Corporations (GmbH, AG, UG) pay per se about 32 percent corporate taxes (corporate tax and business tax) plus 25 percent withholding tax and thus come to a total burden of about 50 percent.
Thus, the total tax burden of GmbH & Co. KG tends to be lower than that of the GmbH.
Since the 2008 corporate tax reform, partnerships can also tax their profits in the company at a particularly low tax rate. This amounts to 28.25 percent plus trade tax and is only granted at the special request of the taxpayer or his tax consultant. Please click here for the legal text.
3rd tax exemption of GmbH & Co. KG for inheritance tax and gift tax
Companies can transfer you in principle estate tax free and gift tax free. However, while the decedent or donor must hold more than 25 percent of the shares in corporations (GmbH, AG, UG), you can also make use of the tax exemptions for the inheritance and gift of partnerships (GmbH & Co. KG, oHG, GbR and KG) for smaller shares (< 25 percent).
4th Tax Reduction on Real Estate Transfer Tax
In addition, the legislature provides for tax advantages in real estate, land and real estate for the partnership presented here.
5. Business tax exemption for real estate assets through commercial design
Unlike corporations, GmbH & Co. KG can be exempted from trade tax in the case of real estate rental by a commercial depreciation. In addition, this tax trick ensures that the properties can be sold tax-free after 10 years – as in private assets.
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.