Glossary

Group Clause

The Konzernklausel (Group Clause), introduced in the Annual Tax Act 2024, extends tax deferral benefits under § 19a EStG to employee equity grants not only in the direct employer company but also in affiliated group entities (e.g., parent or sister companies). This change enhances flexibility in equity-based compensation, making Germany’s incentive framework more internationally competitive, provided the parent and subsidiary meet certain size thresholds.