Knowledge
Selected legal, tax and administrative updates from the specialist archive.
With Quality First GmbH, Felix Schulz has built up a company with a valuation of more than one billion euros – founded in 2017 and sold part of his shares in May 2022. He openly talks about...
How quickly can a sole proprietorship be converted into a double holding structure? How much time does it take, what does it cost and what preparations are required? These questions mainly reach us to ...
At the same time, Federal Finance Minister Lars Klingbeil announced at the end of April 2026 that he would abolish the self-disclosure under Section 371 AO for larger amounts of evasion – the “golden bridge to tax honesty”.
The fact that influencers from Dubai are coming back to Germany and the Treasury is expecting them “desirefully” at the airport is a pretty picture – and the only merit of today’s show, which has recently satirically prepared the topic ...
Federal Finance Minister Lars Klingbeil announced it on 29. April 2026 at the Federal Press Conference itself said: Cryptocurrencies should be taxed “differently” in the future. The one-year holding period according to § 23 EStG is before ...
The German passport is considered one of the strongest passports in the world – and yet more and more wealthy individuals and entrepreneurs are opting for a second citizenship. The question of how to get a second passport as ...
Which taxes are relevant when returning from abroad to Germany, we consider in the following article. The technical answer is basically very simple. After returning to Germany, the...
The private acquisition of GmbH shares takes place under unfavorable conditions. After all, you have to spend net over-taxed income for this. But you can correct this tax by transferring the GmbH shares to a holding company.
Many advantages are possible with a holding company. In this post, we list the 11 most important of you and introduce them to you individually. They arise both in the tax context and in tax-optimized ...
We have often reported on the advantages of a holding company. But with a foundation, even more advantages are possible. In particular, a foundation holding company that is involved in operating companies grants many ...
With a conversion from a sole proprietorship to a GmbH, several advantages can be achieved. On the one hand, this can shift the liability from the private level to the company assets and thus significantly restrict ...
Exit tax is usually known in the context of corporations. But basically the exit tax on private assets is much more relevant and diverse. In fact, the main issue is ...
Leveraging real estate is a term that should illustrate how to build and expand real estate assets as efficiently and quickly as possible. To illustrate such a process, in this article we present a model ...
Exit taxation is a term used in tax law to refer to the taxation of hidden reserves when individuals move abroad. Examples of exit taxation are the exit tax on shareholdings ...
The SPD and Bündnis 90/Die Grünen have expressed their interest in moving away from the previous regulation on the tax-free sale of privately held properties after a ten-year speculative period. At least ...
A luxury car is associated with prosperity, freedom, lifestyle, but rarely tax advantages. In this article, we demonstrate how to rent a luxury car and thus generate tax advantages ...
For entrepreneurs, moving abroad always comes with obstacles. But a move can also generate tax advantages. We present a design with a family foundation in which the departure ...
For wealthy parents, it is often a challenge to optimize their wealth succession, including taxation. Some of them wonder if it can make sense to have a child at the birth of ...
For many wealthy people in Germany, it is a long-term goal to transfer real estate assets as tax-free as possible. You can use a whole range of designs. Among other things, you can try the ...
Real estate offers a whole range of ways to design taxes. The focus is often on depreciation. An even more significant factor is the potential tax-free sale out of private assets. Wishes ...
Heinz Herrmann Thiele worked his way up in one of the world’s most important industrial companies for commercial vehicle technology and took over this in practice. Under his leadership, Knorr-Bremse AG developed into a ...
In order to realize tax-free profit distributions, two different tax designs have to be combined. On the one hand, the profit distribution is carried out by part income method. So already 40% of the profit distribution remains ...
Property can be purchased and rented and sold in different ways. The type of acquisition plays a decisive tax role. For us it is an opportunity to show where these differences ...
Those who want to emigrate to Switzerland without having to pay exit tax can use various options. One of them is particularly attractive if you live in Switzerland for only a few years anyway and then return to ...
The partial income procedure can generate tax advantages in the case of a profit distribution from a GmbH. After all, in the partial income procedure, 40% of the profit distributed remains tax-free. However, one applies to the ...
Influencers are omnipresent in our media-driven world. An essential feature of influencers is that they act as advertisers for a wide variety of products. Of course they deserve it...
For GmbH shareholders who have the desire to move abroad, the exit tax is a considerable obstacle. After all, this taxation boils down to taxes on a purely fictitious ...
In the business sale, the valuation of the company to be sold is of considerable importance. Three evaluation methods are recognized here, but sometimes lead to very different results. That ...
Rentals via Airbnb and profits from cryptocurrency transactions have one thing in common: they have often been accompanied by tax evasion in the past. Especially if the income from abroad, especially ...
A set of rules of procedure governs the respective responsibilities in companies that have several managing directors. This is primarily relevant in the internal relationship and towards the shareholders and thus pronounced ...
Normally, one tries to convert individual companies tax-neutrally into a GmbH or to transfer them directly into a holding structure – ideally using the option to retroactively affect the beginning of the year. In this article ...
Do you still want to convert your individual company into a GmbH in 2025? Then you have until 17.07.2025 to contact us. Because we have aligned and optimized our processes precisely to ensure that the ...
Certain groups of people can be disinherited, but they can at least enforce a compulsory share right as soon as the inheritance occurs. Nevertheless, there are possibilities with which one can claim a compulsory part of ...
In some situations, a holding company can only use partnerships as operational subsidiaries. However, this prevents the building of an organ stock that is usually used to ...
Fix and flip are real estate deals that involve the development of land, the value of which is increased. Either you acquire a detached property, or one where an already ...
When comparing a UG (limited liability) with a GmbH, we notice some important differences. Although there is no difference in terms of taxation, it does exist in terms of start-up costs and other legal ...
A division of operations is a serious risk for GmbH shareholders. But often you only discover a business split when you trigger a taxable transaction by sale or transfer. It can be ...
According to § 3c EStG, the so-called partial deduction ban applies to certain operating expenses and advertising costs. It always applies when expenditure with tax-free income or future tax-free income in an indirect or ...
German trade tax law knows the so-called extended reduction. In § 9 no. 1 sentence 2 the following GewStG is regulated that companies that exclusively manage (let) their own real estate do not ...
The registered company civil law (short eGbR) is a new variant of the GbR. It expands the legal possibilities of a GbR. Because an eGbR now about legal advantages in its business ...
Taxation of the transfer of business assets is a central issue in German tax law. Especially for entrepreneurs who want to sell or transfer business assets, it is of great importance that ...
If property changes due to death, i.e. in the context of the inheritance, the owner, this usually incurs inheritance tax. However, numerous exceptions and allowances must be observed, which ...
Who gives away assets, pays gift tax – and who inherits, must pay inheritance tax. Schenker and giftees can avoid the gift tax, however, if they already think in advance about the optimal ...
At present, the determination of transfer prices in international groups is to be carried out on the basis of the functions, risks and assets taken over. Therefore, first of all, ...
Many GmbH shareholders purchase a company car through their GmbH, which is sometimes also available for private trips. The income tax law takes these private trips into account as monetary benefits that ...
Often it comes between close relatives to a loan grant with an unusual interest rate. For this purpose, the Bundesfinanzhof (BFH) subsumed with judgment of 31.07.2024 the granting of a non-market interest rate ...
The change of profit method can be made for both business and tax reasons. Often, this step becomes necessary when companies set certain revenue or profit thresholds.
Nowadays, it has become customary to operate internationally. An exclusive activity in Germany is for larger companies in times of globalization and foreign trade with member states of the ...
Buying a company is a complex process in which various tax issues play a significant role. Especially the taxation of goodwill, i.e. the intangible company value, which is not ...
The sale of a company is a significant step for many entrepreneurs, which has not only business but also tax consequences. When selling a company, the taxation of goodwill ...
If a company files for insolvency and the competent district court opens the (provisional) insolvency proceedings, this is linked to the appointment of an insolvency administrator. The insolvency administrator has the task of ...
Differential taxation is a special scheme for the taxation of supplies of movable property. In short, the entrepreneur only submits the difference between the selling price and ...
The tax code (AO) fabricates a notification of an administrative act after a certain time has elapsed. The most famous fiction here is the 3-day fiction. According to this, a tax ruling was valid after 3 days after ...
In the design of tax-optimized asset successions, usufruct plays a particularly prominent role as a design means. In our design model presented here, we want to show an example of how the ...
The establishment of a company is always associated with financial challenges. Especially at the beginning, losses are not uncommon, as the income is often not enough to cover the expenses. However, it is ...
The decision to move abroad can be influenced by a variety of factors that include both personal and professional aspects, such as lower cost of living or a job.
Certain conversion operations are exempt from real estate transfer tax under the group clause (§ 6a GrEStG). In this way, real estate transfers within a group of companies are tax-free if certain ...
Business tax law also knows the principle of loss carry-forward. Losses from previous collection periods reduce income in the following years, provided certain conditions are met. In addition, sees ...
Closing a lease agreement with your own GmbH sounds attractive at first glance. Because the property in private assets remains private assets and can be sold tax-free after 10 years. At the same time ...
A company purchase often involves many risks. For example, the company value can fall drastically after the acquisition. However, one can ensure with a design that the company purchase still has a benefit despite losses ...
A recovery clause for gifts is like a guarantee promise when buying goods: If the result of the gift conflicts with the previous expectations, the gift can also be reversed ...
Every international group must ensure that its group companies have a wide variety of services available. These services can be administrative, technical or commercial ...
Earn-out payments in the context of corporate transactions are a frequently chosen arrangement to facilitate the conclusion of contracts between buyer and seller. Through earn-out clauses agreed in the purchase contract, the ...
In its judgment (IV R 9/21) of 9 November 2023, the BFH dealt with the taxation of so-called earn-out payments. In doing so, it endorsed previous case-law. The payment of profit-...
The § 19 UStG, known as the Small Business Regulation, exempts companies with low turnover from VAT liability. Thus, from 01.01.2025, important changes to the paragraph will come into force to small businesses.
A double foundation is a design construct consisting of a charitable foundation and a family foundation. Both foundations are involved in a holding company. However, their participation is regulated differently than ...
When a partnership is dissolved, the assets are generally divided among the shareholders. It can happen that an overhang arises in favor of one or more partners who ...
Due to the question to be answered in the future on the solution of the climate crisis, the question arises to what extent the legislator has incentives to promote the self-imposed goal of reducing greenhouse gases to minus 65 by 2030.
On 10 November and 16 December 2022 respectively, the Bundestag and the Bundesrat adopted the DAC7 Implementation Act. However, the changes affecting in particular the external inspection (operational inspection) have not been completed until 01.01.2023 or ...
In the case of a current account, there is a settlement agreement between two business partners. Accordingly, mutual claims and liabilities are bundled in a current billing account and settled regularly. This ...
German corporate tax law basically follows the tax subject principle. Accordingly, each company is taxed individually – i.e. without regard to a group group. There is no automatic...
Debt interest is tax deductible if there is a connection with a certain type of income. A classic here are loans for financing rented real estate, because here are the accruing interest as ...
Whoever wishes to make use of the tax exemption for business assets pursuant to §§ 13a and 13b ErbStG usually receives this exemption only for those assets which do not constitute so-called administrative assets. Within the framework of ...
The exit tax is a hindrance for many GmbH shareholders if they want to emigrate abroad. But since 2025 there is also an exit tax, which affects all those taxpayers in this country, who with their already ...
In particular, in the Marks & Spencer case, the ECJ concluded that Member States had the possibility to restrict European fundamental freedoms by means of abuse prevention schemes. There, the ECJ developed the ...
The acquisition of ownership of a property is also possible if the seller is not the owner of the property. The requirements are basically regulated in §§ 932 ff. For the acquisition from the merchant apply ...
In Germany, securities are subject to their own taxation. This is regulated in §§ 20 and 32d EStG. The income tax law here names the individual capital income and determines when the separate tax rate of ...
The half-division principle was formulated in 1995 by a judge of the Federal Constitutional Court (BVerfG) as a comment on a judgment on the constitutionality of property tax. For about ten years, the ...
The tax exemption for business assets of §§ 13a to 13c ErbStG enables an inheritance tax-free and gift tax-free transfer of individual companies, co-entrepreneur shares and shares in corporations. From ...
The tax exemption for business assets applies according to § 13b (1) ErbStG to all commercial, agricultural and forestry as well as professional enterprises. However, insofar as so-called financial resources ...
Goodwill, as intangible assets, is in principle not depreciable. Exceptions apply, however, if the entrepreneur either acquired the goodwill or created it in private assets and ...
German companies can set up a business in Dubai to partially shift their tax burden to the Arab Emirates. However, various provisions of international tax law must be observed ...
Anyone who wants to optimize individual companies or partnerships for tax purposes quickly thinks of a holding structure. Because it combines several advantages in the one-time and ongoing taxation, causes comparative ...
In principle, the transfer of land requires a purchase contract between two parties. However, a so-called change of legal entity can also occur for other legal reasons, such as a conversion after ...
The division of operations is to a certain extent regarded as a spectre of every GmbH shareholder, unless it is intentionally brought about – as is sensible in some cases. The division of operations ...
With § 8c KStG, the legislature replaced the existing “coat purchase regulation” in § 8(4) KStG in 2008. The aim of the regulation is to avoid abuse by eliminating certain loss carry-forwards if more than 50% ...
In the Marks & Spencer case, the ECJ first developed the concept of final loss. British tax law stipulated that losses incurred by foreign subsidiaries at a domestic parent company would ...
The Inheritance and Gift Tax Act (ErbStG) has its own tax exemption for business assets. In the case of her, however, between the rule exemption (exemption of 85%) and the option exemption (exemption of 100% ...
The separation triggers real estate transfer tax as a form of division (§ 1 UmwG) if a property is transferred to another legal entity within its framework. However, the parties involved can avoid this if the conditions ...
In the case of the exemption for business assets in inheritance tax and gift tax, a distinction must be made between the standard exemption on the one hand and the option exemption on the other. The standard case is ...
It may happen that contracting states of a double taxation agreement interpret it differently. Then they attach a different importance to the rules of the double taxation agreement. In such a case ...
Our readers certainly know the exit tax all too well, because it is a long-term burner in our blog posts. Therefore, you probably already know that the exit tax usually applies if you ...
The term “mandatory contract” is of importance in tax law, especially in the acquisition of assets. Because according to him depends, among other things, when the ownership of the respective object on the ...
The new additional taxation reduces the taxation requirements from which this regulation leads to a tax in Germany. As a result, it is now possible to set up intermediaries in countries where taxation ...
In one of our contributions, we announced that the European Court of Justice (ECJ) will soon decide on the VAT group. The sales tax organization is regulated in § 2 paragraph 2 no. 2 UStG. Legal consequence ...
Human physicians, i.e. doctors and dentists, as well as pharmacists are subject to strict rules by their professional law when choosing the legal form of their company. This also means that they are not allowed to set up a corporation ...
Conversion operations generally trigger the real estate transfer tax if, in the context of conversion, a property is transferred to another legal entity (for example from a partnership to a limited company). With the so-called ...
The benefits for business assets under §§ 13a and 13b ErbStG play an important role in inheritance tax law and gift tax. In the context of the examination of the beneficiary's assets, it is ...
Certain incomes are primarily assigned to other types of income, insofar as they belong to these. The principle of this so-called subsidiarity applies generally in German income tax law, but also knows certain limits.
Hidden distributions of profits (vGA) pose a high risk for shareholders of corporations. If the tax office establishes a vGA, it charges the declared operating expenses to the ...
A reserve under § 6b EStG enables the initially tax-free realisation of operational capital gains. A prerequisite, however, is that the entrepreneur the § 6b reserve in a timely manner on a newly acquired or ...
Who rents real estate, must distinguish between acquisition, production and immediately deductible costs. Tax law allocates the respective expenses according to certain criteria to one of these categories ...
In civil law, a distinction is made between the commitment transaction on the one hand and the disposable transaction on the other. This distinction is particularly important in the case of the acquisition or sale of ...
The so-called sham business is insignificant for taxation. This means that the tax office does not have to draw or observe the legal consequences from corresponding transactions. But what exactly is a sham business and ...
Private divestment transactions within the meaning of § 23 EStG are mainly known from the sale of real estate and the so-called 10-year period. However, the standard also contains other facts, including the sale ...
Setting up companies abroad can offer tax advantages. However, this only applies if this is designed accordingly. Because if you simply from Germany a sole proprietorship, a partnership ...
An operating split exists when there are material and human connections between an operating and a holding company. So a person or group of people must master both companies and here ...
In the case of cross-border trade in goods, certain VAT rules are sometimes economically disadvantageous. This applies, for example, to the intra-Community transfer to a camp in another EU country, because ...
German tax law distinguishes at the level of income tax between profit and surplus income. Both have in common that the difference between revenue and expenditure is subject to taxation. The difference ...
With sustainable entrepreneurial success, even a GbR with only two shareholders will eventually become too small. Especially the question of limitation of liability increases with success. In addition, questions about ...
The German double taxation agreement with Dubai (DBA UAE) expired on 31.12.2021. So far, no new agreement has been signed or the validity of the previous one has been extended. However, many others ...
As a shareholder or shareholder of a GmbH, entrepreneurs sometimes do not need a monthly salary to finance their standard of living. One reason for this can be in capital or rental income, another in it ...
withholding tax (26.375 %) | Parts income procedure (60 % of the distribution x 40 % tax rate)
Germany has concluded a “DBA inheritance tax” with various states, including the USA. The double taxation agreement regulates which state may tax inheritances and gifts and in which cases the ...
Companies of all legal forms regularly pay only 9% corporate taxes in Dubai – in addition to various exceptions and benefits. German entrepreneurs could therefore come up with the idea of making profits over a company in the UAE.
Jurisprudence understands the concept of division of operations as the factual and personnel connection between two companies which are independent in themselves. But while the ownership company is only being created, ...
In order to circumvent the extended unlimited tax liability, the tax burden abroad must be at least EUR 77,000:
Anyone who owns real estate and holds it in private assets can sell it tax-free 10 years after purchase. However, the so-called speculative period only applies to certain cases, while in other constellations no ...
A business split occurs when there is a material and a human link between two companies. This in turn requires that a person in both companies has a uniform ...
German tax law knows how to record so-called de-knitting profits. They are always created when entrepreneurs or private individuals transfer certain economic goods from Germany abroad. In these ...
If entrepreneurs sell assets of fixed or working capital and this results in the discovery of hidden reserves, the resulting capital gain is in principle taxable in the year of the sale ...
Anyone who has bought a GmbH as a private person and had taken out a loan for it, should take quite a long time to repay the loan. It is faster if you first set up a holding company and then make the purchase ...
When selling real estate from private assets, the 10-year period of § 23 EStG must be observed. If the property is resold less than 10 years after its purchase, the profit is subject to personal ...
More and more people, also from Germany, decide to move to Dubai. In addition to the undeniably better weather, tax considerations often play a decisive role. Because in Dubai...
If you want to start a holding company, you should also keep an eye on when the first profit distribution of its subsidiary should take place. Because if you intend this in the year of the establishment of the holding company ...
The residential charity abolished in 1990 is to be reintroduced into German tax law with the annual tax law 2024 (JStG 2024). Specifically, the Federal Government is planning an adjustment of § 52 AO. After the amendment ...
§ 29 ErbStG leads to the expiry of the inheritance tax and gift tax. The most important case is that of § 29 (1) no. 1 ErbStG. Accordingly, the gift tax expires upon return of the gift. We explain...
The technical terms “regular protection” and “approval requirements test” known from inheritance and gift tax law are aimed at relieving company successions. They therefore concern exclusively operating assets ...
High-net-worth individuals and entrepreneurs like to use the family foundation as an instrument for asset succession. It is a self-interested foundation based in Germany or another EU country ...
Those who move their permanent residence to Dubai usually want to leave as little or no assets as possible in Germany. This applies on the one hand to vehicles, but on the other hand also to objects with ...
In the case of the contribution and transfer of business assets, it is possible in certain cases to submit an application to the tax office for the continuation of the book value. In addition, the law for economic goods of the ...
In order to transfer the shares of a GmbH to a holding company in a tax-neutral manner, you have to be creative as a minority shareholder. Because German tax law provides for a tax-neutral contribution only from a participation rate ...
Many successful entrepreneurs from Germany are currently considering emigration to Dubai. However, it more or less necessarily requires the “taking along” of the existing company, no matter in what legal form ...
With the draft of the Annual Tax Act 2024 (JStG 2024) published in mid-July, the Federal Government is adapting tax law to current circumstances. On board are tax relief, relief ...
A division of operations, if it occurs unprepared, regularly leads to considerable tax disadvantages. However, it can also be used as a targeted instrument for company or asset succession as well as in the context of ...
Holiday rentals experience a real hype, also through portals such as Airbnb and reinforced by the Covid-19 pandemic. More and more people use the opportunity to stay away from the big city rooms or apartments for a few days or ...
Many German entrepreneurs are interested in leaving Germany. Dubai plays an increasingly important role as a destination. In fact, there are a large number of factors that justify why they are coming to Dubai...
Foundations, and especially family foundations, are convincing with a number of tax advantages that can significantly accelerate long-term wealth accumulation. The tax benefits of a foundation can ...
The transfer of real estate – either within the family or between foreign third parties – regularly triggers various tax consequences. As far as income or gift tax arises, the ...
Special rules apply to commercial transactions. These can be found in §§ 343-372 HGB. Therefore, it is of central importance to know what is actually a trading business. In this article we explain when such a ...
For a long time, there was a rumor that there were no taxes in Dubai. Consequently, there would be no obligation to keep accounts. But since 2024 you have to be in the United Arab Emirates (UAE), thus also in Dubai ...
More and more people, especially entrepreneurs and wealthy individuals, are playing with the idea of emigrating to Dubai. Because the city is not only a tax haven, but also convinces with the best ...
If the shareholders’ meeting of the GmbH has recalled the managing director by resolution, the question arises as to when the recall is effective. It is fundamental between co-determined and non-co-determined GmbHs to ...
Farmers and foresters have several profit determination options available. One such is the determination of profit by average rates. We explain the requirements and how the profit is calculated afterwards.
The so-called progression reservation is a mechanism for realistically setting the tax rate applicable to income taxation. In Germany, this only applies to income tax. Even if income is partly ...
§ 38 (1) GmbHG regulates the free and at any time recallability of the managing director. Only if a corresponding agreement has been made in the statutes, the dismissal is only in the presence of important ...
The legal institution of disruption of the business basis also has significance in gift tax law. Accordingly, a donation can be unwound back. The result of the reversal is also the expiration of the gift tax. Thinkable ...
If you want to start a company in Dubai, you have to distinguish whether it should be in the core area of the United Arab Emirates (UAE), or in a Dubai Free Zone. Apart from tax and other...
In the case of a GmbH with several shareholders, you can usually only set up a holding company for individual shareholders if you pay taxes on the conversion process. Because the conversion tax law sees in the case of a ...
§ 29 ErbStG leads to the expiry of gift tax and inheritance tax. There are enumeratively listed the cases in which there is an extinction. We explain which conditions must be met and what ...
of which 60 % is taxable according to the partial income procedure § 3 no. 40 letter c, § 3c EStG | 15.907.50 €
The history of the church tax in Germany is complex and accompanied by many conflicts. Until today, therefore, it is debated whether one should reform the previous practice. Although in the Basic Law a ...
The OECD has published important documents on global minimums. For German companies, the temporary safe-harbour regulations are particularly important. We explain these regulations and what makes them special ...
§ 9 ErbStG comprehensively regulates the origin of inheritance tax and gift tax. The § 9 (1) no. 2 ErbStG concerns the origin of the gift tax, i.e. the case of a gift among living people. So...
Anyone who pays out capital gains, especially profit distributions, is obliged to deduct tax. The deduction is normally 25 % of the capital gains. Because the law basically exempts tax at the recipient level ...
Shares in corporations are usually transferred to an existing holding GmbH by way of the so-called share exchange. This path is to book values and thus tax-neutral, however, if the holding ...
Because income and inheritance tax law have only been insufficiently coordinated in Germany, double taxation can occur here in many cases. This is the case, for example, if the inheritance ...
Income from agriculture and forestry is privileged over other types of income – especially over income from business operations. It is therefore important to distinguish between the types of income. From this ...
Spouses, registered partners, but also non-marital unions often share a lot. This is why – especially single-earner partnerships – have joint accounts. But such joint accounts are ...
The tax code distinguishes between the correction of tax rulings or equivalent rulings and the cancellation of other administrative acts. The latter is between the revocation of a ...
It happens regularly that pensioners originally worked in Germany, but then moved abroad. But because they worked in Germany for a while, they have a ...
In times of high construction costs and lengthy procedures, investments in real estate abroad are becoming more interesting again. In addition to private investors, this also applies to institutional investors. However, if a property is located abroad ...
Exit tax is usually not paid. But there are situations in which it can even make sense to pay the exit tax voluntarily. Of course, this is related to a tax scheme that we ...
Almost all double taxation agreements (DTAs) include the concept of tax residence. On the basis of this, it is determined which state has the right of taxation to the private person or a company ...
The recognition of a foundation requires several aspects, both civil and tax law. Founders must first and foremost follow the prescribed procedure, in the course of which recognition by the ...
If an operating capital or partnership requires real estate for the exercise of its activities, they are gladly positioned in a rental company. This allows the operating company to make rental payments at ...
Living in Germany, working abroad – or vice versa. In times of increasing digitalization and flexibilization of numerous activities, more and more employees and entrepreneurs work worldwide. It comes in many ...
Disguised distributions of profits, or vGA for short, sometimes pose a considerable risk in the relationship between corporations and their shareholders. A lack of customary foreign nature leads to the refusal of the operating expense deduction ...
Anyone who wants to emigrate to Dubai as an entrepreneur and still has a German holding company without subsidiaries, because they were previously sold by her, often considers how to get the money from the holding company without an exit tax ...
Unlimited taxpayers can count foreign taxes paid for foreign income against German income tax, among other things, if the requirements of § 34c EStG are met. However, the crediting is ...
Not only conceptually does the tax code distinguish between the revocation of an unlawful administrative act and the revocation of a lawful administrative act (§ 131 AO). The withdrawal of an administrative act is in ...
Unlike Germany, the United Arab Emirates (UAE) tax according to the territoriality principle. This means that only income earned domestically is tax-relevant. Since the UAE has been with the ...
For limited taxpayers, the tax is calculated differently than for unlimited taxpayers. The calculation of the tax is regulated in § 50a EStG. Taxation is basically a gross taxation ...
With § 32a KStG, corporate tax law contains an independent amendment provision for tax assessments of shareholders. It goes beyond the amendment rules of the Tax Code (AO) and ensures that hidden ...
With the extended reduction according to § 9 no. 1 sentence 2 GewStG, companies managing real estate avoid paying business tax. The regulation is particularly interesting for corporations such as Immobilien-GmbH ...
Your own property plays an important role in most industries, as it serves as an office or storage space. However, it is rarely expedient, especially in the corporate group, to store the operational property in ...
Purchases and sales of real estate are generally exempt from VAT. Anyone who acquires a rental property is therefore usually not entitled to a refund of the input tax amounts incurred during the acquisition – but there are ...
Both in the financial administrative procedure and in the financial court procedure, the remedy information is important. However, it often happens that this is faulty. Mistakes in the financial court proceedings can ...
The so-called 183-day regulation determines the tax liability of certain groups of people in countries with which Germany has concluded a double taxation agreement. It is therefore mainly in the international ...
For German entrepreneurs, a tax-free move abroad is possible. For this purpose, a holding company is created with a foundation in Liechtenstein. The company can still remain in Germany. At the same time freeing...
With the so-called box privilege comes a comprehensive exemption from profit distributions. The legislature exempts dividends and other payments from corporate and business tax if the recipient of the payments ...
It is not only the substantive design of the global minimum tax that causes difficulties. In addition, there are procedural complications in connection with the creation and submission of the GloBE Information Return ...
In Germany, unrestricted taxpayers who rent real estate in Dubai without specifying this income in their tax return in Germany commit tax evasion. For a while, this was mostly...
Asset stock donations refer to those donations which are made to promote the assets to be received by a foundation. Your tax deductibility is regulated in § 10b paragraph 1a EStG. We explain...
The equity and thus assets of A-GmbH remain unchanged. While EUR 100,000 of cash assets (bank) are added on the asset side, debts on the liabilities side also increase by EUR 100,000. At the end of the...
According to § 6 (4) AStG, it is possible to pay the exit tax or in instalments according to the new legal situation. However, taxpayers then have special notification obligations. In this post we explain ...
An organisation exists when a company (so-called organ company) transfers all its profits to another company (the organ carrier) on the basis of a profit transfer agreement. The corresponding definition ...
An organisation exists when a company (so-called organ company) transfers all its profits to another company (the organ carrier) on the basis of a profit transfer agreement. The corresponding definition ...
The VAT carousel is one of the best-known and most widely used models for organized tax evasion. According to estimates, the use of the carousels alone escapes the German Treasury ...
An unlawful administrative act can be reinterpreted into an error-free administrative act according to § 128 AO. The reinterpretation is regulated in § 128 AO and is subject to certain conditions. This and the legal consequences of a...
The term “private asset management” plays the decisive role in income tax law in many places. Because it decides, among other things, the question of whether there is a division of operations or whether it ...
With § 3a EStG, German income tax law makes so-called restructuring income tax-free. Profits and other business assets arising during a business restructuring are thus subject to ...
In VAT law, a distinction is made between the so-called actual taxation and the nominal taxation. The latter is the rule, while the actual taxation is only applied in exceptional cases. This is a permission...
German income tax law provides for various tax exemptions. They are largely listed in § 3 EStG and primarily concern employees. This also includes shareholder-managing directors, in particular ...
Anyone who invests in real estate or other economic assets together with business partners will accept some disadvantages if the investment takes place in private assets. Because both the current income and ...
There are known cases in which companies transfer profits abroad via transfer prices in order to reduce the tax burden. Then the Member States of the European Union regularly impose the arm's length principle ...
The separation is a form of division and is regulated in § 1 (1) no. 2 UmwG. It refers to the “transfer” of a branch of business from an existing partnership or corporation to another company.
With the additional taxation according to §§ 7 to 14 of the Foreign Tax Act (AStG), the legislature wants to counteract arrangements in which a German taxpayer makes profits through foreign intermediaries.
If you want to start a company as an individual entrepreneur, the choice of a sole proprietorship as a legal form often makes sense, because it is very easy to set up. However, it happens just as often that ...
According to § 4 (1) sentence 3 EStG, a taxable but fictitious extraction occurs when an economic asset is transferred from a German to a foreign permanent establishment. This so-called de-engagement taxation ...
According to § 4(4a) EStG, certain debt interest is not deductible for tax purposes. The prohibition of deduction comparable to paragraph 5 always applies in cases where an entrepreneur carries out so-called transfers. Is this the...
The term extended growth model is understood to mean a conversion of a GmbH & Co. KG into a GmbH. This conversion takes place through an addition of the partnership to the capital company, which is ...
Family foundations are regularly self-interested, so they do not serve charitable or church purposes. This applies every 30 years § 1 (1) no. 4 ErbStG. According to the relevant regulations, the property ...
The legal consequence of the additional taxation is that the income subject to additional tax in accordance with § 7 (1) AStG in conjunction with § 10 AStG is to be recognised as an additional amount by the taxpayer. At the ...
Anyone who sells real estate within the family, for example to their own spouse, can lift considerable depreciation potential. At the same time, the buyer is obliged to pay the agreed purchase price.
For various tax arrangements and also to use optimal depreciation, it may become necessary to evaluate a brand. “Brand” is the generic term for the so-called company value, i.e. the market value of a ...
Landlords are regularly members of a so-called community of owners. Alternatively, they rent an entire house, but should or must also reserve for future repairs and ...
Income tax law provides for usable assets in principle a so-called depreciation (AfA). The legislator assumes that objects such as EDVs, vehicles or even real estate are uniform.
Convertible bonds are a special form of investment and also an option to involve employees in the employer’s company. Your tax treatment is quite complex, which ...
The regulations for the global minimum taxation – specifically the “taxation of income” to 15% – must be implemented on the one hand by the financial administration of the country in which the parent company is located. On the other hand, however, ...
According to § 3b EStG, employers can pay surcharges for holiday and night work in whole or in part, depending on the amount, tax-free. Many GmbH shareholders are at "her" company as managing director or ...
Whether and under what conditions the damages tax paid to a company is very controversial and depends on the individual case. We give an overview and explain which principles in the ...
The Property Acquisition Tax Act (GrEStG) provides for obligations to notify the property acquisition to the tax office. The incorrect or missing notification affects, inter alia, the limitation period of ...
A national court may refer a question of law to the European Court of Justice (CJEU) in the context of the preliminary ruling procedure under Article 267 TFEU. However, this submission to the ECJ is subject to certain conditions ...
In the United Arab Emirates (UAE), a new tax exists since mid-2023, namely the corporate tax. Since then, Dubai has paid a lump sum of 9% corporate tax on corporate profits. There are ...
In addition to corporate tax, business tax is a significant burden, especially for corporations. Because, unlike sole proprietorships and partnerships, they cannot pay the municipal tax according to ...
Since 01.01.2007, the annual publicity in Germany is strictly regulated. However, there are some limitations and benefits in disclosing the financial statements. This applies to partnerships and ...
There are considerable real estate assets in numerous families, the value of which has increased significantly in recent years. If these properties are rented out, tax saving potentials may remain unused – because the ...
The installation and operation of photovoltaic systems can have significant tax implications. This applies in particular to partnerships. This can be particularly problematic for real estate ...
Expenditure relating to the budget is regulated in § 35a EStG. Thus, household services can also be taken into account to reduce the tax burden. Near-household services are commissioned ...
Mongolia is a prime example of a former Eastern Bloc state that has found a path towards a stable democratic state order and market economy. Mongolia has to deal with a large number of ...
The deregulation tax, like the exit tax, affects entrepreneurs who move their residence abroad. As a result, they lose their status as unlimited taxpayers in Germany. This means for the...
Personal loans are loans between several, usually two, private individuals. For example, parents grant a personal loan to their children, who use this money to purchase a property belonging to the father. Through these and ...
It is often said that the Federal Financial Supervisory Authority (BaFin) also violated its obligations in the Wirecard scandal. Thus, it should also be liable to the investors for replacement. The Federal Court of Justice (BGH) has ...
The income tax in Germany is by no means static. Rather, there has been a lot of momentum in the development of income tax in Germany. The development of the basic allowance alone took place in part large ...
The Commission decided that the Irish financial administration had disallowed the Irish branches of Apple Sales International (ASI) and Appel Operations Europe (AOE).
Hospitality costs can arise in various situations. The classic is hosting business partners at a business dinner. But there are also costs in the catering of own employees. But these are also ...
Both the factual requirements and the legal consequences of the general additional taxation are regulated in § 7 (1) sentence 1 AStG. Accordingly, it is assumed that an unlimited taxpayer ...
The history of wealth tax in Germany is marked by a contrast. In the early days of the Federal Republic of Germany, the property tax remained unchanged for many years. It wasn't until 1974 that the first new edition...
The objectives of both global minimum taxation and additional taxation are to prevent abuse and restrict cross-border tax competition. However, the question is to what extent the global...
Dubai in the United Arab Emirates (UAE) is an emerging business location and already one of the most important in the Middle East. The free trade zones in Dubai play a prominent role among the ...
Entrepreneurs write off assets of the company assets in principle over the usual period of use of the respective object. The depreciation reduces the profit and also the ...
A share buy-back occurs when a corporation acquires shares in itself. In particular, when the GmbH shareholder leaves, a share buyback must be considered. It can lead to various tax ...
A share buy-back occurs when a corporation acquires shares in itself. A quotal share repurchase therefore exists if the repurchase of the shares takes place in accordance with the company relations ...
Profits and losses are taxable if the taxpayer achieves them under one of the seven types of income – so far, so clearly. Unwritten condition for recognition by the tax office is ...
The action for annulment (Article 267 TFEU) is a legal remedy enabling taxpayers to assert that it is contrary to Union law. We explain to which conditions the action for annulment ...
With the Future Financing Act, which was finally adopted by the Federal Council on 24 November 2023, the Federal Government is combining comprehensive measures in corporate and capital market law. Also tax changes with which under ...
Whoever acquires land does so either in the built-up or in the undeveloped state. If an object is still on the respective ground and has to be demolished first, usually considerable ...
According to § 8 GewStG, certain operating expenses are added back to the profit from commercial operations, provided they have previously reduced the profit. This applies according to § 8 no. 1 letter a GewStG for example for interest and ...
The BFH has ruled in a recent case-law that the exit tax is illegal in some aspects. More specifically, the lack of a deferral mechanism constitutes a breach of Article 49 TFEU at EU level ...
Year | German Foundation | Tax burden | Liechtenstein Foundation | Tax burden
Who rents real estate, hereby earns income from renting and leasing - so it is regulated by the income tax law. According to § 21 paragraph 2 EStG takes place in the case of cheaper rental, i.e. such rental far ...
Alptekin, Sepha | Clarified and unclear application questions of commercial coloring according to § 15 para. 3 No. 1 EStG,
According to § 3 no. 51 EStG, tipping is tax-free. There are only a few final requirements for tax exemption:
The best way to optimize a GmbH sale is by converting it into a company. This benefits both seller and buyer. Sellers can apply the so-called half tax rate, which ...
In turnover tax, a change from nominal to actual taxation can sometimes be useful, for example for increasing liquidity in the company. However, certain conditions apply here, the § 20 UStG ...
Volume 5: AStG, EigZulG, FördG, FZulG, InvStG, InvZulG, KapErhStG, SolZG, StAbwG, UmwStG, VermBG, WoPG
When it comes to the valuation of companies and real estate, there is often talk of the so-called income value method. For him, the achievable selling price is based on the annual profits or revenues achieved in recent years.
Business assets can be transferred to other persons in Germany without inheritance and gift tax – either by way of gift or by way of inheritance. However, the tax exemption for business assets applies ...
Fix and flip refers to a particular strategy of investing in real estate. The focus is on the acquisition of objects in need of rehabilitation, their subsequent upgrading and immediate resale. The difference between ...
The principle has been valid for a long time: internal sales of an organization are not taxable. Now he could tilt. The European Court of Justice (ECJ) has been responsible for considerable uncertainty in connection with the ...
(Recommendation) | Commentary on the Income Tax Act 448. Additional delivery, Heidelberg 2023
Now more there is the new application decree for the AStG. Its final version justifies some changes in the context of the exit taxation for natural persons. We clarify which changes result from this.
Advantages of a partnership can also occur in questions of annual financial publication. The aim is to regularly avoid the publicity of the annual accounts or to conceal earnings power. In ...
Explicit in Article 100 paragraph 1 GG, §§ 80 ff. in conjunction with §§ 77 ff. BVerfG regulates the competence of the courts on the compatibility of the simple law with the constitution and the provincial laws with federal law.
Many entrepreneurs today are considering whether to emigrate to Dubai. Whoever is a GmbH shareholder must also pay attention to the exit tax. Because it only affects ...
When entrepreneurs move abroad, taxes are often incurred, which can be avoided by tax design. Here, the avoidance of the exit tax according to § 6 AStG is in the foreground. This is why you often convert a GmbH into a ...
For families with multiple companies, double holding is the ideal approach to structuring. Both the optimization of taxes and the best order of the family members are in the foreground.
The income from § 17 EStG concerns those arising from the sale of privately owned shares in corporations. The Bundesfinanzhof (BFH) had to decide whether the targeted ...
Very wealthy people often face many challenges with their assets. One of them is wealth succession. In Germany, it is subject to inheritance tax or ...
Foreign income is on the agenda for many companies. However, they can also be incurred in the private sector, for example if a rental property is located outside Germany. In these cases ...
P2P loans, also known as “private loans” in German, have enjoyed great popularity for many years. In addition to specialized platforms, their degree can also be “face to face”, for example between ...
The concept of donation covers all free donations. However, if the recipient provides a return, one speaks of a mixed gift. Because an enrichment only takes place then, as far as ...
With the Minimum Tax Act (MinStG), which the Bundestag adopted in November 2023, Germany is transposing the EU Minimum Tax Directive (2022/2523) of 15.12.2022 into national law. The Minimum Tax Act ...
A non-profit GmbH, gGmbH for short, is tax-privileged in many respects. However, the prerequisite is the pursuit of certain purposes. In addition, the gGmbH must not engage in any economic activity in the actual ...
Value at 01.01.: EUR 20,000 Value at 31.12.: EUR 25,000 increase in value thus EUR 5,000 | Value of the shares at 01.01. (EUR 20,000) x Base interest 2.5% x 70% (§ 18 (1) sentence 2 InvStG) Base income thus EUR 357.00
German tax law is bound by a large number of framework conditions that go back to the Basic Law. In addition to the objective net principle and the subjective net principle as well as the performance principle, ...
When selling a sole proprietorship, there are sometimes considerable taxes on the profit. So if you want to save taxes here, convert your own company first into a GmbH. Even better is...
Buildings erected on foreign land are regularly transferred to the property owner. At the same time, the construction costs were borne by another person, such as the entrepreneur spouse ...
The purchase, rental and sale of real estate are classically attributable to private asset management. Income is covered by § 21 EStG, capital gains are tax-free after 10 years. Derogations ...
There are situations whose tax classification is deeply controversial and therefore the legal situation is opaque. Nevertheless, tax return forms primarily do not ask for individual facts, but ...
Term life insurance relieves the financial consequences of the death of an insured person, usually the spouse. If the risk arises, the person entitled to receive the ...
It makes sense not only internationally to shift profits between individual company locations. Also nationally, in Germany this offers itself. The reason for this is that the municipalities freely charge their business tax levies.
Taxes can apply to various sources. Historically, this is usually about taxes on income or on assets. The latter category certainly includes the window control, which in the ...
Temporary employment plays an important role, especially as a design model in the context of trade tax in the case of dismantling. It is therefore important to establish the legal framework for the admissibility of ...
Tax law in Germany is subject to certain basic principles, according to which it should be guided. In addition to an objective net principle and the performance principle, there is also a subjective net principle. It regulates ...
Transferring assets without incurring inheritance or gift tax is possible. This is ensured on the one hand by the allowances for inheritance and gift tax. However, tax arrangements are even more effective. Here ...
The beard tax has been levied at different times and in different places. Sometimes it only served purely fiscal purposes, sometimes it should have a steering effect. So it is known that in Lycia already in the ...
With the Growth Opportunities Act, which was presented for the first time in July 2023 and was discussed in the German Bundestag in October 2023, the Federal Ministry of Finance (BMF) wants to introduce new tax incentives, in particular for investments in ...
Taxation | Distribution from O1-GmbH | Distribution from O2-GmbH | Distributions from company custody | Sales profits in company custody (shares)
The so-called home swing, also known as the “Sylter model” is an interesting design for the tax-free transfer of assets between spouses and cohabiting partners. Practical importance it has above all ...
When assessing the company’s participation in the financial statements, doubts regularly arise. These occur precisely when profit transfer agreements have been concluded between the companies and an organization ...
The conversion of individual companies into a GmbH can generate tax advantages that can be used in the future. In this way, one can position a claim to the GmbH during the conversion, which later helps to make profits from the company.
The term “sister societies” is a metaphor for companies that stand next to each other like siblings. The background is the joint participation of the same partner. Is ...
The terms “tax entanglement” and correspondingly also “tax de-entanglement” play decisive roles again and again, especially in situations in international tax law. They refer to the acquisition and elimination of ...
Tax rate (income tax) | Up to 45% (plus solidarity surcharge and, where applicable, church tax) | 15% (plus solidarity surcharge)
Type of income | Before division of operations | After the split-up
Anyone who buys, sells, gives away, contributes or otherwise transfers a domestic property usually carries out a transaction subject to real estate transfer tax. This is the property transfer tax, the state matter ...
The tax liability mechanism plays a decisive role in VAT law, especially in cross-border situations. Because sometimes there is a double taxation of supplies or services if ...
The term “related person” appears in various places in German tax law – for example in the Foreign and Income Tax Act. It is important to note that contracts and ...
German tax law basically knows a clear distinction between self-employed and non-self-employed activities. In addition to the Income Tax Act (EStG), this is also known, for example, from § 2 (2) UStG.
Remaining enrichment within the 10-year period according to § 10 ErbStG | EUR 2.000.000
Anyone who has real estate and wants to tax it optimally should appreciate the depreciation. Although it is usually only 2% of the acquisition costs in the year, there are possibilities with which the depreciation ...
The new valuation right under property tax follows a zone concept. According to this, the soil indicative value is in principle binding for all properties that lie within the soil indicative value zone. § 247 (1) sentence 1 BewG ...
The Bundesfinanzhof (BFH) had to deal with the question of whether and, if necessary, under what conditions a donation deduction according to § 10b EStG is to be refused due to lack of gratuitousness of the donation if the charitable ...
Insofar as there is a tax link in Germany, Germany can regularly tax world income, including income from abroad. However, the German financial authority must first know about the ...
Tax havens enjoy great popularity in international corporate tax law, because they enable the clever transfer of profits to Germany or abroad. At the same time, the German Treasury ...
Type of depreciation | Linear (§ 7 (4) no. 1 EStG) | Degressive (§ 7 (5) sentence 1 no. 1 EStG)
The Bundesfinanzhof (BFH) had to clarify the question of whether profit reductions in the form of partial value write-offs on the participation in a (foreign) corporation, as well as a share capital company to the holding company ...
The assessment of a statutory-breaking decision is controversial. One of the fundamental problems with the right to improprietary resolution is the relationship between nullity and contestability. This ignites before ...
The rental of real estate was and is a lucrative business, because it is not for nothing that the so-called “concrete gold” is regularly mentioned here. Who wants to rent real estate, but must also deal with the tax ...
Discussions and conversations about tax saving are more or less inevitably also associated with the topic of “tax havens”. At this point, the ghosts often differ, because while one side control havens as ...
+/- Correction by § 14 paragraph 1 and 2 ErbStG – Consideration of previous acquisitions by donation and death | Acquisitions within a 10-year period are to be added together, any allowances in this ...
If the taxpayer has an actual starting point in Germany, the German tax administration can in principle levy the tax on the entire world income of the taxpayer. However, the state ...
In July 2022, the possibility of the virtual Annual General Meeting in shareholders’ law was opened in § 118a AktG. We explain how such a virtual general meeting must take place, what procedural facilitation there is and ...
According to § 47 (4) sentence 1 GmbHG, a shareholder who is to be relieved by a resolution or released from a liability has no voting rights. He must not do such a thing for another ...
Even without using the allowance or the tariff benefit of § 34(3) EStG in the sale of a business or in its abandonment, the tax burden can be reduced to the profit of the business sale. This ...
The fifth rule of § 34 (1) EStG is a tariff advantage for extraordinary income. Such extraordinary income includes profits on disposal or cessation of operations. We explain how...
Managing Directors of a GmbH can also take time off in accordance with § 38 paragraph 3 GmbHG. There are different reasons for taking time out. We explain when you can take time out, what proofs have to be provided and what rights ...
In its tax collection, Germany follows a multitude of rule-of-law principles, which are based on our constitution and are further developed by constant jurisprudence. On the one hand, the objective ...
The global minimum taxation of companies is always part of media reporting. The reason for this is an EU Directive from 2022 (2022/2523), which must be transposed into national law. The ...
Natural persons who have neither their place of residence nor their habitual residence in Germany can still be taxable with certain incomes. This limited tax liability results from § 1 (4) and ...
A new decision by the Bundesfinanzhof (BFH) significantly increases the risk of permanent establishments for taxpayers. The BFH has now decided that even a small locker is sufficient to establish a company in Germany.
Companies in Germany are subject to taxation in the case of transfer by way of inheritance or gift. This can be tax relief, if it is a beneficiary property ...
From 2024, a GbR can threaten an operating split. This is due to the extensive legislative changes introduced by the MoPeG for the reform of partnership law. Especially the company civil law, so in short ...
Inheritances and gifts are subject to taxation under the Inheritance and Gift Tax Act (ErbStG). However, the corresponding regulations also include transactions comparable to an inheritance or gift ...
Cryptocurrencies such as Bitcoin and Ethereum enjoy great popularity in addition to their use as a means of payment and as an investment. At the same time, investments in various coins can also result in losses ...
Political interest in Germany has always been subject to strong fluctuations, but there are also certain constants – for example in the area of donations. Who decides to donate money or material to "his" party ...
Note: this is a contribution according to old legal situation! In the meantime, the ten-year speculative period for lending has been lifted (see BMF letter of 10.05.2022 paragraph 63).
“Whoever makes a mistake and does not correct it, commits a second” – Confucius already knew. Although the term “error” in tax law is certainly somewhat inappropriate, interim losses can ...
Those who play in the casino, for example in Europe’s largest casino in Campione d’Italia, usually do so as part of their leisure activities. Profits and other income therefore do not constitute income in the sense of ...
“Those who fear loss cannot make a profit” – this is a well-known quote from the US billionaire and investor George Soros. Converted to the stock market, this means that stock losses ...
The tax code does not entitle taxpayers to access the files of the tax authorities. However, it is currently discussed whether Article 15 GDPR can also be used in the financial administration procedure.
In the German economy, it has been in crisis for years at several corners and ends – studies show this again and again. Companies complain in particular about the high energy prices, a comparatively heavy tax burden and the ...
When talking about prominent cases of tax evasion in Germany today, few remember the Flick affair that made headlines in the early 1980s. Because the tax investigation followed then ...
Boris Becker has been a lot: tennis star, figurehead, poker face, Central African sports attaché in spe. But he had also slipped into less laudable roles, such as that involuntarily comic one, as he was in a...
In tax planning in the national sector, business tax is of considerable importance. The reason for this is that the lifting rates are set by the municipalities. That is why they vary between 200% and ...
9. June 2022 | What side effects can a criminal tax case have and how do you defend yourself against it?
In addition to domestic legislation, the German legislature also has the right to tax foreign income in many cases. This can result, for example, from a double taxation agreement (DTA) and represents the ...
Uli Hoeneß is particularly familiar to us as president of the football club 1. FC Bayern Munich. Some people may also remember that he was once a very successful football professional. So he has with the 1st FC ...
If a partnership does not generate any commercial income and the participation of at least one shareholder is in its business assets, the tax term refers to a so-called zebra company. The ...
Entrepreneurs who want to purchase a property for their business should always pay attention to how they position the property. The reason for this is on the one hand that you can also participate in the future sale of ...
Intangible economic goods – a term that appears in many places in commercial and tax law, but with which many people can only do little at first glance. And in fact, immaterial ...
Own acquisition costs (EUR 600,000) | Continued acquisition costs (60 % of EUR 800,000); EUR 480,000
Depreciation rate/AfA level | 2 % per year / EUR 2,600 | 9 % per year / EUR 11,700
There are many tax havens in the world. Often these are islands in the Caribbean or the South Seas. In addition, many tax havens are relatively small countries, such as Belize, Malta or San Marino. But there are also...
31. December 2018 | Additional taxation: Recognition / Avoidance / Designing with example
Home searches in the morning in the morning are not an exception in the context of the tax investigation, but the rule. There are various reasons for this. On the one hand, it hopes to surprise the suspicious persons. Furthermore, ...
Tax evasion is a crime. Nevertheless, each case has its own facets, such as motivation, which may have led to tax evasion. In this respect, tax evasion has its own criminal case ...
The Regional Court of Munich I has found in a widely publicized judgment the star chef Alfons Schuhbeck of tax evasion to be guilty. He is said to have hired an employee to manipulate cash programs so that ...
In 1996, the financial administration accused the tennis icon Steffi Graf of having evaded taxes in the amount of DM 41 million. The tennis player referred to her manager, so her father Peter Graf, as well as her ...
3. November 2021 | Tax models of the rich – Handelsblatt researches at Kanzlei Meyers & Partner AG
05. April 2022 | Publicity of the commercial register: errors in entries in the commercial register
Tax liability is the most important basis for the application of the Income Tax Act (EStG). Without the existence of unlimited and limited tax liability, the study and practical work of a ...
The arm's length principle is an instrument used in financial management to determine whether a legal relationship between a GmbH and its shareholders is appropriate or whether it leads to a hidden relationship.
External tax audits are always on the agenda at corporations such as the GmbH. Rather rarely does it come to a complete agreement with the examiner or the examiner of the ...
The share deal with real estate has long been a preferred design model of larger corporations whose core business is renting real estate. This is about the fact that instead of real estate shares in ...
The tax authorities have a wide variety of types of audit available within the framework of the external tax audit. In addition to the general, comprehensive audit, the tax offices can also focus on certain focus areas.
Corporations such as GmbH and UG are legal entities under private law. As such, they do not have an independent capacity to act, but can also use their shareholder-managing directors to finance and ...
In order to reduce the business tax burden, it is common to relocate operational activities to communities with low business tax rates. If the company is located there, however, it may be that it ...
According to § 15b (1) EStG, there is a so-called offsetting prohibition of losses if they are based on a tax deferral model. With the standard, the legislator wants to restrict corresponding models and taxation ...
Real estate, whether rented commercially or for residential purposes, is usually depreciated according to the percentages in § 7 (4) sentence 1 EStG. The annual depreciation is a maximum of 3%, for most ...
EUR 12,000 (EUR 1,000 x 12 months) | EUR 11.781 (EUR 850 x 12 months plus VAT) | EUR 219.00 | EUR 11.781
A successfully operating GmbH generates many a profit over the years. How to use the profits thus accumulated, we want to give you in this article on the basis of eleven design models ...
Groups are affiliated companies, each of which draws up its own financial statements in the form of balance sheets. For investors, credit institutions and other economic operators, however, only the overall situation of the Group ...
Financial authorities – which include not only financial but also the main customs offices – have the possibility, under certain conditions, to collect tax liabilities for reasons of equity or irrecoverability in deviation from substantive law.
There are some tax limits: EUR 35 for gifts to business friends, EUR 60 for attentions to employees, EUR 50 for salaries in kind to employees, EUR 800 for low-value assets and many ...
The solidarity surcharge is heavily criticised. A case before the Federal Constitutional Court (BVerfG) is currently pending. Most recently, the Federation of Taxpayers wanted a model trial in front of the Federal Finance Court.
GmbH shareholders can avoid the exit tax in Germany with a foundation in Liechtenstein. But the way to achieve this requires a sophisticated strategy. Because the transfer of the GmbH to the foundation in Liechtenstein ...
02. May 2022 | Submission to the Federal Constitutional Court – Standards Control Procedure in Tax Law
The partnership company (PartG) is a special form of company civil law (GbR). It is aimed at members of the liberal professions within the meaning of § 18 EStG and enables their association, in the case of doctors ...
In external tax audits, including in the context of a company-related assessment (BNV), there can always be disagreements between the tax office and tax consultants. With an actual understanding ...
Mixed use exists for real estate if the property serves both VAT-paying and VAT-free purposes. Then only the proportion of the use subject to VAT may ...
Tax consultants are important companions of the client in tax matters. You take over the communication with the tax office, check notifications and other administrative acts, ...
The appeal against a tax assessment is the first and most important remedy in the taxation procedure. It enables the tax office to change the entire decision - in favor of, but also to the disadvantage of ...
Cross-border tax arrangements are an essential part of tax consulting, especially for international corporations. Since such models usually lead to a reduction in the control load, if the ...
The Bundesfinanzhof (BFH) has recently ruled on a case that reveals a legal loophole in inheritance tax law. In certain situations, no inheritance tax is incurred in Germany. Condition for this ...
From a tax point of view, a rental of assets to one’s own GmbH seems to be tax-optimal. Because the objects remain part of the private assets and can therefore be tax-free at first glance according to § 23 EStG ...
The exemption order is particularly important for your investment income and was increased in 2023. You can apply for this at the bank. We explain what the exemption mandate is, what it does and why it makes sense ...
An operating split exists when there is both a material and a human connection between a holding company and an operating company. The tax often serious consequence is that a resolution ...
Capital gains tax is a special form of income tax. It is determined – hence the “special” – with its own, uniform and “flat” tax rate. At the same time, capital gains tax ...
According to the Income Tax Act (EStG), income from commercial operations includes both current and one-off income (commercial capital gains). While the current profits are regulated in § 15 EStG, you will find the ...
Motor boats cost a lot of money. In practice, it would therefore be possible to deduct this sum from taxes. The Bundesfinanzhof (BFH) has decided when you can deduct expenses for a motor boat for tax purposes. The ...
Spectacular cases of tax evasion continue to arouse widespread public interest. And certainly the first impression in response to this is often that the tax evaders probably only for one reason ...
In terms of tax, it can be advantageous to pay private health insurance contributions in advance in order to reduce the tax burden. We explain why and what you have to consider when paying a contribution.
Heirs can claim the estate liabilities, such as funeral costs to reduce inheritance tax. For this purpose, there is a lump sum of EUR 10 300 according to § 10 paragraph 5 no. 3 sentence 2 ErbStG. The ...
Income from business operations is the focus of the Income Tax Act (EStG) par excellence. After all, most entrepreneurial income (as well as all profits of corporations) falls under this ...
Corporate structures are a good thing from a civil and tax point of view, because they make it possible to combine tax advantages from different countries. At the same time, in every country of the world, different ...
The Belize IBC is a form of company that is especially available to foreign investors in this country. It is now very similar to a domestic LLC, but enjoys it due to the ...
You may already think when reading the headline: “Serious? pleasure tax?” in fact, there is a levy with this name in all federal states of Germany. It is elevated to “special pleasures” ...
Real estate, also known as “concrete gold”, has always been one of the most consistent and sought-after asset classes. Property owners have been able to experience a real explosion of value in the past decade, especially in metropolitan areas.
The term “international tax law” refers to legislation that regulates the tax treatment of foreign-related matters. They include, for example, the assessment of residence and management ...
The Limited Liability Comany (LLC) is one of the most popular legal forms in the United States. Even Google has recently switched the legal form from a corporation to an LLC. We explain why the LLC so ...
With a charitable foundation, you can save above-average taxes in the year of its establishment. This is especially the case if you earn exceptionally high income in an investment period ...
23. October 2020 | Liechtenstein – Saving Taxes at ESt & KSt and IP Box & Foundations
You can sell a craftsman service and thereby reduce the tax burden. In order for you to really benefit from it, however, you have to consider a few things. This includes, for example, the amount of costs or the type of work. All ...
A family can rent their properties tax-free. For this purpose, the family members set up a family GbR. The parents then sell their properties to them, whereby they increase the value as much as possible.
In addition to the unlimited tax liability, German income tax law also knows the limited income tax liability. regulated in § 1 (4) EStG, subjects it to limited taxable income within the meaning of § 49 ...
If entrepreneurs take advantage of the opportunity to work in the home office, this offers certain tax advantages. Because per day in the home office, entrepreneurs can set EUR 6 as a home office lump-sum, for ...
Even if the time limit for filing the action has passed, there is still a possibility to obtain a decision on the substance. This requires an application for re-establishment. We explain which...
In addition to commercial income and agriculture and forestry, the Income Tax Act (EStG) still knows self-employed work within profit income. It is finally regulated in § 18 EStG and includes the ...
If you inherit a business, you are liable for its liabilities. For the sole proprietorship, liability is regulated in § 27 HGB. We explain when and to what extent you are liable, how you can limit this ...
An adjustment notice shall be issued on a regular basis on a provisional basis or subject to verification. But what does that actually mean, what distinguishes the two instruments of financial management and what risks can ...
In the vernacular, the company itself is regularly referred to as a company. Actually, the company is only the name of the company. Therefore, you have to think about the company when starting the company ...
The Hamburg-based startup Lemonaid has spent about EUR 7,000,000 on social projects in recent years. The basis for this is a commitment to the buyers of the drinks they produce that they will sell per ...
23. February 2019 | Founding of GmbH in Germany: Costs / Steps / Benefits / Capital / Duration
Exceptional circumstances often lead to extraordinary taxes. Thus, the high debt of Romania led to the legislature introducing a witch tax in 2010. Because up to that time, for such services ...
Income from non-self-employment belongs to the surplus income and is the type of income that is most common in Germany. Because they concern the “classic” employees and civil servants who are ...
Income from capital assets is one of the most relevant areas of tax law, especially for GmbH investments and private investment. Also in many training and study programs there are considerable ...
Capital income within the meaning of Section 20 of the Income Tax Act (EStG) is treated particularly favourably for tax purposes. With the separate tax rate for capital income according to § 32d EStG, the tax burden is in most cases ...
Income from renting and leasing is regulated in § 21 of the Income Tax Act (EStG). They are in particular in the case of a paid transfer of built-up and undeveloped land as well as so-called ...
If the decision has not been issued subject to inspection (§ 164 paragraph 1 AO) or provisionally (§ 165 AO), tax notices and declaratory decisions can only be corrected, amended or repealed ...
The open commercial company (OHG) is a partnership whose purpose is to operate a commercial trade under a joint company and in which – in contrast to the limited partnership (KG) – at ...
The legal form of the KGaA is regarded under company law as a mixed form between a KG and a public limited company. In particular, the low influence of foreign shareholders makes this legal form very important for family companies.
17. January 2020 | GmbH shareholders: Managing Director salary or profit distribution?
Different methods are used in the valuation of real estate. However, you do not have a real choice, because § 182 Ratingsgesetz (BewG) prescribes which evaluation procedure you must use ...
The Valuation Act (BewG) explicitly distinguishes between common value and partial value. Both regulations are general norms, which apply when an individual tax law such as the EStG does not make a concrete statement on the interpretation of the ...
The valuation of land plays a role especially in inheritances and donations. For tax purposes, the enrichment of the purchaser, i.e. the value of the transferred assets as a whole, is relevant. All ...
In particular, for inheritance tax purposes, you must evaluate shares in companies according to § 12 of the Inheritance and Gift Tax Act (ErbStG). As a rule, you apply the simplified income value method. The ...
Commercial law, which also applies to tax accounting through § 5 (1) sentence 1 half sentence 1 EStG, makes it possible to set aside provisions in a wide variety of cases. However, the tax law in §§ 5, 6 ...
Employees who commute to work on a daily basis regularly include the associated costs as advertising costs in their tax return via a travel expense lump sum. However, they can only use the distance fee for ...
The Inheritance and Gift Tax Act (ErbStG) regulates with a total of 39 paragraphs everything you need to know about the tax type. For reasons of simplification, we speak uniformly of the inheritance tax, since the legislature ...
German commercial law knows the principle of accrual-based profit determination. Efforts and earnings should always have an impact in the calendar year to which they actually belong economically. If it comes to a...
Many entrepreneurs would like to offset the profits and losses of a subsidiary of their holding company. However, this is primarily possible directly between the subsidiaries. At the latest at ...
The valuation of assets is governed by tax law according to § 6 EStG. The individual paragraphs and numbers of the standard contain provisions which are partly identical to commercial law, but also partly different from it ...
The criminal tax proceedings, in particular for tax evasion, shall take place before the ordinary courts. Therefore, all customary rights of refusal of information apply here, to which the persons concerned, for example ...
Corporate income tax (KSt) is in fact the “income tax for corporations”. But in order for the German Treasury to be able to raise it at all, the respective corporation must either be subject to the limited or the ...
Unlike open-ended, hidden profit distributions (vGA) from a corporation take place without a corresponding distribution decision of the shareholders. Since they must not affect the income, they will ...
For the preparation of the tax balance sheet, the balance sheet drawn up in accordance with commercial law regulations (trade balance sheet) is in principle decisive. This so-called principle of decisiveness can, however, in different cases ...
A criminal tax case is basically a “proceeding like any other” – and can end with severe penalties for the accused or the accused. On the particularly serious case of tax evasion (§ 370 ...)
When photovoltaic power generation becomes commercial, it is time to talk about tax optimization. This is because photovoltaic systems have the potential of a wide range of control designs. So ...
If a corporation (in particular corporations such as the GmbH) has its registered office or management in Germany, it is liable for unlimited corporate tax. However, if none of these conditions are met, a ...
Concealed deposits are de facto the counterpart to hidden distributions of profits. They exist when a shareholder grants asset advantages to “his” corporation outside the regular deposits. A hidden...
1. | Recording of capital income in the actual amount or in the amount of profit (§ 8b (1) and (2) KStG) | Accounting of the income in full if conditions are met (in particular § 8b (4) sentence 1 KStG ...)
The recognition and valuation of assets are of great importance in the tax balance sheet. Basically, however, it is first to clarify whether the entrepreneur is at all to create a ...
If you want to invest in a GmbH as an investor, you can choose different procedures. On the one hand, this is possible through a direct participation in the capital of the GmbH. The way there leads to a capital increase, the ...
Double taxation treaties, or DTAs for short, regulate the taxation of natural and legal persons who are resident in several contracting states. The aim is to avoid double taxation of income, since regularly in ...
According to § 5 (1) sentence 1 EStG, taxpayers who are obliged to keep accounts or do so voluntarily must pay for tax purposes the profit under commercial law (trade balance and profit and loss invoice (GV)) ...
If a limited liability company holds a stake in another limited liability company, §8b(1) and (2) KStG exempt 95 % of income and profits accruing from tax. Conversely, profit reductions and ...
Due to the so-called exit tax, GmbH shareholders who move their residence abroad must tax the profit from a fictitious sale of their shares. Clubs are exempted from this regulation ...
The insolvency proceedings serve not only the equal satisfaction of all creditors but also the restructuring and restructuring of the affected company. As a result, economic performance should be safe or ...
The expansion of renewable energies, generated also and in particular by PV systems, continues to progress. It is an essential part of the energy transition, but was until the adoption of the annual tax law 2022 (JStG 2022).
If you want to convert a sole proprietorship into a GmbH and use the opportunity to make this retroactive, then this has an impact on accounting. Because during the eight-month retroactive period ...
The establishment of a corporation, in particular the GmbH, can be extremely attractive for tax purposes, especially with higher profits. However, this also applies to an acquirer who has a company with high losses.
The legislator makes with §§ 14 and 14a UStG numerous requirements for a proper invoice. Their existence is relevant in various respects, for example as a prerequisite for proper accounting ...
Subsidy (creation of provision) | Expenditure Subsidy EUR 200,000 | to | Pension provision EUR 200,000
Tax burden at company level | EUR 15,000 (operative and only GmbH) | EUR 15,000 (operative GmbH)
Now working in the home office has been the subject of tax returns of employees and entrepreneurs for several years. This regulation thus complements the previous possibilities of creating a study in the private ...
The core of insolvency law is the Insolvency Act (InsO), which regulates the commencement, implementation and conclusion of insolvency proceedings together with other laws. Insolvency is basically an acute ...
While only a mitigation of the penalty according to § 46b paragraph 1 of the Criminal Code (StGB) can be considered for acts under the Penal Code, § 371 AO contains a personal reason for the suspension of the sentence. If the actual characteristics are present ...
In principle, the competent insolvency court only initiates insolvency proceedings on request, the so-called insolvency petition. This is an application procedure, which in turn means that no ...
The insolvency court may only initiate insolvency proceedings if there is a legal reason for opening the proceedings. According to §§ 17 to 19 InsO, the introduction takes place either in the case of already occurred or imminent ...
If the insolvency court decides to open the insolvency proceedings, the so-called insolvency estate will be distributed in the further course. The debtor's assets are thereby converted into ...
The general criminal law provisions apply to criminal tax proceedings, in particular in the Penal Code (StGB). Especially in the case of tax evasion, it is therefore between original criminality and ...
The fact of tax evasion is one of the most important and practically relevant in German criminal tax law. In 2021, for example – according to the BMF monthly report for October 2022 – nationwide ...
Revenue concealed by the taxpayer within the meaning of §§ 8 (1) and 18 EStG | EUR 30,000
The tax investigation (Steufa) is the “criminal police of the financial authorities” and works closely with the fine and criminal courts. According to the Tax Code and the Common Instructions for Criminal and ...
Of these, according to § 3 no. 40 letter c EStG 40 % are tax-free | (-) EUR 200,000
If you want to split a GmbH with two or more subsidiaries and bring it into a holding company, you have a choice in the order. Either you split the GmbH first and then bring the companies into the new ...
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
The company civil law (GbR) is a fully-fledged partnership, but it is comparatively simple and with few bureaucratic challenges to set up. For tax purposes, it usually provides a ...
The criminal tax proceeding is a proceeding before the law enforcement authorities and courts which concerns a tax offence within the meaning of the Tax Code (AO). At the same time, § 385 (1) AO refers to the ...
If you set up a family foundation in Liechtenstein to avoid the removal tax, then you must also make sure that the future profits of the Deutsche GmbH are not subject to capital gains tax. Because the ...
Under certain conditions, regulated in the AO, the tax office may estimate the tax bases. In doing so, however, it must observe all the applicable principles, in particular regarding the uniformity of taxation ...
Capital transfers through inheritance and inheritance are subject to inheritance and gift tax with their entire value. However, as the judgment of the Bundesfinanzhof (BFH) of 23.11.2022 (II R 37/19) ...
The term so-called partial operation is mentioned in various laws, but without being legally defined by the legislature. In particular, the Income and Trade Tax Act (EStG/GewStG) and the ...
The company civil law (GbR) is one of the most widespread forms of partnership (co-entrepreneurship). It is to a certain extent the "base company", for the foundation of which already an oral ...
While the shareholders are “only” owners of a GmbH, the managing director is responsible for more operational activities. Decisions concerning the assets and development of the company shall ...
Exit tax can be avoided in several ways, including through an atypically silent society. The atypically silent company GmbH helps shareholders to ensure that their participation in a company ...
Taxpayers who reduce taxes or receive unjustified tax refunds may in particular be prosecuted for tax evasion pursuant to § 370 AO. In the criminal tax proceedings, the general ...
In addition to numerous subsidies for electric vehicles, the government also supports the optimization of residential buildings with comprehensive measures. One of the main ones is the tax reduction for energy renovations ...
Digitalization has reached and permeated all areas of the economy in Germany. So it is no wonder that they are also an indispensable part of our daily work in the tax consulting industry.
Several undertakings may be linked by contractual links. The classic here is the organization according to the KStG, regulated in §§ 14 to 19 of the Corporate Tax Act. All of them will...
In study and especially in practice, the liquidation of corporations (especially in corporations) plays a role again and again. Because a once existing corporation does not simply resolve in the ...
You may think of the term tax deposit account as a “classic booking account”, as it appears, for example, in the standard account framework (SKR) – but far from it. Because the tax deposit account in the ...
Partnerships such as GbR, OHG and KG are subject to taxation according to the so-called transparency principle. According to § 15 (1) sentence 1 no. 2 EStG, a prerequisite is that a co-entrepreneurship exists. The respective ...
Half a tax rate is colloquially referred to as a one-time tax break, the entrepreneurs from the age of 55. can receive the age of life when they sell or abandon their business. On this ...
Level | Total Hand | Partner A (Sonder-BV) | Partner B (Sonder-BV)
Due to the all-phase net principle of the VAT system directive, the sales tax (respective VAT) should always burden the last, private customer. The end consumer thus pays the tax on the entire ...
24. August 2021 | Pre-inheritance and post-inheritance: inheritance tax treatment § 6 ErbStG
The VAT deduction is subject to certain conditions under the Sales Tax Act (UStG). Entrepreneurs can sometimes only partially deduct the sales tax charged by other entrepreneurs. Change in the ...
Entrepreneurs can obtain economic goods and services either for the business or their private assets. In the VAT law is additionally between the entrepreneur on the one hand and the ...
Profit distributions between corporations are widespread in practice. However, their tax treatment is sometimes quite complex. Although in German tax law, in principle a tax exemption applies to ...
Brandis, Peter/Heuermann, Bernd | Income Tax Law, EStG Commentary, 162. 2022 edition, Munich (quote: Brandis/Heuermann – Brandis),
SEStEG | Law on tax accompanying measures for the introduction of the European company and the amendment of further tax legislation
What is the taxable income in income tax is the so-called remuneration in sales tax. This is the basis of the VAT. If the fee is fixed, only the ...
Once the final tax amount resulting from Sections 10 and 12 of the UStG has been determined, the question of the origin of the sales tax finally arises. It results from § 13 UStG, each in connection with ...
In addition to the amount and origin of the tax, the tax liability mechanism also plays a decisive role in sales tax law. Sections 13a and 13b of the UStG regulate which natural or legal person receives the open tax amount.
In the case of limited partnerships (KGs), only one shareholder (complementary) is liable with his entire assets. In the case of limited partners, liability is limited to the (parent) contribution. The accompanying ...
The over-profit tax is a potential tax that is currently undergoing political discourse because many factors are currently in conjunction with each other. On the one hand, many companies benefit from the energy industry ...
Property type according to § 181 BewG | Previous real estate interest rate (until 31.12.2022) | Future real estate interest rate (from 01.01.2023)
Deliveries and other services are only subject to VAT if they are provided by an entrepreneur. Also in the case of intra-Community acquisition according to § 1a UStG, the legislature is based on this condition ...
Pursuant to § 1 (1) no. 1 UStG, deliveries and other services are only subject to sales tax insofar as the place of performance is located in Germany. The same applies to intra-Community acquisition according to § 1a UStG. At the place of performance ...
Immediately after the basic controllability of a transaction, it is necessary to check its VAT liability. Because only if a turnover does not fall under any of the tax exemptions according to § 4 UStG, it is the ...
The VAT to be paid is determined by applying the respective applicable VAT rate to the tax base according to § 10 UStG. The VAT Act distinguishes between a total of three tax rates ...
A free transfer of business leads in principle to the fictitious abandonment of the business activity (§ 16(3) EStG) and thus triggers a taxation of existing hidden reserves. The legislator...
23. April 2021 | Buy company shares – write off purchase price in supplementary balance sheet
In VAT law, a decisive distinction must be made between deliveries and other services. The existence of this is a prerequisite for sales taxability – i.e. the basic application of ...
An operating split arises if there is a material and personnel link between the operating assets of a GmbH and the private assets of the shareholder behind it. Especially the dissolution of ...
Intra-Community acquisitions are characterised by a number of special features, including the tax liability mechanism. Because this is basically the recipient of the delivery, while the sender a tax-free ...
The acquisition of a car by the entrepreneur has advantages, but also disadvantages. The latter consist mainly in the taxation of private use and a subsequent sales profit. Leave with a car rental between spouses ...
Exchange operations are subject to taxation if the respective hidden reserves lead to a profit. In order to avoid adverse consequences for private individuals and entrepreneurs, § 6 (5) EStG ...
The tax code (AO) regulates the entire tax procedure and thus constitutes a “Basic Tax Act”. Because without knowing the most important contents and the structure of the tax code, you know which income (for example ...)
The tax code (AO) is the “Fundamental Tax Act” and regulates the entire administrative procedure – from the submission of a tax declaration to the determination and collection of the tax up to the enforcement. However, they have ...
Due to numerous regulations in individual tax law (EStG, UStG, GewStG), the tax authorities are entitled to a wide variety of tax revenues. But the pure claim is useless if there is no clarity about its assertion to the ...
Pure rental activities are – as well as the capital investment – to be assigned to the private sphere of life of a taxpayer (for example via § 21 EStG). If the taxpayer leases the asset to a ...
Tax notices and other administrative acts of the tax authorities oblige the participant to perform a specific act, toleration or omission. Regularly, the payment of the tax due is the focus, for example after remission ...
Sales tax is an important focus in almost all training and study courses in tax law. At the same time, VAT issues play an important role in law firm practice. Let's see...
If the tax code (AO) – the “Fundamental Tax Act” – were a feature film, the administrative acts could undoubtedly be described as the most important protagonists. The classification of an official letter as an administrative act resolves ...
Once the fixing period has expired, the so-called limitation period occurs. Issuance of tax notices and their amendment are then excluded for the respective assessment periods. We show what the...
Basic decision (§ 181 (1) sentence 1 AO) | Determination of default surcharges (§ 240 (1) AO)
In principle, §§ 43 to 46 AO already regulate in detail who is liable for tax under which conditions. In certain cases, for example when transferring holdings to another person ...
Uniform deadlines for all taxpayers, for example for the submission of the objection, are already indispensable in the administrative procedure due to the constitutional prohibition of discrimination. However, it comes in the ...
The income of a partnership (GbR, OHG, KG) must be regularly determined separately and uniformly. Since there are – unlike a regular assessment for income tax – several participants ...
The sale of a share of a co-entrepreneur is – like its task – subject to taxation according to § 16 EStG. In addition, the legislature regulates in § 16 paragraph 3 EStG the real division of a co-entrepreneurship. We're looking at...
Income tax and corporate income tax are based on the taxable income of the person concerned. This is laid down in § 2 (5) sentence 1 EStG and § 7 (1) KStG. In the Trade Tax Act (GewStG) there is also a ...
Business enterprises bring enormous added value to cities and communities alike. At the same time, however, they also create additional burdens, for example due to the necessary infrastructure. The trade tax should give the municipalities a ...
You calculate the trade tax or the trade tax measurement amount on the basis of the tax profit according to § 15 EStG. In the case of corporations, the income within the meaning of § 7 (1) KStG is decisive. For tax ...
The trade tax, which is due to the municipalities according to § 1 GewStG, is determined according to a fixed scheme and on the basis of the income tax profit. We present the calculation of the trade tax on the basis of a practical case. For this purpose ...
According to § 1 GewStG, the trade tax is due to the respective municipality in which the business is carried out. Special features arise as a result if a commercially active company has establishments in several ...
The rental of real estate leads to a taxation at the personal tax rate of the landlords. You can expect an income tax of up to about 50%. Therefore, in our article we examine the question of whether ...
If you want to voluntarily terminate a GmbH, you have to consider many aspects. On the one hand, the liquidation of a GmbH is linked to various corporate law issues. On the other hand, there are many ...
BFH/NV | Collection of decisions of the Bundesfinanzhof (BFH), which are not published in the official collection of the BFH
Typical again, or not? Atypical and typical silent participations are special forms of classic participation in a co-entrepreneurship. For outsiders, it is usually impossible to keep quiet ...
A double-storey co-entrepreneurship exists if a parent company (OG) is involved in a sub-company (UG, not to be confused with the entrepreneur company as "1-€-GmbH"). There may be several ...
With numerous resolutions – including the one of 31.05.1990 (2 BvL 12, 13/88) – the Federal Constitutional Court (BVerfG) has taken a stand on the prohibition of excessive amounts in tax law. Such over-taxation is then regularly ...
From previous years existing loss (separately established as at 31.12.2022) | EUR 1.100.000
It is all very well that the trade tax is relevant for companies within the meaning of § 15 EStG – But who actually pays the final tax amount to the municipality? Let’s take a look at § 5 GewStG today, the ...
The departure abroad regularly triggers the so-called exit tax according to § 6 AStG for GmbH shareholders. The background to this regulation is that the German Treasury has the right to tax on a subsequent sales profit.
In addition to income, corporate and sales tax, commercial companies are also regularly subject to business tax. Here, the legislator focuses on the "commerciality" of the company, but works at the same time ...
Brexit-StBG | Law on tax and other accompanying regulations for the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union
The conversion tax law (UmwStG) regulates the tax treatment of conversion operations according to the conversion law (UmwG). Practically relevant here is in particular the contribution to a partnership, for example ...
This time we discuss an interesting tax design for Intellectual Property in Malta. As a basic premise, we assume that a smart person has a business idea in which immaterial ...
Corporations and in particular corporations such as the GmbH can form various reserves. The profit reserve is one of the most prominent representatives. It contains profits that the corporation does not ...
In the case of partnerships, the entrepreneurs involved in them often pay the top tax rate. With the holding company, there is a way to reduce taxes by almost half. So who for his or her...
The civil structuring and tax peculiarities of holding companies are the focus of the following considerations. On the one hand, it is about the many possibilities and ...
20.02.1979 | C-120/78 Rewe/Bundesmonopolverwaltung für Branntwein | Coll. 1979, 649
Since August 1, 2022, it is possible to found a GmbH online. For this purpose, there is a procedure in which online certificates and certifications are carried out. In addition, this method can also be applied to other processes ...
7. December 2022 | Tax Clauses for the GmbH purchase: Regulations for auditing (this contribution)
Disguised distributions of profits made by a foreign company from its subsidiary may be subject to additional taxation by a domestic shareholder. This may also apply ...
26. June 2020 | Competition ban for GmbH shareholders – legal perspective
We want to investigate whether it makes sense to have a bank account or securities account abroad. There may have been many different reasons for this, especially in the past. This is how you used to...
The new amendments to Section 376 AO tighten the prosecution of tax crimes. These can also make it more difficult for self-disclosure to take place. In addition, it affects the alternatives for action in the accusation of ...
For some time now, the company car privilege has been the focus of public debate. Indeed, the discussion goes hand in hand with a redistribution debate. On the one hand, the criticism is that the company car privilege is unfair ...
Britain has with King Charles III. A new monarch. He now succeeds his recently deceased mother, Queen Elizabeth II, on the throne. He also inherits his wealth. Inheritance in ...
The Inheritance and Gift Tax Act (ErbStG) regulates the taxation of capital transfers due to and through donation. Companies receive special advantages which are specified in §§ 13a to 13c ErbStG.
Inheritances and gifts among living people are subject to inheritance tax according to the Inheritance and Gift Tax Act (ErbStG). It is between 7% and 50%, the actual level of the tax rate after ...
With the other income according to § 22 of the Income Tax Act (EStG), the legislature has created some kind of catch-up. Because other income can only be present if salaries and benefits are not ...
The comparative valuation method is one of a total of three statutory valuation procedures for built-up land. It is one of the simplest procedures, as you do not make complex calculations, but ...
The assessment procedure in the valuation law is regulated in § 151 Ratingsgesetz (BewG). The standard finally specifies in which cases and for which purposes a separate determination of tax bases ...
Within the framework of §§ 33 further following EStG, certain costs are deductible as exceptional charges if they necessarily accrue to a taxable person. You will thus find consideration in the tariff and reduce - how ...
There are situations in which a GbR makes no profits, but still has to pay business tax under the tax laws. Such a special case exists if it is at a profit in the special assets of a ...
As part of the special expenses, taxable persons may claim tax on certain costs, in particular insurance contributions. The legislature makes in § 10 paragraph 1 sentence 1 income tax law (EStG) directly clear ...
Between 26 October 2022 and 31 December 2022 As of December 2024, employers can pay their employees up to EUR 3,000 tax-free (inflation compensation premium). As the name implies, the legislature has the rule ...
There are various valuation simplification procedures for the valuation of inventories in the balance sheets, especially of manufacturing companies. They are expressly permitted in commercial law. There are three approaches to this...
With a family foundation you can design many aspects. On the one hand, a foundation is able to protect the assets and financially support the following generations through the income from the assets ...
Entrepreneurial success is only ensured by effective compliance. In addition to risk avoidance, it is above all about gaining and maintaining the trust of shareholders, customers and business partners. Therefore ...
20. January 2022 | Tax optimizations at the GmbH: Incongruent profit distributions are not misuse of design
2. April 2021 | Individual companies and partnerships tax-neutral according to § 6 Abs. 3 EStG transferred
20. January 2022 | Tax optimizations at the GmbH: Incongruent profit distributions are not misuse of design
12. December 2019 | https://www.meyers-partner.ch/expert knowledge/taxation properties/family foundation/
12. December 2019 | Family Foundation for Real Estate Assets: Secure Tax Benefits Now!
11. September 2020 | Change of form of a GmbH into a partnership – Basis – Admissibility – Prerequisite
9. October 2020 | Company selling without taxes? Three options that bring you closer to your goal
29 January 2019 | Bitcoins & Cryptocurrencies: Moving Abroad Enables Tax-Free Sale
21. December 2015 | The profit transfer agreement as a prerequisite for the income tax organization
13. October 2021 | Flat rate tax and lower tax rate with increasing income: Save taxes in Switzerland!
09. October 2020 | Company selling without taxes? Three options that bring you closer to your goal
25. February 2021 | Tax assessment & tax collection at the German tax easing
25. February 2021 | Tax assessment & tax collection at the German tax easing
If you start thinking about leaving Germany, then the question of where to emigrate is of considerable importance. After all, you usually want to at least maintain the current standard of living ...
30. December 2021 | Spain and its tax law: An overview of tax types
19 October 2018 | The appendix to the annual accounts: what information is included?
12. January 2022 | Sell OHG with real estate to holding company and take advantage of tax advantages
Self-created intangible assets of the fixed assets are subject to special valuation requirements in the Commercial Code. They have a special status because they have the right to activate. So ...
27. July 2022 | Set up a branch – these 5 points you should consider
27. July 2022 | Set up a branch – these 5 points you should consider
29 July 2022 | Franchise as an alternative to branch and subsidiary
The cost method is one of two methods that can be used for profit and loss. The cost method is designed to perform the calculation on the basis of cost types. For this ...
The valuation rules for subsequent valuation distinguish between scheduled and unscheduled depreciation. In some circumstances, a write-down may also be necessary. In addition, you have to...
The notes to the financial statements constitute an important source of information on the financial and economic situation of an undertaking. It contains a variety of details, most of which are based on legal ...
In order to prepare the annual financial statements, accounting entities must make a profit and loss statement. You can choose one of two legally proposed methods. One of them is the...
Although the management report is not an integral part of the annual accounts, it is a legally specific supplement to it. The Commercial Code only requires medium-sized and large accounting companies to ...
27. October 2020 | Buy electric cars: up to EUR 9,000 environmental bonus – tax-free
13. November 2018 | Legalbird: Investment of CHECK24 Ventures and tax consultancy of Kanzlei Meyers & Partner AG
Dr. Gersch, Eva-Maria Prof. Dr. Jäger, Markus Rätke, Bernd Dr. Ratschow, Eckart Rüsken, Reinhart Prof. Dr. Werth, Franceska | AOabgabeordnung von Klein, Kommentar, 15. Edition 2020 (quoted as small/worker, § Rn.)
Breithaupt, Joachim Ottersbach, Jörg H. | Compendium Corporate Law 1. Condition 2010
Beyme Simon | Exemption of a GmbH liquidator from the prohibition of self-contracting, Zeitschrift, NWB, Nr. 6, v. 07.02.2020, p. 406, (quoted: Beyme, exemption of a GmbH liquidator from the prohibition of self-contracting, Zeitschrift ...)
31. December 2018 | Additional taxation: Recognition – Avoidance – Designing with example
The basics of accounting in commercial law have a high priority for the determination of taxes. But also in other contexts, the understanding of the basics of accounting in commercial law is ...
31. December 2018 | Additional taxation: Recognition – Avoidance – Designing with example
4. October 2021 | Deadlines for tax returns: Is a change subsequently possible? >
30. October 2020 | Avoid travel tax: set up a family foundation and transfer GmbH shares
The Federal Constitutional Court has considered the bed tax to be constitutional. The bed tax is levied on paid overnight stays in accommodation establishments in Hamburg, Bremen and Freiburg, among others, and ...
21. August 2019 | Settlement of a GmbH shareholder: Settlement clauses vs. Law
If a partnership partner has acted against the will of another, this has no significance in external relations with the third party. Rather, the partnership is effectively obliged. The other partner is liable ...
Partnerships cannot act legally themselves, but must be represented. Then the question arises as to how the representation of the partnership is legally possible and works. This and what...
8. September 2019 | Advice for GmbH managing directors: Avoid liability in case of insolvency
17. January 2020 | GmbH shareholders: Managing Director salary or profit distribution?
9. November 2018 | Share deal at the GmbH: 3 designs for tax optimization
Cum/Cum transactions result in a limited taxpayer being able to offset capital gains tax paid in Germany. The Federal Ministry of Finance (BMF) has issued a new BMF letter in which the ...
8. July 2021 | Repayment of hidden profit distribution – tax treatment
10. February 2021 | Property swing – transferring assets to spouses without gift tax
4. May 2021 | Empowerment needs test and save inheritance tax
Sales tax is particularly difficult to determine for cross-border payments. Then it seems questionable which countries can all tax. However, it becomes completely problematic when three entrepreneurs are involved, all of whom ...
01. June 2022 | Agreement entitlement of partnerships – application of a DTA (this contribution)
Aid is a measure which, by doing or not doing so, reduces the burden which an undertaking actually has to bear. Consequently, aid is present when a hypothetical private investor ...
The withholding tax is levied on certain income from capital assets. An outflow of the withholding tax is the savings lump sum of § 20 IX EStG. Therefore, instead of the actual advertising costs, 801 € and ...
16. September 2020 | Valuation of old construction properties in the case of inheritance tax and gift tax
When the proceedings are suspended, the financial proceedings stop in tax disputes. The suspension of proceedings in financial disputes is regulated both in § 363 AO and in § 74 FGO. We explain what the...
27. October 2018 | License barrier according to § 4j EStG: Simply explained with example and graphic
21. August 2019 | Settlement of a GmbH shareholder: Settlement clauses vs. Law
Freelancers have been able to form a partnership since 1995. We explain how you can start such a company and what characteristics and advantages it has.
6. August 2021 | Loss of deposit at a GmbH: Tax treatment § 17 EStG
23. December 2021 | Real estate sale after divorce or with separated spouses – Attention tax trap!
The Regional Court of Munich I recently found that the 2017 and 2018 financial statements of Wirecard AG are null and void. This also includes the already made profit distributions and bonus payments to ...
The social contract is the basis for the establishment of a company. It also serves to avoid legal problems within society. The articles of association must, in the case of the individual legal forms ...
18. October 2021 | Employee participation at startups: Analysis of legal measures
Against tax court decisions that are neither judgments nor court decisions, the parties and otherwise affected are entitled to the complaint according to § 128 FGO. We explain their admission requirements and what you ...
The withholding tax is retained for income from capital assets by the body paying out the capital income and paid to the tax office. The withholding tax is a special form of collection of ...
The supplementary invoice is a tax corrective measure that applies in certain cases to partnerships. It ensures that the cost of acquiring shares in a ...
A GmbH with shares offers a significant tax advantage when trading growth shares. Because there are very low taxes at the level of society. This then leads to the ...
The Modernization Act for partnerships (MoPeG) introduces a series of legal changes to the company civil law (GbR). They should be valid from 2024. The approximation of ...
International transfer prices must be documented in Germany. However, transfer pricing documentation must first be submitted on the basis of a request from an auditor. However, here ...
According to § 105 (1) HGB, the open commercial company (OHG) is a partnership whose purpose is aimed at the operation of a commercial trade under a joint company. All partners are liable ...
According to § 115 (1) FGO, the final complaint is an appeal against judgments and court decisions of the tax courts. The appeal must be directed against other decisions of the tax courts.
The revision to the Bundesfinanzhof is subject to approval. If, however, the appeal has not been admitted, the appellant is entitled to appeal against non-admission. We explain their requirements, the deadlines and how the ...
As the highest national court, the Federal Constitutional Court also decides on tax disputes. The constitutional complaint is one way to obtain the decision of the Federal Constitutional Court. We ...
In the course of ongoing litigation, any court may submit a relevant legal rule that the court considers unconstitutional to the Federal Constitutional Court for decision. Therefore, the financial courts and ...
28. April 2022 | Property value procedure: Valuation methodology in real estate tax law (this contribution)
27. April 2022 | Comparative value method: Valuation method in real estate tax law (this contribution)
26. April 2022 | Income value method: Common valuation method for real estate (this contribution)
25. April 2022 | Valuation methods in real estate tax law: Details and background (this article)
8. September 2019 | Advice for GmbH managing directors: Avoid liability in case of insolvency
Online merchants based in the EU who sell goods to other EU member states via Amazon or other online market operators can use the one-stop shop (OSS) procedure for VAT return. Here's where the...
Since 01.07.2021, the OSS procedure in the area of e-commerce has introduced new VAT regulations. Retailers who sell their goods via their own online shop must distinguish three cases. They sell goods...
If the tax limitation occurs, the tax office cannot make any changes to a tax notice. For the statute of limitations, the following questions arise: When does the statute of limitations begin, how long does it take until it occurs ...
Understanding procedures are intergovernmental negotiations enshrined in international tax law, which are intended to eliminate double taxation despite the application of a double taxation agreement. This is always about ...
When a shareholder dies, the question arises as to what actually happens to the partnership. We clarify the legal consequences and how you can cleverly regulate the legal succession in the company share.
Nonprofit corporations receive various tax benefits and their donors and members can also claim tax benefits. But when is public charity actually available, which problem areas are there ...
§ 10b (1) EStG allows the deduction of grants for the promotion of tax-advantaged purposes. Tax-advantaged purposes are charitable purposes within the meaning of §§ 52-54 AO. In the case of grants to such organisations ...
Do you want to start a GmbH? Then of course you have to know which characteristics actually characterize the GmbH. We explain what a GmbH actually is, how it is structured and what structural features it has.
The commercial register is the public register of all commercial enterprises. Various legal processes in a company must be entered in the commercial register. But in the entries can also be mistakes ...
The Prokura is a legally granted representative power with a legally defined scope. We clarify what this actually means, how you can grant Prokura and how you differ from other forms of representation ...
22. April 2021 | Option model for corporate tax for OHG & KG – new law
24. July 2019 | Saving inheritance tax through chain gifting: deadlines and criteria
The EU Double Taxation Agreement Dispute Settlement Act (EU-DBA-SBG) is a national legal basis with which one can apply an agreement procedure for double taxation in another EU member state.
The agreement procedure with regard to the EU Arbitration Convention is exclusively concerned with eliminating double taxation linked to transfer pricing. In addition, only cases in which ...
25. March 2022 | Calculate the new property tax: example of the general property tax law (this contribution)
8. August 2019 | The levy on trade tax: meaning – calculation and examples
Tax advances are earmarked for various taxes. In particular, income tax, corporation tax, property tax and business tax are associated with advance tax payments. Also, entrepreneurs know ...
21. December 2015 | The profit transfer agreement as a prerequisite for the income tax organization
10. May 2021 | Registered association: advantages over non-registered associations
EU State aid law is still relatively recent law within the Union. As part of competition law, it plays an important role for state subsidies that disrupt the balance of the internal market ...
21. September 2021 | Separate determination according to § 180 AO: Requirements and legal consequences
25. February 2021 | Tax assessment & tax collection at the German tax easing
28. April 2021 | IFRS as a Standard for Accounting – Benefits in Profit Optimization
The EU Mutual Assistance Directive will continue to be extended. As a result, European authorities are obliged to exchange information among themselves. However, the question arises when and to what extent a restriction of ...
Free ports, free zones, free warehouses and free trade zones can be regarded as foreign territories in a fiscal sense. By identifying such zones, many countries want to achieve that there is a duty- and tax-free ...
In this post, we look at the impact of EU law on DTA and additional taxation. Because the fundamental freedoms should give taxpayers from the EU and EEA countries a right to certain freedoms ...
The Anti Tax Avoidance Directive introduced a new directive by the EU. This directive, like many previous directives, does not have the effect of realising freedom, but rather of restricting freedom. What this is and what...
29 January 2019 | Bitcoins & Cryptocurrencies: Moving Abroad Enables Tax-Free Sale
In this article, we look at the Dispute Settlement Directive in addition to the procedures under the DTA and EU-SchÜ. This concerns the interpretation of tax disputes. This procedure is intended to ensure an effective and efficient ...
21. February 2022 | The Transparency Register for Beneficiaries in Germany from 2022
21. February 2022 | The Transparency Register for Beneficiaries in Germany from 2022
21. February 2022 | The Transparency Register for Beneficiaries in Germany from 2022
21. February 2022 | The Transparency Register for Beneficiaries in Germany from 2022 (this contribution)
5. October 2021 | Financial benefits: employer’s obligation to pay?
08. October 2021 | Establishment in Spain: only 25% tax for German partnerships
If you set up a holding company, you are certainly looking forward to the first profit distribution that it will receive from its subsidiaries. But a little patience is needed. Because if you...
30. December 2021 | Spain and its tax law: An overview of tax types
From 2025, the determination of property tax in Lower Saxony is to be based on the so-called area-location model. Lower Saxony, as one of seven federal states, is thus also proposing its own way to tax real estate ...
11. February 2022 | Property tax in the Hanseatic City of Hamburg from 2025 (this contribution)
With the opening clause, which the legislature recently introduced as part of the property tax reform, the federal states have the possibility to regulate the collection of property tax according to their own provisions. This approach is now also ...
For so-called large acquisitions (acquisition over EUR 26,000,000), you can make use of the protection requirements test (§ 28a ErbStG) under certain conditions. For this purpose, it is determined to what extent the pro rata ...
The property tax reform in Germany makes it possible through an opening clause that the federal states can enact their own alternatives to the property tax law. On the federal states, the own requirements for the collection of property tax ...
The Saarland provides for a different collection of property tax in its territory from federal law. However, this is exclusively concerned with adaptations to the control measurement numbers provided for different evaluation objects. Because ...
04. February 2022 | Property tax in Baden-Württemberg from 2025 (this contribution)
The current property tax reform has led to Bavaria, among other things, adopting its own law for the future collection of property tax. Its first application is scheduled for 2025. In doing so, the ...
International supply chains in which more than one own company generates profits must be considered tax differentiated. For this purpose, international transfer prices are determined. In this context, a number of ...
German dual income tax law makes a fundamental distinction between profit income and surplus income. Nevertheless, certain capital gains achieved in private assets are subject to a so-called ...
10. June 2021 | Zebra company: Requalification of the income of shareholders of a partnership
As a result of the Wirecard scandal, the Financial Market Integrity Act (FISG for short) was promulgated on 25 June 2020. This is primarily intended to cover gaps in the supervision by the Federal Financial Supervisory Authority (BaFin).
2. December 2020 | Tax evasion and self-reporting – easily explained and solved
The collective term Mergers & Acquisitions, which comes from the Anglo-Saxon-speaking world, describes all transactions with which companies bring about a change in their entrepreneurial characteristics. In addition to the on and ...
In cases of departure and de-entangling, the fundamental freedoms of the EU must be respected. There are always disputes between Member States as to which Member State is allowed to tax. This can be for the ...
2. November 2021 | Private sale business after donation: How to save taxes!
6. December 2019 | Profit distribution from a GmbH: The advantages of the parts income process
16. August 2019 | 5 tax advantages of the GmbH: current profit – dividends – disposal – real estate – salary
10. November 2020 | GmbH Managing Director Liability: Duty of Care Damage & Liability Risks
If you own a holding company with a successful operating subsidiary and want to invest in real estate, there is a favorable design to make a long-term profit carry forward tax-free from the holding company.
Corporate tax law and the EU’s fundamental freedoms must take account of their special relationship. This is particularly the case in cross-border cases, especially within the European Union, but also ...
29 January 2019 | Bitcoins & Cryptocurrencies: Moving Abroad Enables Tax-Free Sale
23. August 2018 | GmbH loss carry forwards: § 8c KStG unconstitutional -> objection & deadline
22. July 2020 | Functional relocation and functional doubling in International Tax Law
Since the previous property tax was unconstitutional, the legislature had to work out a property tax reform. There were two alternatives. On the one hand, a value-independent and on the other hand, the previous ...
So far, the share deal was considered an excellent way to buy real estate largely without real estate acquisition tax. But now the legislature has to 01.07.2021 the real estate transfer tax law in this respect ...
14. September 2021 | AWV Reports on PayPal Payments: This must be considered
28. May 2021 | Capital gain: Skillfully use preferential tariff treatment according to § 34 EStG and save taxes
23. December 2019 | Tax treatment of real estate in company assets
17. March 2021 | Gift of assets to nieces or nephews – Optimize gift tax
1. March 2021 | Acquire and renovate protected property – 6 tax benefits
05. June 2020 | Anti-Tax Avoidance Directive (ATAD): Critical analysis of early taxation in cases of departure and tax easing
1. October 2021 | 2022 comes the new exit tax – what changes does it bring?
10. February 2021 | Property Swing – Transfer assets to spouses without gift tax
23. August 2018 | GmbH loss carry forwards: § 8c KStG unconstitutional -> objection & deadline
04. June 2020 | The Merger Directive and the EU’s Freedom of Establishment & Capital Movement
If you want to buy real estate from private, there are opportunities right at the beginning to save taxes later. This already applies to the first own property. So you should already pay attention to the purchase contract that you ...
Tax notices are issued as an administrative act. This does not mean, however, that this also entails an official clarification of the facts. The tax ruling is now rather based on the information of the ...
The remuneration for lawyers is regulated in the Lawyers’ Remuneration Act (RVG). Since 1.10.2021 there have been important changes by the law for the promotion of consumer-friendly offers in the legal services market ...
Distributions by a limited liability company to another limited liability company may be treated as 95 % tax-free pursuant to § 8b (1) sentence 1 KStG. This is the case if it is a dividend and the ...
Cross-border insolvency challenges pose many problems. The attempt at harmonization at European level by the EuInsVO did not contribute to more clarification. Therefore, there are also many ECJ rulings ...
22. September 2021 | Capital levy to Corona – in what form could it come?
By deducting your tuition costs, you can either recover taxes already paid or carry over to the next year by carrying forward losses. Here it is important that your studies are not as a first degree ...
There is a possibility how a GmbH shareholder-managing director can also use a company car for private purposes without incurring taxes. She sees a leasing of the company car within the framework of a ...
17. September 2018 | Tax evasion: Risk penalty intent offender statute of limitations display
Employees often take up vocational training and further education. However, further education and training costs a lot of time and money. Therefore, the employer can cover and reimburse the costs. There are ...
The second management position law (FüPoG II) contains a quota of women for the boards of certain companies and the obligation to determine a target for boards of directors and supervisory boards not included. Furthermore, ...
You and your business partner both agree that the GmbH from which you purchased shares is liquid. In retrospect, however, it may turn out that the balance sheets have errors. Then ask ...
17. September 2018 | Tax evasion: Risk penalty intent offender statute of limitations display
22. May 2019 | License barrier § 4j EStG: Requirements/ Legal consequences/ IP-Box/ BEPS
The Bundesfinanzhof (BFH) has decided that a monetary donation can be deductible, even if it was shown as a donation in kind. In the specific case, there was also the problem that the money did not go to the ...
As part of the tax investigation, it happens that the tax investigator searches the premises of the accused. During the search, however, the accused has rights and can also save himself from making mistakes. We ...
The rental of real estate with sales tax allows the input tax deduction of the landlords. This allows landlords to get the sales tax incurred on the construction of the property refunded via the input tax deduction. Thus, a ...
Many entrepreneurs were granted an immediate corona assistance of €9,000 in the spring of 2020 as a result of the corona pandemic. If it turns out that the aid was not needed, it must be repaid. Then ask ...
As a result of the Corona pandemic, many cultural institutions in particular had to install an extensive streaming offer on their websites instead of face-to-face events. Often remuneration is paid to foreign ...
23. August 2018 | GmbH loss carry forwards: § 8c KStG unconstitutional -> objection & deadline
08. July 2020 | Gain in receivables for conversions: blocking period according to § 6 Abs. 3 UmwStG
The Handelsblatt published an article in September 2021 about the tax models of the rich in Germany. In his research, he also referred to articles that we have written in the past on this topic.
29 January 2020 | Avoid real estate transfer tax: tax-free real estate transferred to partnership!
The tax deduction according to § 50a EStG within the framework of the limited tax liability was amended by the law for the modernization of the relief of deduction taxes and the certificate of capital gains tax (AbzStEntModG) of 2.6.2021 ...
Wealth always depends on many factors. Some promote its growth, while others are able to reduce it. The latter are thus risks, the assets in their substance or even in their existence ...
By selling the generated electricity to a network operator, you create a commercial activity. Thus, your installed photovoltaic system (PV system) represents operating assets. This will put you right ahead...
When it comes to buying a property for the first time, many practical aspects come to the fore. In particular, there are three ways to track down properties for sale. On the one hand, these are the...
20. May 2020 | Tax neutral/ cross-border contribution to corporations
30. November 2020 | Taxation of phantom shares when selling a company
Often, the insolvency administrator challenges legal transactions that have been carried out by insolvent companies. This legal act is called insolvency challenge. It is very important in practice. In general, a ...
Tax relief for higher income compared to low-income earners? In Germany this is unthinkable. In Switzerland, on the other hand, such a model was introduced at short notice in the Canton of Obwalden in 2015. In addition, there are ...
There are cases where it makes sense to merge two legally competent foundations. This process is called gain. Since the increase is only regulated to a small extent by law, you should already at ...
As part of the preparation of annual financial statements, the question usually arises as to whether and, if so, to what extent provisions are to be made for outstanding invoices according to § 249 I HGB. It is regularly discussed whether ...
With an establishment in Spain, a German GmbH & Co. KG can save about 20% in taxes compared to a GmbH. Thus, the taxation of the profit of a permanent establishment in Spain is only subject to a local ...
For the first time in 2020, the Responsible Property Foundation cited a legislative proposal on the GmbH with tied assets as a new legal form, which has now been rejected. In February 2021, we will have a...
Asset-generating benefits can be received by employees, provided that they comply with the statutory regulations. There is sometimes an obligation for employers to pay this, but this ...
08. September 2021 | Audit: this is how you negotiate successfully with the tax office!
The new exit tax will apply from 2022. It applies when shareholders of corporations give up their unlimited tax liability in Germany by moving abroad. There are some...
The method article Art. 23A OECD regulates the exemption method under the double taxation agreements (DTAs) as a possibility for preventing double taxation. This is also regularly elected in the German DBA ...
Recently, there has been relief for extended land shortening. Until now, it was the case that an asset management company could benefit from the extended land shortage, because as a special “tax exemption” ...
17. September 2018 | Tax evasion: risk / penalty / intent / perpetrator / statute of limitations / notification
In the super election year, there are always interesting tax projects of the different parties to observe. This year, the discourse is characterized, among other things, by planned tax increases in the income tax in the form of ...
Asset protection is about the defensive securing of assets. The focus is on averting a number of risks that can affect an asset. This includes especially taxes, for example ...
01. July 2019 | International Tax Design: Patent & Licensing Company Abroad
20. July 2021 | Wealth tax in Germany – Wealth areas Evaluation & Taxation
In principle, the tax bases according to § 157 paragraph 2 AO are determined as part of a tax assessment. In contrast, there are situations in which the tax bases are separate, i.e. in a separate ...
The transfer of business assets is in principle exempt under the inheritance tax in accordance with §§ 13a, 13b ErbStG. However, this exemption is subject to a retention period. The problem can be compliance with ...
If Germany should reactivate the property tax again, then the Family Foundation in Liechtenstein will play a special role as an option for avoidance. There are two ways to make a fortune on a...
AWV reports are about fulfilling reporting obligations to the Deutsche Bundesbank for persons who have payment transactions and capital transactions with non-residents. There are some uncertainties about...
Germany has concluded so-called double taxation agreements (DTAs) with other countries. However, they regularly have tax gaps or know Germany’s tax law. Therefore, there is so-called Treaty ...
Currently, the top tax rate in Germany is 42%. In addition to professional footballers, many other taxpayers in Germany pay him. However, for income, the EUR 274,613 (individual investment, as of 2021) ...
Similar to German commercial law, it is therefore important to present a proper picture of the assets, financial and earnings situation in IFRS. IFRSs want investors to be able to rely on the information provided in order to ...
In an audit by the tax office, there are various ways to positively influence the result. Measures can be taken at an early stage to prevent a potential audit ...
The BVerfG has finally decided: The current interest rate is unconstitutional, which is why the regulation on interest in tax law must be revised. Since such procedures at the BVerfG always take a long time ...
When realizing sales in accordance with IFRS 15, the principle of matching sales revenue with the associated expenses incurred to achieve them always prevails. So it is interesting to see how a company spends in ...
29 January 2019 | Bitcoins & Cryptocurrencies: Moving Abroad Enables Tax-Free Sale
National tax law is influenced in particular by European law and European law principles. An influence is the prohibition of tax aid under Article 107 TFEU. It provides that tax assistance ...
In IFRS, as in German commercial law, deferred taxes must be taken into account. However, these play an important role exclusively in international accounting, as many electoral rights in the ...
Influencers in Dubai who previously worked in Germany can expect tax relief in their new home country. However, this only applies if they are not taxable anywhere else. But in some cases...
A partner of a partnership may be regarded as a co-entrepreneur. The consequence of this is that according to § 15 (1) sentence 1 no. 2 EStG, he generally earns commercial income. In the co-contractor term ...
29 January 2019 | Bitcoins & Cryptocurrencies: Moving Abroad Enables Tax-Free Sale
4. May 2021 | Empowerment needs test and save inheritance tax
“European tax law” is not a tax of its own kind, such as corporate tax. Rather, this refers to supranational requirements of European law, which are necessary for the design of national law.
The asset value method is a method for valuing companies. Thus, the calculation of all individual assets and liabilities with the respective common value is in the foreground. However, it remains ...
The IDW S1 method is a method used for valuation purposes. The IDW S1 procedure only applies outside tax law. Nevertheless, it is widely used as a model for company valuation ...
With the multiplier method, there is another method for company valuation. This involves an industry-standard assessment of company key figures by means of a multiplier. This method is relatively ...
Insurance brokers can run their business in a number of legal forms. Often these are individual companies. In such a case, liability cases or the question of the takeover of the company ...
The question of what taxes are could be asked by a child. In fact, few adults know what taxes are. It's basically very simple. Taxes are cash benefits that are a subject subject to instructions – ...
When you look at the question of what taxes are, you often ask who writes the associated tax laws. In Germany, there is a legislative procedure for this. It is the responsibility of the legislative tax laws to ...
It is possible that an asset is to be accounted for both in the special business assets and in the business assets. This is called accounting competition. This can happen if they are shareholders of a ...
To determine the value of a company, there are different approaches. The company valuation method also depends heavily on its purpose. In tax law, the company valuation is simplified ...
6. August 2021 | Loss of contribution to a GmbH: Tax treatment § 17 EStG (this contribution)
Just as in Germany, you can also set up a holding company in Austria. A holding company in Austria naturally fulfils the same function as a German holding company. But it is precisely in ...
A good idea is often enough for many founders to start a startup. But even when starting startups, you should think about long-term taxes. The risks are already lurking in the question of ...
They are entrepreneurs and are entitled to deduct VAT. You have also used the input tax deduction for an asset that you use for your company. In the future, however, the use of this ...
Cities and municipalities also have to pay attention to sales tax when calculating services they provide. There are many details that play a role here. Currently, however, this matter is also out of a ...
They are entrepreneurs and use an economic asset both for private use and for their entrepreneurial purposes. Then there is a so-called mixed-use economic good. This not only results in ...
The storm event in mid-July 2021, especially in North Rhine-Westphalia and Rhineland-Palatinate as well as in parts of Bavaria, caused enormous damage. In addition to the many human lives, the floods also ...
As in many other countries worldwide, there is a wealth tax in Germany. Nevertheless, this may seem completely new to most readers who first came into contact with the Treasury after 1997. This is because ...
In this year’s Bundestag election campaign, several parties are promoting their plans for the wealth tax. Whether a renaissance of wealth tax can actually succeed, however, depends on the details with which one ...
They achieve sales tax-free sales within the meaning of § 4 UStG. Therefore, you do not pay sales tax for the goods movement due to lack of tax liability. This is of course at first glance advantageous. Nevertheless, there are cases ...
Shares in investment funds acquired in private assets before 01.01.2009 are tax-protected old shares. Because unlike those who carry a younger acquisition date, the ...
In IFRS lease accounting, there has been a serious change for lessees since 2019. Because these are now obliged to all lease contracts, apart from a few exceptions, in the balance sheet as ...
08 July 2021 | Repayment of hidden profit distribution – tax treatment (this contribution)
Professional footballers pay regular taxes as employees of a football club. Although their salary does not correspond to that of an average employee, the same tax conditions apply to them ...
11. November 2018 | Save the loss carry forwards at the GmbH: the new § 8d KStG helps!
Tax offices can use an audit to verify the tax findings or the tax returns submitted. In principle, audits are carried out in the case of conversions or restructurings, but ...
In addition to legal persons governed by private law, there are also legal persons governed by public law. This includes in particular cities and municipalities. Therefore, it is hardly surprising that they, too, as corporations ...
In tax law, it is important to know and apply the terms exactly. This also includes the distinction between allowance and exemption limit. Because this difference can already be made in the law on a small ...
When transferring a sole proprietorship to a GmbH and when transferring a GmbH to a holding company, a blocking period must be observed when selling. Because if you want to invest in the GmbH within the seven-year ...
Startups in particular tend to retain highly deserving employees via co-participation in the company. There are various models, starting with the conventional bonuses and other forms of royalties ...
Participations of a corporation in another corporation are called box holdings and regularly occur in groups of companies. For them, tax privileges can apply. Among these...
If you no longer want to continue your business, you need to think about how best to do it. Above all, you should keep an eye on the tax consequences. In particular, ...
According to § 1 Ia UStG, sales in the context of business sales are not taxable. The requirement of tax exemption is that the transactions in the context of the transfer of all the company assets or a separate ...
17. June 2021 | separation principle vs. transparency principle Consequences & designs (this article)
16. June 2021 | Trust models of large auditing firms: Gift tax relevance (this contribution)
Within the framework of the BEPS project, the OECD intends to combat harmful tax competition by states and aggressive tax planning by international corporations. As a result, the BEPS project is currently ...
Companies and individuals are more likely to donate money or assets to organisations and institutions. The donation usually serves a charitable, charitable or church purpose. In addition, donations can be...
The large highly digitalized companies (Google, Amazon, Facebook, Apple) hardly pay taxes. The reason for this is that the digital economy significantly facilitates the implementation of various tax design models. This has ...
10. June 2021 | Zebragesellschaft: Requalification of the income of shareholders of a partnership (this contribution)
The goal of the liquidation of a GmbH is the termination of the company as it has existed so far. All assets are sold, all debts are paid off and the remaining cash is transferred to the ...
In the case of partnerships, it comes in the course of an operational task, such as the real division according to § 16 para. 3 EStG in principle, for a taxation of hidden reserves. Because in the real division usually lies the ...
04. June 2021 | Investigative proceedings: When does the criminal tax proceedings run (this contribution)
The digital economy is rarely recorded and taxed in international tax law. Especially in the sales state, digital services are not or hardly taxed. This is especially due to the fact that ...
Basically, the deduction of input tax serves to ensure that the business use of goods and services is not definitively burdened with sales tax. Rather, only the end user should be burdened. Therefore ...
28. May 2021 | Profit on sale: tariff concession according to § 34 EStG (this contribution)
As a result of a change in the law, new regulations for investments in movable assets will apply from 2020. Especially with planned or urgently necessary investments, this can lead to an enormous ...
The interest rate barrier according to § 4h EStG is a regulation to avoid cross-border tax arrangements due to interest payments. In particular, payments from Germany to foreign shareholders are included ...
24. February 2021 | Rental income tax-free: Debt financing reduces profit
20. May 2021 | Reserve for the replacement in case of departure of assets (this contribution)
When buying a GmbH by a private person, either a share deal or an asset deal is considered. In an asset deal, you as a buyer can write off the purchase price for tax purposes and thus see it as a tax advantage. However, ...
Usually influencers start their activity as a hobby. But at some point a trade can emerge from it. At this point, influencers need to evaluate their reach on social media as well as their...
The valuation of shares in a cooperative can be approached in two ways. On the one hand, you can set them with the nominal value that you originally put into the cooperative as a member in order to become a member ...
According to § 11 I GmbHG, a GmbH is only created upon its registration in the commercial register. The foundation of the GmbH is usually done in sections. Nevertheless, the founders of the GmbH would like to regularly ...
The personal rights of influencers also represent a relevant value in tax terms. In this case, one enters new territory in the evaluation of personality rights of influencers in a certain respect. Finally, ...
An association is a permanent association of natural or legal persons which has joined together for a common purpose. The association can be entered in the register of associations. There are ...
If you start streaming on the well-known platforms such as Twitch and YouTube and reach the Twitch affiliate status, for example, the question quickly arises how to tax the revenue from streaming ...
4. February 2021 | Pool Agreements / Pool Contracts – Inheritance and Gift Tax
In cases where there may be tax evasion, criminal tax proceedings are regularly initiated. According to § 385 (1) AO, the general rules of the ...
In order to mitigate the negative economic consequences of the initial restrictions and business closures due to the Corona pandemic, solo self-employed, professionals and small businesses with up to ...
The Federal Government is planning a new option model for corporate tax for commercial companies. This applies in particular to open commercial companies (OHG) and limited partnerships (KG), to which the ...
Influencers generate income in different ways via their Internet presence. A commercial operation of influencers is strongly related to their personality. So their personal rights...
16. April 2021 | Foundations: Types and prerequisites for founding (this contribution)
The parent-subsidiary directive aims to avoid double taxation of cross-border profit distributions. Therefore, these dividends are basically taxed at the parent company ...
The limited partner’s liability has a tax impact on his participation in the profit and loss of the company. § 15a EStG limits the offsetting of losses for limited partners. The following ...
15. April 2021 | Self-employment: Is a loss offset possible? (this contribution)
The family cooperative is a cooperative in which members of a family make up the members. Among other things, this is intended to provide advantages in the taxation of company profits and their distribution to members.
12. April 2021 | The hidden deposit according to § 8 Abs. 3 S. 3 KStG – Avoid risks (this contribution)
The deduction of operating interest is intended to restrict the private use of the loans issued for an enterprise. This is particularly relevant for individual companies and partnerships. By § 4 Abs ...
In principle, the transfer of parts of a co-entrepreneur share with retention of special business assets (e.g. real estate) would not be tax-neutral. However, § 6 Abs. 3 S. 2 EStG under certain ...
Companies above a certain size are obliged to carry out an audit of their trade balance. This audit shall be carried out by an auditor or a publicly sworn auditor in the course of ...
14. October 2020 | Growth in partnerships: general legal succession and design possibilities
Securing company succession is the biggest entrepreneurial challenge. [1] Tax advice for sole proprietorships and partnerships often requires restructuring and ...
01. April 2021 | The design option with leased properties within the framework of the anticipated succession according to § 6 Abs. 1 No. 5 and § 7 Abs. 5 EStG (this contribution)
In principle, there is no overlap between § 6 Abs. 3 EStG and §§ 20, 24 UmwStG. Under § 6 Abs. 3 EStG excludes the free transfer of enterprises/sectors and (sector) co-entrepreneur shares. Section 20 ...
25. March 2021 | The transfer of assets according to § 6 para. 5 EStG and §§ 20 / 24 UmwStG (this contribution)
Statutory provisions determine when an audit must be carried out on the annual accounts of a company. The three criteria are balance sheet total, revenue and average number of employees in the ...
16. February 2021 | How to save the loss carry forward in the transformation of your company
With a GmbH & Co. KG, you can establish a holding company by dividing and transferring the operative business operations into a subsidiary. The transferred assets comprise the assets in the GmbH & Co. KG ...
If an aunt or uncle wants to transfer her property to a niece or nephew by donation, then the allowances are very small. At the same time, however, tax rates are also increased. Thus, in ...
To start a company in the USA, there are various forms of company to choose from. In addition to the individual company, there are partnerships, such as the General Partnership (GP) or the various forms of ...
A company newly founded in the USA – no matter what form of company it is – has a number of points to consider. One of the most important is that it needs to hire new employees in the US. For this purpose, ...
5. March 2021 | Taxes in the USA for natural persons: Tax liability & taxation
The acquisition and renovation of a listed property requires a large number of different special features. Some of these are of course due to the preservation of the architectural monument in its unmistakable construction ...
05. June 2020 | Anti-Tax Avoidance Directive (ATAD): Critical analysis of early taxation in cases of departure and tax easing
In recent years, the housing cooperative has often become the focus of interest of entrepreneurs as a legal form, with which both corporate tax and business tax can be saved. There is ...
23. August 2018 | GmbH loss carry forwards: § 8c KStG unconstitutional -> objection & deadline
The payment of licence fees is normally subject to a 15 % withholding tax. But you can reduce the withholding tax by claiming related operating expenses. The basis of assessment of ...
23. February 2021 | Management of a foundation in Liechtenstein – using organs sensibly
The property swing is a design model with which spouses can transfer assets among themselves without this triggering a gift tax. The community of gain is a prerequisite for ...
26. October 2020 | Overview of the OECD Model Agreement – OECD-MA as the basis for DTA
The distribution of profits by a subsidiary to its parent company incurs a capital gains tax of 25 %. If the parent company is a corporation or another corporation, it would have to ...
5. March 2021 | Taxes in the USA for natural persons: Tax liability & taxation
30. January 2019 | Exit taxation: Exit to the UK before Brexit is worth it!
Anyone who receives a severance payment as an employee after leaving a company usually has to tax it in Germany. Fortunately, there are ways to pay the severance payment after a departure tax-free in ...
Many entrepreneurs hold shares in more than just one GmbH. This can be the case, for example, if you run your own GmbH for each rented property. Furthermore, individual business areas can be integrated into own GmbHs ...
23. February 2021 | Management of a foundation in Liechtenstein – using organs sensibly
Many myths are about so-called tax havens or tax havens. Often these are countries with which you associate a nice, comfortable life. But above all, one thinks in these places ...
24. August 2018 | UK-Limited and Brexit: Cross-border merger helps!
The merger of a GmbH into a partnership is a prime example of the merger of a subsidiary into the parent company. Especially when designing a commercial rental, the ...
The acquisition of the Porsche company by the VW Group in 2012 would normally have incurred EUR 1.5 billion in taxes. By skillfully exploiting a legal loophole in the conversion tax law, what is called ...
In the conversion of companies, two laws are of great importance: the conversion law and the conversion tax law. While the conversion law regulates the civil aspects of a company conversion ...
The legal form of GmbH & Co. KG offers the option of a design model under tax law with which the income tax consolidation of profits and losses of Komplementär-GmbH and GmbH & Co. KG can be achieved ...
The legal form of GmbH & Co. KG offers the option under tax law of a design model with which the income tax consolidation of profits and losses of Komplementär-GmbH and GmbH & Co. KG is achieved.
The place of management and also the registered office of a corporation are relevant for the assessment of residence in international tax law. Should there be a dual residency, society ...
The tax-free transfer of operating companies to a holding company is associated with a blocking period of 7 years. This applies to the contributor for the share exchange in the holding company ...
26. October 2020 | Overview of the OECD Model Agreement – OECD-MA as the basis for DTA
If an operating split has occurred intentionally or unintentionally, one is faced with the problem of ending it again as control-neutrally as possible and avoiding the discovery of the hidden reserves. In the following article show ...
A division of operations can entail considerable tax disadvantages. Therefore, it is well-advised to avoid a division of operations in advance. As a rule, the factual characteristic of the personnel ...
A division of operations can also be used for the benefit of a company. However, the advantages must be considered in a differentiated way. They can be divided into business and income tax ...
In the case of the division of operations, considerable tax disadvantages arise especially for the owner company. On the one hand, the disadvantages of current taxation, such as income tax or business tax, are relevant for ...
If the objective of a business split is to separate a holding company from a holding company, they must be treated differently for tax purposes. It is important here whether these are corporations, such as ...
The payment of royalties by a German company to a licensor abroad in this country regularly requires a withholding tax of 15 %. It is irrelevant whether the license fee to an external ...
The legal consequences of a business split include the commercial nature of the owner. The consequences of commercial activity include the requalification of previous private income (e.g. rental and ...)
A division starts when the factual and human connections are a precondition. In return, the division of operations ends if an event is no longer considered to have been fulfilled ...
Personnel integration is the second necessary criterion for the existence of a division of operations. This means that in both companies, i.e. both the owner and the operating company ...
The basic fact of material interconnection is so legitimate that the holding company of the operating company must leave at least one essential operating basis[29] for use. The economic asset must ...
The forms of division of operations can be distinguished by three characteristics: on the one hand, the origin of the division of operations. It differentiates in terms of the real and fake division of operations ...
If a GmbH shareholder wants to move abroad, this usually leads to an exit tax. Germany levies a tax on the profit of the assumed sale of the GmbH shareholding. In doing so, ...
IP Box in Luxembourg has long enjoyed preferential tax treatment. Luxembourg-based companies were able to tax 80 % of their income on licenses to foreign companies free of tax. So it fell...
Many entrepreneurs and private individuals have already evaded taxes. This can happen both consciously and unknowingly. A timely self-report can prevent criminal proceedings. This means ...
The Anglo-Saxon term vesting means a regulation on duration and time, according to which, for example, a contractual agreement enters into force. Thus, the vesting has just in connection with Phantom ...
If a company is sold that has agreed to a virtual participation with its employees via phantom shares, this represents compensation. Therefore, such a bonus is subject to both wage tax and ...
In practice, disagreements and disputes between GmbH shareholders are not unusual. There are often considerable financial and economic interests at stake. However, in most cases it is possible to ...
Einheits-GmbH & Co. KG has a special structure in which the limited partnership is also the sole shareholder of its own general partner GmbH. Usually it is one or more of the limited partners who ...
Real estate transfer tax plays an essential role in property purchases. [1] Taxation of property transfers is different for a partnership than for a corporation.[2] Depending on ...
During the preparation and submission of tax returns and the subsequent assessment at the tax office, additional tax services may be incurred if one neglects tax obligations. So the late...
Appeals to tax rulings usually have to do with facts of German tax law. If the objection decision of the tax office made in this case does not appeal to the taxpayer, he can ...
If an entrepreneur wants to realize a special business idea with great potential for success abroad, this can be tax-advantageous. But he would like to return to Germany later with his company ...
The taxation of non-extracted profits under § 34a EStG is a favourable regime for partnerships in order to bring them closer to the tax rate of corporations (about 30 % tax rate). At ...
On 20 April this year, a commission of experts from the Federal Ministry of Justice and Consumer Protection presented a draft law on the modernisation of partnership law (MoPeG). This ...
As a rule, companies with limited liability (GmbH) have a fundamental interest in ensuring that their managing directors do not support competing companies. This interest applies in particular to the period ...
If several people plan to become entrepreneurs together, the establishment of a joint company is the most common variant of implementation. The association of several people can ...
The managing director plays a central role in the GmbH. After all, the GmbH Managing Director is responsible for managing the regular business operations. Due to this essential function, the GmbH Managing Director has ...
If a taxpayer legally doubts a tax notice of his tax office, he has the opportunity to file an objection with the tax office. If the tax office continues to insist on its assessment, the ...
The purpose of the vast majority of companies with limited liability registered in the Federal Republic of Germany (GmbH) is to generate financial profits. Against this background, it is very useful to ...
The current transition of general mobility to electric vehicles is above all an important contribution to environmental protection. However, as the number of new registrations of electric vehicles falls short of expectations ...
The merger of corporations is one of the types of conversion that the UmwG makes available for the reorganisation of companies. The merger serves the integration of companies, that is, ...
Taxing the private use of business electric vehicles is significantly more advantageous compared to the same taxation of a conventional vehicle. There are three different situations. First of all, ...
Selling a partnership abroad usually leads to a taxation of capital gains. After all, this is also regulated in Germany. Even if with the state in which the ...
For the promotion of electromobility, higher premiums are currently available for both pure electric vehicles and plug-in hybrids. The state contribution to the environmental bonus is currently temporarily increasing ...
If a GmbH is founded, the founding shareholders must raise the share capital of the GmbH. During the life of a GmbH, however, for various reasons it may be necessary or useful to ...
The GbR (= company civil law) represents the basis of all partnerships in the German legal system. As an association of at least two persons, the GbR can, among other things, ...
When setting up a company, raising sufficient start-up capital is often the first hurdle. For example, the minimum capital in the context of a GmbH founding already amounts to EUR 25,000. For this reason...
Many companies face the question of whether restructuring is necessary in the course of their existence. In particular, it is about the way in which the conversion is to be carried out, the greatest possible advantage for the ...
Various reasons can speak in the course of the existence of an entrepreneurial company for the transformation of the form of company. Such events may arise, for example, from company law or ...
The limited partnership (referred to as KG for short) in its various forms (especially the GmbH & Co. KG) is one of the very frequently chosen forms of company in the business world. The factors of management and ...
The managing director plays a central role in every GmbH. He is responsible for managing the daily operations of the company. For the handling of ordinary business, the GmbH Managing Director has certain ...
Recently, Friede Springer transferred a fortune worth about 1 billion euros tax-free to Mathias Döpfner by donation. This is a share package of Axel Springer SE. We suspect that the...
Suppose a GmbH shareholder owns two GmbHs and wants to transfer money from one to the sister GmbH. You can distribute the money as a dividend to the shareholder in order to then ...
In a GmbH, the managing directors are responsible for ordinary business operations. The shareholders, especially in larger public companies, often limit themselves to extraordinary measures and the ...
The Foreign Tax Act contains rules for the taxation of shareholders of corporations who want to move abroad. Because by moving abroad, for example, a GmbH shareholder could ...
Anyone who wants to inherit or give away assets usually has an interest in making the associated inheritance tax or gift tax as low as possible. An option on how to achieve this goal ...
The change of form of a GmbH into a partnership can have various advantages under tax law in individual cases. The civil implementation of the change of legal form must be in accordance with the relevant provisions of the ...
If you want to purchase a property without having to pay real estate acquisition tax, then this is possible via a share deal. For this purpose, the vendor must meet the condition that he has the property in a company ...
In order to avoid high tax burdens in the sale of assets, § 6b EStG makes it possible, under certain conditions, to place an arising profit in a § 6b reserve and thus tax ...
A family foundation offers numerous tax advantages. One of them is that it allows you to transfer assets without a regular gift tax or inheritance tax. But at the end of each thirty years, it is ...
The company looks back on a rich history. The first German stock exchange law came into force in 1843 by a decision of the Prussian king. Even more than 150 years later, the AG is still a ...
24. August 2020 | Conversion of a sole proprietorship: objectives and procedures (this contribution)
Many GmbH shareholders are looking for a way to be able to inherit or give away GmbH shares tax-free. Of course, your own children or other family members should usually benefit from this. Where:
In order to successfully manage a limited liability company (GmbH), the shareholders have to make numerous entrepreneurial and administrative decisions. The processes of the formation of the will of a ...
Note: this is a contribution according to old legal situation! Information on the new legal situation can be found in our contributions:
In the economic world, company purchases are commonplace. It must be noted here that every company purchase poses special challenges for the participants. First of all, it is always necessary to decide whether the ...
If you as a GmbH shareholder want to transfer money to your GmbH, you have three options at your disposal: increase of the share capital, payment on the capital reserve or provision of a capital reserve.
The limited partnership (KG) in its various forms (especially the GmbH & Co. KG) is one of the most used and practically relevant forms of company. This is sometimes also due to the fact that the KG ...
Note: due to changes in the law, the information contained in this article is only partially current
According to Section 8 (1) of the PartGG, “for liabilities of the partnership the creditors are jointly and severally liable in addition to the assets of the partnership.” As a result, this means that each partner is fully responsible for ...
23. August 2018 | GmbH loss carry forwards: § 8c KStG unconstitutional -> objection & deadline
The question of the amount of taxes on company sales employs many entrepreneurs. Whether it is a sole proprietorship, a GmbH, GmbH & Co. KG or a complex holding company, answers ...
The fall in the share price of Wirecard due to speculation about balance sheet manipulation has hit shareholders quite unexpectedly. Now many are looking for legal representation to file a lawsuit. Because Wirecard has apparently long ...
06.07.2020 | Lock periods in conversion tax law – contribution in kind and exchange of shares
The establishment of a holding company to take up an operative GmbH can take place tax-neutrally by contribution. The prerequisite is that this is done in the form of a share exchange, whereby the holding company has at least 51% of the ...
06.07.2020 | Lock periods in conversion tax law – contribution in kind and exchange of shares
06.07.2020 | Lock periods in conversion tax law – contribution in kind and exchange of shares
06.07.2020 | Lock periods in conversion tax law – contribution in kind and exchange of shares
Postponing taxes to pay them the following year sounds tempting to many entrepreneurs. In fact, this is possible more than once in a row. For this it is necessary that one ...
The vermögensvermanagementende GmbH offers interesting advantages in the taxation of profits from trading in shares, ETFs or other funds as well as real estate. Because the vermögensvermanagementende GmbH pays on the profits from the ...
06.07.2020 | Lock periods in conversion tax law – contribution in kind and exchange of shares
06.07.2020 | Locking periods in conversion tax law – contribution in kind and exchange of shares (this contribution)
In certain cases, payments by a GmbH to its shareholders are inadmissible due to the violation of the capital conservation round rate. As a legal consequence of an inadmissible payment, the respective ...
If GmbH shareholders support competitors or conduct business for their own account in the GmbH division, this can make the financial and entrepreneurial success of a GmbH considerably more difficult. To ...
A hidden distribution of profits – often abbreviated to vGA – is from a tax point of view an indirect payment of dividends from a corporation to a shareholder. This reduces the ...
If a holding company based abroad is involved in a German GmbH, the tax-free distribution of profits to the holding company is often an important issue. However, this is currently only due to one on this goal...
The grand coalition’s stimulus package also aims to increase the crediting of business tax to income tax. This is a tax offsetting procedure with which a balanced ...
08. June 2020 | Change in the 2020 VAT rate: reduction from 19% to 16%
08. June 2020 | Change in the Sales Tax Rate 2020: What Entrepreneurs Have to Consider
08. June 2020 | Change in the sales tax rate 2020: What entrepreneurs have to consider (this post)
08. June 2020 | Sales tax reduction: What consumers should know now (this post)
25. February 2021 | Tax assessment & tax collection at the German tax easing
25. February 2021 | Tax assessment & tax collection at the German tax easing
To ensure that tax-neutral cross-border transfers are also possible in the EU, the Council of Europe adopted the Fusion Directive (FRL) in 2009. The FRL is intended to harmonise the tax system, which ...
25. February 2021 | Tax assessment & tax collection at the German tax easing
If cross-border measures in tax law are restricted or discriminated against, the restrictions or discriminations are permissible if the legislature thereby achieves a legitimate goal of its sovereign interests (e.g. ...)
In practice, in certain constellations it may be in the interest of a GmbH to acquire its own shares from an outgoing shareholder. The acquisition of own shares can ...
In principle, nationals of other Member States (or companies) should not be treated worse than their own nationals. However, should nationals of other Member States still be worse ...
Even in the case of third-country conversions, the free movement of capital comes into play, since according to art. 63 TFEU also covers third countries. Here are then the relations between the third country conversion and a ...
In the case of cross-border establishment and/or acquisition of permanent establishments, both the freedom of establishment and the freedom of movement of capital apply in principle. Here it is to ...
The free movement of capital in European tax law prohibits national provisions restricting cross-border capital movements. The standstill clause of the type must be observed here. 64 TFEU, which includes a ...
The freedom of establishment in the EU also applies to companies (partnerships and corporations alike). This allows companies within the EU to have their headquarters or their ...
25. February 2021 | Tax assessment & tax collection at the German tax easing
25. February 2021 | Tax assessment & tax collection at the German tax easing
GmbH & Co. KG is one of the most common forms of business in the Federal Republic of Germany. In fact, the choice of this legal form for the shareholders in individual cases may vary ...
25. February 2021 | Tax assessment & tax collection at the German tax easing
In order for the Federal Republic of Germany to be able to assert its right to tax domestic or foreign assets, certain conditions must be met. Such conditions are tax ...
Consequently, for the allocation of the assets of the entire company to the parent company and to the individual establishments, there must also be criteria with which these can be distributed within the company. As a criterion ...
In the case of a cross-border contribution, the resulting capital gain shall be determined in accordance with the nature of the transfer. 7 par. 2 and Art. 13 paras 1 to 5 OECD-MA, since the assets of the (domestic) establishment are distributed to the ...
In international tax law, the term permanent establishment is often used to represent connecting points of a tax alien in the country. This article explains what constitutes a permanent establishment under national law.
A cross-border transfer occurs when two of the three connecting points are located in different states. Also in the case of cross-border contributions, the tax easing ...
Transfers within Germany are usually made from a sole proprietorship to a corporation. Here the scope of § 20 UmwStG is opened, which guarantees the tax-neutral contribution if the ...
In addition to the contributions and conversions provided for by the UmwStG, taxable contributions can also be made without the UmwStG. These contributions outside the UmwStG are based on the principles of income tax ...
After the individual company has been transferred to a corporation, the legislator sets a blocking period of 7 years. The blocking period is intended to be an immediate departure of the shareholder or ...
When transferring assets and/or material groups to corporations, in addition to the material requirements (object of the transfer), the personal requirements must also be examined. The personal ...
When hybrid companies are transferred, there are special requirements for them so that a tax-neutral transfer can take place under German law. Find out here what a hybrid society is, which ...
In addition to the contribution of companies or subsidiaries as groups of subjects, the legislature also allows the tax-neutral contribution of co-entrepreneur shares. In addition to clarifying who is a fellow entrepreneur, the question ...
When individual enterprises are transferred to corporations or partnerships, the sole proprietor transfers his assets and/or material groups to the (new) company and receives for this purpose in ...
The Commercial Code (HGB) contains detailed provisions regarding the profit sharing of shareholders of a personal trading company (OHG, KG, GmbH & Co. KG). However, these legal regulations are by no means ...
Through the transfer of assets, the departure of companies or cross-border conversions, assets are removed from German tax jurisdiction and transferred to a foreign permanent establishment.
In jurisprudence X and Y of 21.11.2002 – Az. C-436/00, the ECJ dealt with a Swedish tax deregulation norm. In the case of dispute, it was about the transfer of shares in a (Swedish) subsidiary in ...
Under French income tax, in 2004, significant holdings of more than 25 % in limited liability companies were taxed when the shareholder moved his registered office abroad. In doing so, ...
In 1997, taxpayer N moved his residence from the Netherlands to the UK. N was the sole shareholder of three limited companies which have their registered office in the Netherlands. After ...
The Dutch National Grid Indus BV (capital company) moved its administrative headquarters to Great Britain on 15 December 2000 and thus triggered double taxation, as it is still in the United Kingdom due to its statutory seat.
In the case-law DMC (ECJ judgment of 23.01.2014 – Az. C-164/12), two Austrian limited companies held a limited partnership in the German DMC KG. In the context of a submission, both ...
The Verder LabTec jurisprudence of 21.05.2015 – Az. C-657/13 concerned Verder LabTec GmbH & Co. KG (German partnership), in which two Dutch limited partners were involved. The Verder LabTec transferred ...
In Portuguese conversion tax law, there were two restrictions on fundamental freedoms, which were taken up in the ECJ judgment of 21.12.2016 – Az.C-503/14. The first restriction was on exchange...
In the judgment of 23.11.2017 – Az. C-292/16, an Austrian crediting permanent establishment was to be carried out by way of transfer to an Austrian corporation by the Finnish resident A. As a result, ...
According to Spanish income tax law, when a taxpayer's place of residence is transferred, all income not yet allocated is drawn into the taxable year of the transfer of residence. In this final taxation ...
The aim of the European Court of Justice (ECJ) is to safeguard European fundamental freedoms. As the largest European court, it is up to the ECJ to uphold the interpretation of the EU treaties. The cases before the ECJ ...
The aim of the European Court of Justice (ECJ) is to safeguard European fundamental freedoms. As the largest European court, it is up to the ECJ to uphold the interpretation of the EU treaties. The cases before the ECJ ...
For most people, it is a personal need to pass on the wealth accumulated during their lifetime, regardless of extent and composition, to the heirs in the event of death. Existing ...
If a company is insolvent or over-indebted, it is legally obliged to file an application for insolvency proceedings. For this purpose, the procedure in ...
After the Bundestag, the Bundesrat has now also paved the way for legislation to help companies affected by the Corona pandemic through insolvency. This is about an emergency solution that the previous procedure for ...
The current corona pandemic poses existential difficulties for small and medium-sized enterprises in particular. Especially through massive collapses in the order situation threatens many the insolvency. They are from ...
In order to be able to act, every GmbH needs at least one managing director. The managing director represents the GmbH externally and makes everyday business decisions. However, if a significant change in the ...
When establishing or increasing the capital of a GmbH, the concealed contribution in kind represents a risk that cannot be neglected. However, since this legal institution in particular legal laymen is usually unknown, in ...
An organisation is an association of undertakings. In order to establish an organisation, four conditions must be met. On the one hand, you need a commercial organ carrier. Furthermore, a subordinate to him ...
Some changes are planned for exit taxation with effect from 01.01.2020. Provisions are now to apply, according to which, on the return of a shareholder of a domestic corporation within ...
The company form of the GmbH is largely designed for a personal connection of the shareholders. For a wide variety of reasons, however, in practice there are regular resignations of a GmbH shareholder ...
When you transfer a property, property acquisition tax usually applies. However, if you want to bring a property into a sole proprietorship or partnership, there is the possibility of ...
The conversion of companies often requires a notarized deed. For example, in the case of a change of form of a GmbH into a GmbH & Co. KG, the change of form decision must be notarized. If converted by ...
Persons in education or study who have already completed vocational training can set the associated costs for income tax return tax-reducing. Taxation is between the first ...
The conversion of a company may lead to taxation under the VAT. In our article, we discuss the conditions under which a sales tax is avoidable. Especially the ...
The distribution of profits from a GmbH is usually taxed at the shareholders by the capital gains tax. Alternatively, however, there is also the so-called Parts Income Method, which under certain ...
The double-storey holding company is a construct consisting of several affiliated companies. With such a structure, up to 6 tax advantages can be realized.
The conversion of a company – for example a GmbH – can also be carried out retroactively for up to eight months. This is true even if an entity resulting from the conversion becomes retroactive to that conversion.
Many citizens may know that the registered merchant and the registered merchant (generally: merchant) form a special status according to the HGB, but few know the legal differences between ...
From our practice as a tax law firm with a focus on corporate taxation, we know that in company audits, the tax office often expresses suspicion of misuse of design. However, our experience shows ...
The legal practice of large international corporations (such as Amazon, Apple, Facebook, Google) to circumvent taxation de facto by cleverly shaping taxes by exploiting interstate loopholes in tax law has struck ...
When starting a company abroad, you should always avoid these five common mistakes. On the one hand, it is about the location of the management, which must be abroad. Furthermore, the transmission of ...
The regulation of § 6b(10) EStG creates liquidity for companies in order to make new investments. This is made possible by the tax-neutral transfer of uncovered hidden reserves from the sale of ...
The request for binding information from the tax office is a possibility that taxpayers can use to obtain legal certainty in advance about tax-relevant projects. In our contribution we go to the ...
If you intend to sell your GmbH, you should consider the option of conversion into a GmbH & Co. KG. In this way, you will bypass the dilemma that the Alternative Share Deal and Asset Deal would otherwise leave you with.
There are three ways to convert a company by division: division, separation and spin-off. Often this leads to a new company being founded, with the aim of...
The merger of a GmbH into another GmbH is possible both while retaining the acquiring GmbH and by incorporating a newly founded GmbH. In both cases, civil law, company law and ...
In the event of insolvency and over-indebtedness, the managing director of a GmbH must request the opening of insolvency proceedings (formerly: bankruptcy). However, this has a significant impact on the image of the GmbH in the competition for ...
Note: due to changes in the law, the information contained in this article is only partially current
If a GmbH shareholder or his legal successor claims a severance payment vis-à-vis the GmbH, serious burdens can occur for the company. This is true both in financial and ...
D&O insurance (Directors & Officers insurance) are interesting for GmbHs who want a liability protection for their bodies such as managing directors. In particular, the D&O insurance for ...
The lifting rate in business tax is the key to tax calculation. Finally, it determines the amount of business tax. The height of the lifting set is variable, because it is determined by the cities and municipalities ...
The principles for the proper maintenance and storage of books, records and documents in electronic form as well as for data access (short GoBD) have been applied since 1 January 2015. These are ...
With this article we explain the principle of chain joining. In addition, we inform about requirements and deadlines that are important in the option of chain joining. Furthermore, we explain how you have a...
When it comes to the social security status of a GmbH managing director who is also a shareholder, consultants have to consider several options. In principle, managing directors of ...
In international tax design, companies use the low tax rates in other countries. For example, you establish patent companies and licensing companies in the Bahamas, Cayman Island, British ...
The objection procedure is a legally regulated remedy with which you can take action against decisions of the tax office. As an appeal procedure, it is therefore subject to certain conditions and time limits. This can ...
11. November 2018 | Atypical silent company to GmbH: trade tax exemption
Utility models, intellectual property of plants and genetic material, identification as medicinal products, patent extensions | Copyrighted software | Other intellectual property
10. November 2018 | Exit tax according to § 6 AStG: Remission & deferral in special cases
22. September 2018 | Asset Deal at the GmbH purchase: Purchase price tax depreciation
A division of operations can lead to considerable tax disadvantages and risks. We will show you how to avoid the division of the company by specifying the prerequisites – in particular the human connections and ...
23. August 2018 | GmbH loss carry forwards: § 8c KStG unconstitutional -> objection & deadline
23. August 2018 | GmbH loss carry forwards: § 8c KStG unconstitutional -> objection & deadline
Brexit: Britain wants to get out of the EU. Hardly anyone expected this – especially not in Germany. The speculation about the course of Brexit and the subsequent period following the withdrawal of the United ...
Brexit: 29 March 2019. When goods are imported from the UK and delivered to the UK, there will be consequences for both entrepreneurs and private individuals as a result of leaving the EU. As ...
In principle, gift and inheritance are subject to inheritance and gift tax under German law. The amount of annual tax revenue in Germany due to inheritances and gifts is EUR 6 billion.
From a tax point of view, the first step is to examine whether the outgoing and divesting co-entrepreneur realises the fact of a profit through his sale. This does not only result from ...
In the early years, an entrepreneurial activity is often carried out as a sole proprietorship or in the legal form of a company under civil law (GbR). Once entrepreneurial success increases, many want to...
Under German tax law, the sale of a GmbH is 40% tax-free through the so-called Parts Income Procedure and thus offers you as a seller many tax advantages. At holding companies you even get a 95 ...
A holding company is an empty corporation (usually in the legal form of a GmbH) that does not have an operational business. At Holding-GmbH, the holding and management of investments in ...
This article explains the taxation of profit distributions (dividends) at the shareholder. Here there are clear differences between shareholders in the legal form of corporations (GmbH) ...
GmbH shareholders are daily exposed to the risk of hidden profit distribution (vGA). In addition, the financial administration excessively often assumes a hidden profit distribution. Therefore, this article shows the ...
The taxpayer must specify in his income tax return expenses that the tax office does not recognize when issuing the tax notice. According to § 350 AO, the taxpayer, since he ...
08. November 2019 | At withholding tax on licenses, operating expenses are deductible
As part of our tax design, we develop models that lead to a significant tax advantage. Since these are of course always legal tax models, the financial administration tries these tax structures with ...
Normally, income earned on a private sale is subject to income tax. This also applies, among other things, to the profit from the sale of a property (for example, a detached house or condominium) ...
23. August 2018 | GmbH loss carry forwards: § 8c KStG unconstitutional -> objection & deadline
Exiting the UK from the European Union at the end of March 2019 can have significant tax consequences when taxing individuals by eliminating tax exemptions. In addition, it can ...
International inheritance tax law and gift tax is particularly complicated. Here, a distinction is made between EU/EEA property conduct and non-EU property conduct. Using the example of the UK, we explain the ...
A German GmbH can be converted into a foreign partnership. That this is classically done by cross-border merger, we have already shown in another article. Show here...
The tax deposit account with foreign corporations: Here there are special features in the separate determination of the deposit account, in the capital repayment and capital reduction as well as in the ...
A German GmbH can move its administrative headquarters abroad. In terms of taxation, however, there are many differences between the transfer of the seat to an EU country and the transfer of the seat to a third country. We show these differences...
08. November 2019 | At withholding tax on licenses, operating expenses are deductible
The dreaded Brexit is getting closer. In just over two months' time, the possible withdrawal of the United Kingdom from the European Union is imminent, and there are still uncertainties and uncertainties. About the ...
29 January 2019 | Bitcoins & cryptocurrencies: Moving abroad allows tax-free sales (this contribution)
08. November 2019 | At withholding tax on licenses, operating expenses are deductible
Online trading on eBay & Amazon: From 2019, sellers at online marketplaces must have their tax office issue a certificate of safety. This confirms the tax registration of the ...
A holding company usually has the legal form of a corporation (UG, GmbH or AG) and is simply established. The classic holding GmbH, for example, has many advantages in taxing profit distributions ...
In international corporate taxation, the choice of the right legal form is crucial. Because partnerships (e.g. GmbH & Co. KG) are treated transparently in international tax law, so that here rigid ...
German law changes on April 1st 2019. Sellers on Amazon & Ebay in Germany will need a Clearance Certificate to sell their products after this date. Furthermore, online sellers need an Authorized Representative (= Authorized ...)
Commercial infection is of great importance in practice. You are a freelancer and want to join together to form a GbR or partnership? The highest caution is required here, because if a ...
In the video we explain the advantages & disadvantages of the commercial stamping of a classic GmbH & Co. KG and the possibilities of avoidance.
The right of real division has always been characterized by the lack of a legal definition of the concept of real division. [1] Although the term has been mentioned in the EStG for more than fifteen years, so far ...
10. November 2018 | Exit tax according to § 6 AStG: Remission & deferral in special cases
23. August 2018 | GmbH loss carry forwards: § 8c KStG unconstitutional -> objection & deadline
10. November 2018 | Exit tax according to § 6 AStG: Remission & deferral in special cases (this contribution)
08. November 2019 | For withholding tax on licenses, operating expenses are deductible (this contribution)
07. November 2018 | Exit taxation the valuation of GmbH shares (this contribution)
The definition of a permanent establishment is a focal point in international tax law. The permanent establishment has special significance in national law for the recording of domestic income according to § 49 EStG. In addition, only ...
If GmbH shares are transferred to another GmbH (share exchange in accordance with § 21 UmwStG), a so-called status improvement is created. This is due to the fact that in this holding structure a tax-free sale is possible ...
As of January 1, 2018, the license barrier is to be applied to license fees within a group. The license barrier restricts the deduction of operating expenses for license fees to foreign affiliates. For this purpose ...
22. October 2018 | Taxation of Bitcoins and cryptocurrencies (this contribution)
The annual financial statements represent the economic situation at the end of a company’s financial year. This is why it forms an important basis for essential entrepreneurial decisions. The term ...
Tax evasion is punishable in German law with imprisonment up to five years or with a fine. Particularly serious cases are even punished with a minimum of six months with up to ten years ...
The tax office charges interest for late tax payments. These repayment interest rates account for a proud 6% per year. Such a magnitude cannot be justified in times of low interest rates for investors. So ...
23. August 2018 | GmbH loss carry forward: § 8c KStG unconstitutional -> Objection & deadline (this contribution)
From 1 January 2018, the license barrier limits the operating expense deduction for license expenses. Such operating expenses should no longer be deductible for certain international corporate structures. Consequence: A higher ...
The gift tax and the inheritance tax were newly regulated in 2016. We show you the allowances, tax rates and company benefits. We also provide information about the legal reporting obligation and the ...
In the event of inheritance, each heir must submit his own inheritance tax return. Special advice is particularly important here. Responsible a special inheritance and gift tax office and not the residence tax office.
The division of operations in tax law brings more tax disadvantages than advantages. In doing so, it develops its effects especially for the GmbH shareholder. Because he has as a owner commercial ...
If the objection of a taxpayer is rejected by the tax office by the so-called objection decision, you can file a complaint with the competent tax court. The deadline for the action is one month after ...
If the annual profit is distributed to the shareholders, capital gains tax of 25% is added, plus solidarity surcharge. Finally, the GmbH shareholder thus remains in total about 50% of the ...
An audit is an announced external audit by the financial administration and is carried out routinely or on a special occasion. Special occasions may include:
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.
A self-declaration gives you the immune effect in the case of tax evasion. We show you which requirements you have to meet since January 1, 2015 and what has changed in 2015. Good to ...
Until now, the tax administration had behaved only restrictively to the tax recognition of incongruent and disquotal profit distributions. According to the now increasing case law of the Bundesfinanzhof and the ...
Use usufruct to transfer GmbH shares or partnerships to your children. Real estate can also be given away tax-optimized under conditional usufruct. For this, the German laws see the ...
For a long time, the rules governing the organisation have been criticised and a fundamental reform called for. Due to a lack of budgetary resources, this cannot be implemented for the time being. In the course of the “Law of Amendment and ...”
23. August 2018 | GmbH loss carry forwards: § 8c KStG unconstitutional -> objection & deadline
A GmbH can acquire its own shares from its shareholders. The shareholder sells his shares to the GmbH (acquisitioner). The GmbH must then account for these shares as "own shares" ...
GmbH & Co. KG is a special legal form. Compared to the normal GmbH, a GmbH & Co. KG is relatively rare. But especially in real estate tax law, this legal form offers considerable advantages. This ...
1. | Tax value of the agricultural and forestry assets
23. August 2018 | GmbH loss carry forwards: § 8c KStG unconstitutional -> objection & deadline
The profit transfer agreement for the income tax coverage of an organisation is the subject of the contribution published below. It is about both the historical roots and development of the ...
This article deals with the possibility of dismissal in the case of the theft of low-value objects, i.e. an employment law topic. At the same time, however, it is always a topical issue. Especially the aspect that employers ...
