detrimental change of shareholders

Continuation-linked loss carryforward according to § 8d KStG in Germany

What does it mean? If there is a detrimental change of shareholders (change of more than 50% of the shareholders), the losses accumulated so far are lost. One way to avoid this is to apply for a continuation-linked loss carryforward. Requirements The prerequisite for this is that the essential core of the activity does …

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Tax audit Germany

Compliance for the tax audit in Germany

What do the accounting and recording obligations cover?  Basically, a distinction is made between the accounting obligation under commercial law and the accounting obligation under tax law. Every merchant within the meaning of the HGB (German commercial Act) who has to prepare a commercial balance sheet is subject to the accounting …

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Digitalpaket

Digital package of VAT

As of July 1, 2021, significant changes in the area of VAT have come into effect as part of the implementation of the so-called VAT digital package. The provision of Section 3c UStG previously known as “mail order delivery” will now be renamed “intra-community distance selling”. The place of supply …

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Construction withholding tax in Germany

Construction withholding tax in Germany

Under certain circumstances, the recipient of a construction service (all services that serve the construction, repair, maintenance, alteration or removal of structures) must withhold a 15% deduction from the consideration.Excluded are planning services, e.g. of architects, structural engineers, civil engineers and surveyors, as well as pure services for the supervision of construction, …

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Partial sale of Real Estate in Germany

Partial sale of Real Estate in Germany

For some time now, there have been new financing offers for seniors on the real estate market. These include, above all, the partial sale of the property. In this case, the owner sells an ideal co-ownership share in the property (for example 20 % to 50 %) to a commercial …

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turnover tax when renting out

Option to pay turnover tax when renting out

Voluntarily foregoing a tax exemption may sound strange, and most people will certainly immediately feel uncomfortable.  In principle, landlords are entrepreneurs in the VAT sense. In this respect, the VAT view differs from the income tax view. Rental income is subject to turnover tax, but a tax exemption applies. Accordingly, no …

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Land transfer Tax in Germany

The Tax treatment of land transfer tax in Germany

With the amendment of the Real Estate Transfer Tax Act in May of this year, the legislator changed the Real Estate Transfer Tax after a long discussion and made it much stricter in some points. For example, land transfer tax was only triggered in the case of transfers to real estate companies …

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Taxable gifts

Taxable gifts

Gifts to employees are generally benefits which, according to the assumption of the tax office, are made on the basis of the employment relationship. Accordingly, the actual value of the gift is taxable. However, if the gift is merely a gift from the employee on the occasion of a personal event …

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Betrieblicher_PKW

The private use of company cars in Germany

The use of a company vehicle by the entrepreneur for private purposes means an advantage for him in his private sphere for tax purposes. This is because it may save him the expense of purchasing his own vehicle for private purposes or other non-business purposes (e.g. journeys within the scope …

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Rechnungsangaben

Issuing invoices in Germany

In principle, entrepreneurs are obliged to issue invoices for the supplies they make or other services they provide.  The VAT Act stipulates what information an invoice must contain. If the information is incorrect, the receiving entrepreneur is denied the right to a refund of VAT.  In principle, the full name …

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