Tax Planning During GmbH Crisis: Debt Waiver with Recovery Note and Loss Carryback—A Real-World Case Study Many growth- and research-intensive companies face the same problem in their early years: high development expenses, consistently negative results, and financing primarily through shareholder loans. The following anonymized case study of a German GmbH with a foreign parent company illustrates the income tax implications […]
Business Succession: Planning Under the Sword of Damocles of the German High Court Ruling (BVerfG) The inheritance and gift tax benefits under Sections 13a and 13b of the German Inheritance Tax Act (ErbStG) have for years been among the key tools for tax-optimized business succession. At the same time, ensuring a seamless business succession has become increasingly complex, as these […]
Reporting unreported profits—and suddenly exempt from trade tax? In this example, a GmbH retroactively reported transactions that increased its profits to the tax office. In the course of this audit, it became apparent that the GmbH meets the requirements for trade tax exemption under Section 3(13) of the Trade Tax Act (GewStG) (e.g., healthcare professions, clinics, or educational institutions with […]
Relocating accounting operations abroad: regulations and how to avoid penalties German regulations on the relocation of electronic invoicing have become more flexible in recent years. Companies can now maintain and manage electronic books and records not only within the EU/EEA, but also in other countries, provided that the legal requirements are met. These include countries such as the USA, Switzerland […]
§13a Inheritance Tax Act 2026: Business succession – between tax relief and constitutional risk Business succession is not only a matter of family, leadership, and strategy, but also a key tax decision. Section 13a of the German Inheritance Tax Act (ErbStG) can significantly reduce the tax burden on business assets in the event of inheritance or a gift—provided that the […]
E‑Invoicing from 2025: Requirements, Transitional Regime and Practical Impacts As an entrepreneur or service provider, you inevitably have to deal with invoices. However, starting from 2025, businesses must observe changes because of the e-invoicing obligation. This article deals with these innovations and further information. Paper invoices and e-invoices Invoices are part of day-to-day business for entrepreneurs, service providers and customers. […]
Inheritance in Germany: allowances for less inheritance tax Usually, anyone who experiences a death in the family also deals with inheritance. In Germany, inheritance is subject to tax. However, there are allowances that vary depending on the degree of relatedness and the amount of the inheritance. These allowances make it possible to pay less levy. This article explains the various […]
Growing digitally: Our presence at JTL Connect 2024 Dear readers, We are pleased to announce that we will be participating as a digital tax consultant at the JTL Connect 2024 which will take place on September 27, 2024. The event will showcase the latest developments in e-commerce. It enables an exchange on important tax aspects in the digital age. As […]
