On 7 December 2005, the first chamber of parliament passed the Tax Amendment Act 2005 (Abgabenänderungsgesetz 2005). The Act was passed by the second chamber of parliament on 21 December 2005. It contains changes in the field of individual income tax and corporate income tax, which are summarized below. Unless otherwise indicated, the changes have effect from fiscal year 2006. The most important changes in the field of reorganization tax will be separately reported. Corporate income tax (a) Changes regarding international participation privilege. If the relocation of a corporate seat to a foreign country results in an international participation privilege,...