Corporate income tax (KSt) is in fact the “Income tax for corporations”. However, in order for the German Treasury to be able to collect it at all, the respective corporation must either be subject to limited or unlimited corporate tax liability. We take a closer look at the latter in this article and take a look at the Corporate Tax Act (KStG).
By the way: Since mid-June 2021 partnerships can opt for corporate tax liability (§ 1a KStG). Take a look at our article on the subject!
Similar to the Income Tax Act (EStG), the legislature regulates the unlimited corporate tax liability directly in § 1 KStG – so you do not have to scroll far. The tax liability applies to all corporations that their
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.