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Section 19a deferral (Germany)

Also called: ยง19a EStG, German tax deferral

In one line

A German rule that can defer the tax on employee shares until a later event, easing the 'dry income' problem.

In plain English

Germany's ยง19a lets qualifying employees postpone the tax normally due when shares are granted, until they're sold, the employee leaves, or a time limit passes โ€” so tax arrives closer to when cash does.

If you were explaining it to a 5-year-old

A German rule that says: 'don't pay tax on the toy now โ€” wait until you actually sell it.'

Why it matters when you sell

If your German equity qualifies, deferral changes when tax is due, affecting whether and when you need to sell to pay it.

Related terms

Put it to use

How to get liquidity (Europe)

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Sources

Primary references for this term: Gesetze im Internet (Germany). Our definitions are written in plain English and kept evergreen โ€” see the glossary methodology. General information, not advice.

Educational information only โ€” not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.