A permanent establishment is a crucial concept in taxation, especially in international tax treaties. It determines whether the profits of a foreign company or taxpayer are taxable in the host country. It refers to a fixed place of business where commercial activities are carried out, such as an office, branch, …
A limited liability corporation (LLC) in Germany offers various advantages for businesses. To get started, you need to choose the right legal form that fits your needs, such as GmbH or UG. It´s also important to select a suitable company name and clearly define your business objectives. You can see …
A GmbH (Gesellschaft mit beschränkter Haftung) is one of the most common legal business structures in Germany, offering limited liability to its owners. Similar to an LLC in the U.S. or an Ltd. in the U.K., a GmbH allows entrepreneurs to operate a business while protecting their personal assets from company debts. Contents1 What is a GmbH?1.1 …
Contents1 Basic information 2 Forms of German BAV2.1 Direct insurance2.2 Pensionskasse2.3 Pensionsfonds2.4 Unterstützungskasse2.5 Unterstützungszusage Basic information Not everyone has the opportunity to make private provision for old age. For this reason, the German state has introduced an entitlement for employees to occupational pension provision. Employees have a legal right to so-called …
Especially for employees of start-up companies, there is a new regulation (§ 19a German Income Tax Act “EStG”) according to which income from the transfer of asset shares in the employer’s company is initially not taxed. This also applies if the asset participations are held indirectly via partnerships. The regulation applies …
A fiscal unity for VAT purposes pursuant to § 2 para. 2 no. 2 sentence 1 UStG (“German VAT act”) exists if a legal entity is financially, economically and organizationally integrated into the company of the controlling company according to the overall picture of the actual circumstances. The financial integration of …
How high should the managing director’s salary ideally be? What is the maximum with as little tax as possible? Here are a few practical examples: This week a client came to me for advice because he wants to convert his sole proprietorship into a limited liability company and wanted to know …
Contents1 What does it mean?2 Requirements3 Clarification in the BMF letter (Federal Ministry of Finance)4 How does the application work? 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 …
The following is a brief overview of the #tax #benefits in the area of electric vehicles: Advantages for employees Free or reduced-price charging of the batteries of electric or hybrid electric vehicles at the employer’s premises is tax-exempt according to § 3 no. 46 EStG (German income tax act) if …
Contents1 What do the accounting and recording obligations cover? 2 When is proper bookkeeping given? 3 What retention periods apply to the accounting documents? 4 The 10-year retention period applies to, among other things: 5 Subject to the 6-year retention obligation are, among others: 6 Tax audit and access rights of the German tax authorities7 …