L 212/50 Official Journal of the European Communities 30.7.98 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 21 January 1998 on tax concessions under § 52(8) of the German Income Tax Act (notified under document number C(1998) 231) (Only the German text is authentic) (Text with EEA relevance) (98/476/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Atrticle 93(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having given the other Member States and interested parties notice to submit their comments, in accordance with Article 93(2) of the EC Treaty, Whereas: By Decision of 26 February 1997 the Commission initiated proceedings pursuant to Article 93(2) in respect of a provision in the German Annual Tax Act 1996 (Jahressteuergesetz 1996) (') which amended § 52(8) of the Income Tax Act (Einkommensteuergesetz) so as to modify a scheme laid down in § 6éb of the latter Act. The (") BGBL 1995 I 1250; entered into force 1 January 1996. Commission informed Germany of its Decision by letter dated 25 March 1997 (%), and published the letter in the Official Journal of the European Communities on 6 June 1997 (%). Germany submitted its comments by letter of 13 May 1997. No observations were received from other Member States or interested parties. The provision at issue introduces a special tax concession for the years 1996, 1997 and 1998 which is intended to strengthen the market in holdings in companies in the new German Ldnder and West Berlin, and thus to increase their equity capital. The concession can be summarised as follows. Under German tax law, gains accruing from the sale of certain assets to natural persons resident in Germany (§ 1 of the Income Tax Act) or legal persons resident in Germany (§ 1 of the Corporation Tax Act (Kérperschafts- steuergesetz)) are subject to income tax; the Corporation Tax Act (§ 8) states that legal persons are to be treated in accordance with the relevant provisions in the Income Tax Act. § 6b of the Income Tax Act allows natural and legal persons who sell certain movable and immovable assets or shares in companies (Kapitalgesellschaften) to offset up to 50 % of the taxable gain on the sale, and in some cases up to 100 %, against the cost of acquiring or producing certain assets in the year of sale or the following four () SG(97) D/2381. () OJ C 172, 6. 6. 1997, p. 2.