Optimizing taxes: Conversion of a sole proprietorship into a GmbH To save on taxes, a sole proprietorship can be converted into a limited liability company (GmbH). This is possible for up to 8 months retroactively and tax-neutral. This article explains the advantages and disadvantages of a GmbH and the conversion of a sole proprietorship into a GmbH. Background Entrepreneur A […]
Imagine you have made a mistake on your tax return and the tax office has already issued an audit order. In this case, a self-disclosure could serve to save the day. But what if this option is excluded? This is where the penalty-exempt resignation comes into play – a legal “lifeline” that many people are unaware of. In this article […]
Self-disclosures in tax matters have recently become a sensitive topic for many taxpayers – especially against the backdrop of ongoing collective information requests by the tax investigation department in the area of cryptocurrencies/bitcoins. Since January 1, 2015, there has been an important change in German tax law that is particularly relevant for those who are thinking about filing a self-disclosure. […]
For sole proprietors, it often makes sense to set up a holding structure to save taxes in the long term and to use the available cash flow from tax savings for further growth. This article explains the advantages, disadvantages and implementation of a holding structure based on a practical example. Advantages and disadvantages of a holding structure Before we dive […]
Digitalization of accounting not only means moving from a paper-based to a paperless office, but also redefining accounting processes. Thanks to modern technologies, companies can manage, analyze and use their financial data more efficiently. Selected examples of accounting processes that benefit from digital transformation In the following, we show selected examples of accounting processes that benefit from digital transformation: 1. […]
In a ruling, the Federal Fiscal Court (Bundesfinanzhof, BFH) has clarified that a contractual allocation of the purchase price may not be replaced by a calculation in accordance with the Excel tool of the Federal Ministry of Finance (Bundesministerium für Finanzen, BMF). Background The BMF’s Excel tool is used to determine the assessment basis for the depreciation of buildings pursuant […]
The introduction of the One-Stop-Shop (OSS) process on July 1, 2021, has brought numerous benefits to German e-commerce companies. Nevertheless, practical application shows that e-commerce companies that use sales platforms such as eBay for their sales are confronted with significant hidden risks when creating outgoing invoices. These risks often only come to light during a tax audit. Background If a […]
Entrepreneurs are allowed to deduct input VAT if business events do not serve purely private needs but are related to business activities. Input VAT deduction for attentions depends on the overall activity. The input VAT deduction requires a direct and immediate connection between input and output turnover. If the connection exists with taxable output transactions, the deduction is possible. If […]
The EU authorizes Germany to introduce electronic invoicing (e-invoicing) for certain transactions as early as January 01, 2025, before it becomes mandatory throughout the EU. Germany had submitted an application on November 10, 2022, which has now been approved. The bill is to be limited to B2B sales for now and will be addressed in the Growth Opportunity Act legislative […]
The Annual Tax Act of 2022 (JStG 2022) is a typical omnibus bill comprising over 100 individual provisions spanning the entire spectrum of tax law. It also includes key initiatives by the “traffic light” coalition aimed at reducing the tax burden on citizens. In doing so, it also responds to court rulings and EU requirements. The law was passed by […]
