The Bundesverband mittelständische Wirtschaft (BVMW) and the Steuerzahlerbund have sent an urgent letter to Federal Finance Minister Lars Klingbeil. They complain about unfair valuations of non-listed companies that hinder successions. This exacerbates the Mittelstand's issues alongside inheritance tax.
Many entrepreneurs wish to hand over their life's work in retirement, but the number of business successions is stagnating, as shown by a study from the Institut für Mittelstandsforschung Bonn. Potential successors shy away due to high costs, with inheritance tax often cited as the reason. Less attention is paid to the tax valuation of non-listed companies, which the BVMW and the Steuerzahlerbund criticize as unfair.
In their letter to Klingbeil (SPD), exclusively available to the RedaktionsNetzwerk Deutschland (RND), the associations warn against the simplified earnings value method used by tax authorities. This calculates value based on average earnings and future profits but ignores individual risks such as dependence on few customers or fluctuating raw material prices. Thus, healthy companies appear unattractive.
"The blanket practice is an XXL risk: It ignores reality and puts even more pressure on the Mittelstand, which is already suffering from high energy prices, skilled labor shortages, investment stagnation, and excessive bureaucracy," said Reiner Holznagel, President of the Bundes der Steuerzahler, to the RND. "Overvalued tax assessments exacerbate the tense situation – they endanger business successions and jobs."
The criticism intensifies amid debates on inheritance tax reform, which is creating uncertainties. BVMW Federal Managing Director Christoph Ahlhaus demanded "finally fairness and transparency in inheritance tax, no fiscal moon valuations that turn every french fries stand into a 3-star restaurant."
The letter proposes solutions, including a short-term review of valuation practices and clear guidelines for realistic business valuations.
