No later than upon the first submission of the income tax return of the respective Founder for the calendar year in which the share-for-share exchange was completed.
Exercise tax election right pursuant to Sec 21 (2) sentence 3 RTA
File explicit application for book value share-for-share exchange pursuant to Sec 21 (2) sentence 3 RTA with German tax authorities no later than upon the submission to German tax authorities of the income tax return of the respective Founder for the calendar year in which the contribution was completed
Note: This step has been introduced as a safety mechanism to mitigate concerns raised by Noerr according to which there may be a risk for the German Founders if HoldCo was viewed as having its effective place of management outside of Germany.
Tax counsels of Founders