A hidden distribution of profits regularly leads to undesirable consequences for the GmbH and affected shareholders. However, the legal consequences are sometimes more or less serious, which depends above all on the type and legal form of the participating shareholder. In addition, various special cases must be considered, such as the “triangle vGA” for several corporations.
1. requirements for the existence of a hidden distribution of profits (vGA)
According to R 8.5 paragraph 1 sentence 1 KStR, there is a hidden distribution of profits, in short vGA, under the following conditions:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.