1. special features in the GmbH taxation
If the annual profit is distributed to the shareholders, capital gains tax of 25% plus solidarity surcharge is added. Finally, the GmbH shareholder thus net approximately 50% of the GmbH’s profit.
For corporations, contractual relationships with the shareholder, managing director and family members are generally recognised for tax purposes. This creates operating expenses at the GmbH. Therefore, as a managing director, you should pay yourself a salary, as this is taxed on a private level only with your personal income tax rate (0-45%). Similarly, this tax rate, which tends to be lower, can be used for rents paid by the corporation to its shareholder. However, this often results in a harmful division of operations, which can only be avoided by good tax advice.
Current design: New jurisdiction for interest on loans
Due to a case law of the Bundesfinanzhof, it has been permissible since 2014 for family members of the shareholder to provide loans to the GmbH and to tax the interest income only at the particularly low tax rate of 25%. At the same time, the GmbH can deduct the interest with a total tax rate of approximately 50%.
Individual design model of the law firm Kanzlei Meyers & Partner AG
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.