GAGFAH GROUP welcomes the Federal Parliament's Passing of the New Tax Law 2008
11/9/2007
- EK 02 solution eliminates tax disadvantages
- GAGFAH S.A. considers relocating from Luxemburg to Germany
The GAGFAH GROUP welcomes the Federal Parliament's passing of the new tax law 2008. "The resolution on the lump sum taxation will have a positive impact on the entire housing industry and on the German economy in general," says Burkhard Ulrich Drescher, CEO of the GAGFAH GROUP. "This new regulation eliminates the disadvantages in terms of dividend payouts. The solution for the EK 02 problem and additional changes to the corporate tax law are reason for us to seriously consider locating our corporate seat from Luxemburg to Germany."
The new tax law 2008, among other things, eliminates the problems in connection with § 38 of the corporate income tax act (generally referred to as the "EK 02 problem") by introducing a 3% lump sum taxation. Burkhard Drescher explains, "the new 3% lump sum taxation is a correction of a mistake in the old tax law system. The Federal Parliament was right to pass this new law. After all, the EK 02 problem is currently subject of a pending case before the European Court of Justice. I hope that the Federal Council will now approve the new tax law 2008 in its current form, paving the road for modernizing the taxation of the housing industry."
About GAGFAH S.A. and the GAGFAH GROUP
GAGFAH S.A. is a joint stock corporation organized under the laws of the Grand Duchy of Luxembourg qualifying as a securitization company under the Luxembourg Law of March 22, 2004 on Securitization. The most important operating subsidiaries of GAGFAH S.A. are GAGFAH GmbH, NILEG, and WOBA DRESDEN. The core business of GAGFAH S.A.'s operating subsidiaries is the ownership, management and acquisition of a geographically diversified and well maintained residential property portfolio located throughout Germany. With approximately 180,000 own residential units and another 25,000 residential units under management GAGFAH is the largest German listed residential property company. GAGFAH generates 95 of its earnings from letting residential spaces and is committed towards continuously improving its services. GAGFAH is taking on social responsibility, particularly through special protection clauses in favor of its tenants and through its foundation Mensch und Wohnen (People and Living).