Paid Archives - ℄ Real Estates Tue, 01 Mar 2022 15:16:49 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.5 Value added tax (VAT) simply explained: amount, delivery & service – “VAT” for companies https://lukinski.com/value-added-tax-vat-simply-explained-amount-delivery-service-vat-for-companies/ Mon, 08 Mar 2021 14:05:15 +0000 https://lukinski.de/value-added-tax-vat-simply-explained-amount-delivery-service-vat-for-companies/ Value added tax – Most legal forms of business are subject to tax. 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 […]

Der Beitrag Value added tax (VAT) simply explained: amount, delivery & service – “VAT” for companies erschien zuerst auf ℄ Real Estates.

]]> Value added tax – Most legal forms of business are subject to tax. 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. What is the value added tax? What is the difference between VAT and sales tax? What is sales tax, simply explained? An overview! Back to: Taxes.

Value added tax (VAT) – tax for delivery & service

Value added tax – VAT for short – is usually levied on all turnover generated by a company in Germany for VAT purposes. This includes all supplies and services – as well as occasional ancillary transactions – that the company provides against payment as part of its business activities. VAT amounts that a company has paid for supplies and services it has received and that can be substantiated can be claimed as input tax deductions and thus reduce the entrepreneur’s VAT burden.

From an economic point of view, the own turnover tax thus represents a general consumption tax, but in Germany it ultimately functions as a transfer tax and is ultimately charged to the end consumer. Because it is passed on, sales tax is typically classified as an indirect tax. Currently, the standard German VAT rate is 19 percent – 7 percent on reduced goods – and is one of the main sources of revenue for financing the federal budget.

Other taxes for businesses:

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

Which companies are subject to VAT?

Most companies do not only carry out tax-exempt turnover and are therefore naturally burdened with turnover tax. Therefore, this type of tax is basically relevant for all common legal forms of companies, starting with sole proprietorships (EU) and BGB companies (GbR)… to the general partnerships (OHG) and limited partnerships (KG)… to the limited liability companies (GmbH) as well as the stock corporations (AG).

In common parlance, the term value added tax – VAT for short – is often used and is sometimes also indicated on invoices or receipts. The name comes from the understanding that a tax is levied in trade and production at several stages of the value chain, whereas VAT uses the turnover generated from a sale or in a similar way as the basis of assessment. In purely fiscal terms, however, the term value added tax is no longer used in Germany; instead, there is talk of a sales tax with input tax deduction.

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.

Der Beitrag Value added tax (VAT) simply explained: amount, delivery & service – “VAT” for companies erschien zuerst auf ℄ Real Estates.

]]> Capital gains tax (KapESt): How much? Allowance, GmbH, Shares & Law https://lukinski.com/capital-gains-tax-kapest-how-much-allowance-gmbh-shares-law/ Mon, 08 Mar 2021 14:00:24 +0000 https://lukinski.de/capital-gains-tax-kapest-how-much-allowance-gmbh-shares-law/ Capital gains tax – Most legal forms of business are subject to tax. 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 […]

Der Beitrag Capital gains tax (KapESt): How much? Allowance, GmbH, Shares & Law erschien zuerst auf ℄ Real Estates.

]]> Capital gains tax – Most legal forms of business are subject to tax. 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. What percentage is capital gains tax? What is the capital gains tax exemption amount? When is capital gains tax payable? How much is capital gains tax? An overview! Back to: Taxes.

Capital gains tax (KapESt) – tax on profit distribution

Tax law provides that – in addition to the income tax of any natural person with shareholder status – capital gains tax is levied on all natural persons resident in Germany who benefit from a distribution of profits. As a result, the recipient – but not the corporation – is burdened. The capital gains tax burdens both the profit income of shareholders of a GmbH and the distribution of dividends to shareholders of a stock corporation.

Other taxes for businesses:

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

Capital gains tax in detail – collection, levy & special cases

For the sake of simplicity, 25 percent of the dividend is withheld directly by the AG for share holders, similar to the way regular employers withhold wage tax (LSt) for their taxable employees. Capital gains tax – abbreviated to KESt, KapESt, KapErtSt or KapSt – is a special form of income tax levied here: Once the tax burden has been withheld, the income tax is deemed to have been paid and the income does not have to be declared in more detail – at least insofar as no other type of income applies or the special tax rate applies.

If, on the other hand, the registered office of a shareholder is abroad, the so-called withholding tax comes into effect and the provisions of the double taxation agreement (DTA) of the respective country must be taken into account. The final withholding tax is also levied on shares held as private assets within Germany.

Allowance for single persons & partners

The banks grant different options so that taxpayers can use tax-free amounts for themselves and, if necessary, distribute them. The so-called saver’s allowance is generally available to everyone and currently amounts to €801 per year for single persons and double that amount for spouses and registered partners: €1,602. The first euro above the exemption limit and all subsequent amounts are taxed as usual at 25 percent.

Which companies are subject to capital gains tax?

Most natural persons are subject to income tax. If they are also shareholders in a corporation – for example, a limited liability company (GmbH) or a stock corporation (AG) – capital gains tax also applies in many cases. The capital gains tax is also commonly referred to as the flat rate withholding tax (Abgeltungsteuer) and primarily taxes dividends and interest income at a flat rate of 25 percent. Usually, the tax office is informed automatically by the banks, similar to the way an employer pays the wage tax for his employees.

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 company, depending on which legal form you have chosen. In addition, after the tax list: How does the tax cycle work around monthly financial statements, annual financial statements and balance sheets? A little insight for those starting their first company. What taxes are there? Simple explanations, definitions, tax optimization, an insight into taxes.

Der Beitrag Capital gains tax (KapESt): How much? Allowance, GmbH, Shares & Law erschien zuerst auf ℄ Real Estates.

]]> Income tax (ESt) simply explained: forms, basic table, wage tax & Co. https://lukinski.com/income-tax-est-simply-explained-forms-basic-table-wage-tax-co/ Mon, 08 Mar 2021 13:55:56 +0000 https://lukinski.de/income-tax-est-simply-explained-forms-basic-table-wage-tax-co/ 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. […]

Der Beitrag Income tax (ESt) simply explained: forms, basic table, wage tax & Co. erschien zuerst auf ℄ Real Estates.

]]> 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. How much income tax do I have to pay? How do you calculate income tax? How much income tax do I pay? What do I pay income tax on? An overview! Back to: Taxes.

Income tax (ESt) – tax for natural persons

Income tax – ESt for short – is usually levied on the income of natural persons, according to their ability to pay. Income is understood as the sum of all income earned within the meaning of the Income Tax Act (EStG) minus the sum of all deductions relevant under tax law – such as any allowances. Taxable individuals are divided into self-employed persons, who generally have to pay their income tax themselves, and employees, whose income tax is withheld by their employer in the form of wage tax and paid to the tax office on their behalf.

Other taxes for businesses:

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

Income tax in detail – collection, levy & tax liability

As a joint tax, this tax revenue is divided between the federal, state and local governments. The municipalities receive the rate applicable under federal law – currently 15 percent of wage tax and assessed income tax – while the remainder goes to the federal government and the states in equal shares. Overall, all natural persons are generally liable to income tax and must pay tax on their income derived from self-employed and non-self-employed activities. The basic principles of income tax law are as follows:

  • Net principle
  • Periodicity principle
  • World Income Principle
  • Principle of differentiated rates
  • Ability-based taxation

Individuals resident in Germany are subject to unlimited tax liability; individuals resident abroad who earn income in Germany are subject to limited tax liability.

Allowance for low earners & Deductible business expenses

Natural persons with low income can use an allowance for themselves up to a current amount of 9,168 euros – this applies to both income from self-employment and income from non-self-employment. Entrepreneurs with income tax liability can also declare the following deductible business expenses in order to reduce their profits and, as a result, their taxable income:

  • Rental costs
  • Car costs
  • Personnel costs
  • Depreciation
  • Deductible input tax
  • Sales tax paid
  • Purchases of goods & services
  • Expenses for low-value assets

Which companies are subject to income tax?

Most natural persons are charged with income tax. Therefore, this type of tax is particularly relevant for sole proprietorships (EU) and BGB companies (GbR). In addition, general partnerships (OHG) and limited partnerships (KG) are usually subject to income tax. However, income tax may also be obligatory for a limited liability company (GmbH) or a stock corporation (AG), if applicable.

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: Natural persons with profit shares

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.

Der Beitrag Income tax (ESt) simply explained: forms, basic table, wage tax & Co. erschien zuerst auf ℄ Real Estates.

]]> 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 […]

Der Beitrag Corporate income tax (KSt) simply explained: UG, GmbH & other legal forms erschien zuerst auf ℄ Real Estates.

]]> 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.

Der Beitrag Corporate income tax (KSt) simply explained: UG, GmbH & other legal forms erschien zuerst auf ℄ Real Estates.

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