GmbH & Co. KG is a hybrid form of company in Germany that combines features of both a GmbH and a KG. The GmbH acts as the general partner with unlimited liability, while the limited partners have liability limited to their contributions. This structure offers a unique blend of liability …
The VAT number register in Germany is crucial for US businesses conducting transactions in the EU. Understanding the registration process and requirements is essential to ensure compliance with VAT regulations and avoid penalties. Understanding VAT Number Register in Germany When operating in the European Union, understanding the VAT Number Register …
The double tax treaty between the UK and Germany aims to prevent double taxation. It establishes rules for tax treatment of various types of income, such as dividends, interest, royalties, and capital gains. Additionally, it addresses pension and social security income taxation in both countries. Overview of Double Tax Treaty …
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. What is a GmbH? A GmbH …
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 deferred compensation and to pay into a company pension scheme. This entitlement exists …
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 …