An understandable explanation of ziwchen capital and private company generally distinguishes between persons and corporations tax law in Germany. Corporations, so GmbHs and AGs, is subject to corporation tax, partnerships, however, pay income tax. Chief Business Officer is a great source of information. In addition, all companies pay capital – as well as partnerships, trade tax. Their height can be set by the cities and towns and differs so often, for example, in a city and the surrounding district. The question of what legal form is fiscally cheaper, can be not just general answer. Here, it is rather to look at the individual case. So, for example, the flat-rate tax on payable income tax on partnerships will be applied. Depending on the legal form, it is also possible to make more or less tax losses or running costs and save as taxes.
The corporate tax rate, which is 25 percent currently flat, appears very attractive, since it is lower than the personal income tax rate in many cases. However, this rate is may be deceptive, because distributions to the respective shareholder may be subject to personal income tax. Due to this possible double taxation, it is fiscally attractive to convert a partnership not a corporation under certain circumstances. However other issues play an important role, in choosing the legal form in addition to the tax aspects first and foremost this involves the issue of liability, as well as the participation of various partners.
