Make rules clearer and more predictable: Regarding administrative assets, debts, young financial resources, and the investment clause, the DIHK advocates for understandable and practical regulations.
• Use deferral only as a supplement: Later payments may ease financial strains but are no substitute for targeted exemptions, according to the DIHK. Even with a deferral, businesses or inheritors must fund the tax from future earnings or other sources.
• Improve data basis: The DIHK proposes linking tax and business data anonymously and in compliance with data protection laws for research purposes. This would allow better analysis of potential links with liquidity, investments, employment, and business continuity. In cases where a sale is needed to finance taxes, a targeted relief from income tax should also be considered.

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The position of the IHK organisation has been explained in a unanimously approved position paper from March 2026 (only available in German) (PDF, 462 KB) and further formats. On the occasion of the hearing, the DIHK also formulated a statement for the German Federal Constitutional Court: