Rainer Kirchdörfer, the head of the Family Businesses Foundation, has issued a strong warning that the German business landscape could face a catastrophe if the exemptions rules for heir companies under inheritance tax were abolished. Speaking to the “Rheinische Post”, Kirchdörfer stressed that these rules-which protect assets like factories, machinery, and patents-are vital for the long-term survival of family-owned enterprises across generations.
The board of the foundation, which represents many large German family companies, warned that the removal of these exemptions would constitute a crisis for Germany’s economic standing. They urged that further deterioration of the country’s competitive business conditions must be prevented under all circumstances.
Kirchdörfer pointed out that global competitors envy Germany’s large diversity of small, medium, and large family businesses. He cautioned that if inheritance taxes on business assets were raised, family companies would have fewer funds available for investments, ultimately leading to job losses. He concluded that preserving the inheritance tax exemptions for business assets is absolutely essential.
Meanwhile, the Federal Constitutional Court is scheduled to hold oral hearings on Monday and Tuesday regarding constitutional challenges to the current inheritance tax regulations.
