Companies of the Federal Government | Lukinski https://lukinski.com Tue, 01 Mar 2022 15:17:23 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.5 Corporate income tax (KSt) simply explained: UG, GmbH & other legal forms https://lukinski.com/corporate-income-tax-kst-simply-explained-ug-gmbh-other-legal-forms/ Mon, 08 Mar 2021 13:52:40 +0000 https://lukinski.de/corporate-income-tax-kst-simply-explained-ug-gmbh-other-legal-forms/ Corporate income tax – Most legal forms of business are subject to taxation. Depending on the legal form, income tax, corporate income tax, sales tax, trade tax and/or capital gains tax are due by law. Under certain circumstances, it is possible for some companies to be exempt from one or more of these types of tax. Who pays corporate income tax? How much is corporation tax? What do you have to pay corporation tax on? An overview! Back to: Taxes.

Corporate income tax (KSt) – tax for legal entities

Corporate income tax – KSt for short – is usually levied on the income or profit of legal entities domiciled in Germany and is thus complementary to income tax (ESt), which is usually levied on individuals. Taxable persons typically include corporations, associations, cooperatives and foundations. A limitation of corporate income tax comes into play, for example, if the management and headquarters of the legal entity are located abroad. Political entities, federal companies, state banks and social security funds, professional associations and some others are fully exempt from the obligation to pay corporate income tax.

Other taxes for businesses:

If you want to learn more specifically about taxes for real estate companies, you can learn more here:

Corporate income tax in detail: collection, levy & allowances

As a corporate tax, corporate income tax counts as a community tax and is levied by both the federal government and the states. The amount of the levy is calculated on the basis of the taxable income, which is the result of the profit less special expenses and extraordinary burdens, and is currently 15 percent plus the solidarity surcharge (SolZ), resulting in an overall tax rate of 15.825 percent. Corporate income tax is payable quarterly on March 10, June 10, September 10 and December 10 in equal instalments as an advance payment and is offset against the actual tax liability at the end of each fiscal year.

Dates for advance payment of corporate income tax:

  • March 10
  • June 10
  • September 10
  • December 10

As a rule, the corporate income tax return must be filed by 30 April of the following year at the latest for the preceding tax period. Extensions are possible under certain circumstances. Members of the tax advisory professions are generally subject to different deadlines for filing the corporate income tax return.

Allowances for companies without profit distribution

Companies that do not distribute profits – for example non-profit associations – can benefit from a tax-free allowance of currently 5,000 euros, whereas agricultural and forestry cooperatives and associations may be entitled to a tax-free allowance of 15,000 euros. For companies that record losses within the valid tax period, taxation does not apply at all.

Which companies are subject to corporation tax?

Most legal entities are subject to corporate income tax. All corporations – limited liability companies (GmbH), stock corporations (AG), partnerships limited by shares (KGaA), etc. – as well as cooperatives and business cooperatives are usually affected. In addition, mutual insurance companies and mutual pension fund associations have to meet their corporate income tax obligation, as do institutions, foundations, associations, etc. Commercially active public corporations – for example, transport companies or public utilities – are also affected by corporate income tax.

  • Associations
  • Institutions
  • Foundations
  • Corporations
  • Acquisition cooperatives
  • Business cooperatives
  • Mutual insurance companies
  • Mutual pension funds
  • Commercially active public bodies

Partnerships such as the general partnership (OHG) or the limited partnership (KG) are generally not subject to corporation tax or income tax, but the natural persons and legal entities with partner status belonging to them are. The profit generated by the partnership is subject to uniform and separate determination and is allocated directly to the individual partners in accordance with their legal form: Legal entities must charge their profit shares to corporation tax, natural persons to income tax.

  • Partnerships: Legal entities with profit shares

Political parties, professional associations, charitable corporations and federal corporations are generally exempt from corporate income tax.

Overview of company law forms

You can find more information about the different legal forms under the following links. Starting with the sole proprietorship and the registered traders… to the various partnerships and corporations… to other companies such as the family foundation – all the essential aspects of formation, liability, tax burden and more explained simply and understandably! First of all, an overview of the individual legal forms of companies:

Taxes in Germany: List

Corporation tax (KSt), income tax (ESt), capital gains tax (KapESt), turnover tax (USt), trade tax (GewSt) – who pays what? In this overview of the different types of taxes / tax forms in Germany, you will find relevant taxes for you as an individual and for your business, depending on which legal form you have chosen. Also, after the tax list: How does the tax cycle work around month-end closing, year-end closing and balance sheet? A little insight for those starting their first company. What taxes are there? Simple explanations, definitions, tax optimization, an insight into taxes.

]]> Management Board – governing body of a stock corporation (AG) https://lukinski.com/management-board-governing-body-of-a-stock-corporation-ag/ Mon, 08 Mar 2021 12:24:41 +0000 https://lukinski.de/management-board-governing-body-of-a-stock-corporation-ag/ Management board – The management board of a stock corporation deals with the day-to-day business and other affairs of the company and represents the stock corporation externally. The supervisory board is a legally prescribed self-controlling body that appoints and monitors the individual members of the management board and, in case of doubt, also removes them. Furthermore, it is responsible for the written reporting of the annual financial statements as well as for annual reports. The general meeting acts as the decision-making body of the stock corporation. Here you can find all legal forms and here you can go back to the overview AG.

Board of Directors – The management body

Instead of managing directors, a stock corporation has an executive board consisting of at least one managing person. As a management body, the executive board forms the metaphorical head of the company and thus has management authority in the internal relationship and representation authority in the external relationship. The Management Board is appointed by the Supervisory Board for a term of five years and is obliged to report to the Supervisory Board.

More on the other bodies of a public limited company:

Tasks of the Management Board – management, annual balance sheet, management report & Co

The primary task of the management board of an AG is the independent management of the company. Contextually, it establishes the annual balance sheet, prepares the profit and loss account (P&L) and prepares a management report that depicts the company’s situation – current and future – in a realistic relationship to possible opportunities and risks. Formally, the Management Board issues the invitation to the Annual General Meeting and can submit proposals to the Annual General Meeting on the appropriation of profits. It is also the only body which, in a worst-case scenario, may file an application for the opening of insolvency proceedings.

Duties of the Management Board at a glance:

  • Independent management
  • Reporting to the Supervisory Board
  • Approval of the annual balance sheet
  • Statement of profit and loss
  • Preparation of a management report
  • Invitation to the Annual General Meeting
  • Proposal for the appropriation of profits
  • Application for the opening of insolvency proceedings

The individual members of the management board are entered in the commercial register and must also be listed by name on the AG’s business letters. Upon taking office, they may not simultaneously act as a member of the supervisory board of their company and are also prohibited by the prohibition of cross-linking from being appointed as a member of the supervisory board of another company. As compensation, each member of the Management Board receives a fixed salary and also receives a so-called bonus, i.e. a share in the annual profit.

AG: foundation, legal form, special case real estate

  1. Stock corporation (AG)
  2. Real estate stock corporation (REIT-AG)
  3. Real estate company

Stock corporation (AG): Formation, liability, legal form & Co.

Aktiengesellschaft (AG) – The stock corporation is a German legal form founded by at least one person and organized by different bodies. Instead of a managing director, the company is managed by a board of directors consisting of at least one person. As the name already indicates, this legal form of a company primarily stands for stock trading. You would like to start a company alone or together with other people and learn more about company law forms in advance? Then you’ve come to the right place!

Real estate stock corporation (REIT-AG)

Real estate stock corporation / REIT-AG – You don’t find the idea of a stock corporation bad at all and are now wondering how you can combine your capital company with the real estate industry? A real estate company is a company that serves the financing, development, realization, leasing, or marketing of real estate – starting with a single property up to a real estate portfolio in the three or multi-digit range. The management of real estate property or third-party real estate on behalf of third parties can also be handled by a real estate company.

Real Estate GmbH & Asset Management GmbH

Alternative – In this article you will learn the basics about real estate companies. Briefly explained, a real estate company is a company that has the purpose of leasing, developing, financing, realizing and/or marketing. It doesn’t matter if it is one or more properties. The management of residential and commercial real estate – in its own interest or as a service offered to third parties – is also a popular focus for real estate companies and asset management GmbHs. Find out more about the main advantages and disadvantages of buying real estate and the expected costs.

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