Inside the balance sheet | Outside the balance sheet
recording of costs as operating expenses or operating income (the latter for example in the case of tax refunds), §§ 4 (4) and 8 (1) sentence 1 EStG
Deduction of any VAT to be claimed pursuant to § 15 UStG | No effects
No effects | Full or partial attribution of the deducted expenses, insofar as there are non-deductible operating expenses Attribution of VAT according to § 10 no. 2 KStG
No effects | Full or partial accounting of revenues, insofar as they have had an effect on increasing profits, but should remain profit-neutral (correspondence principle, for example in § 10 no. 2 KStG)
The income tax regulations for determining the income of a corporation apply accordingly via § 8 (1) KStG. In practice, this means that under § 4(5) EStG non-deductible operating expenses are also subject to a deduction ban in the corporate tax. In addition, there are §§ 9 and 10 KStG, which contain as leges specialis further special regulations for corporations.
Non-deductible operating expenses under the Corporate Tax Act play an important role in theory and practice. In the first step, there are costs caused by the operation – and thus operating expenses according to § 4 (4) EStG – but in the second step, proportional or complete deduction prohibitions apply. The following regulations are particularly relevant here:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.