Art. 298 Tax Act (StG) - Change in Temporal Measurement for Legal Entities

1. The simple profit tax for legal entities for the tax period ending in 1995 shall be calculated according to the assessment rules of both the old and the new law. If the tax calculated under the new law is higher, then it shall be decisive; otherwise, the tax calculated under the old law, excluding extraordinary income pursuant to paragraph 3, shall be applicable.

2. If a loss arises according to the assessment rules of both the old and the new law, the lower loss carryforward shall be decisive.

3. Extraordinary income, such as realized capital gains, book revaluations of assets, dissolution of provisions, failure to make commercially justified depreciation and provisions in the financial years ending in 1993 and 1994, shall be subject to a special tax assessed in accordance with Article 87 of this law, insofar as they are not used to cover offsettable losses.

4. To the extent that the financial year concluded in 1995 extends back into 1994, the profit and capital tax resulting for this period under the old law shall be credited against the profit and capital tax resulting for the same period under the new law; any surplus shall not be refunded.

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