German Profit Taxes

Оглавление

Christoph Freichel. German Profit Taxes

German Profit Taxes

Preface

Table of contents

List of abbreviations

1Introduction to German profit tax law. 1.1The importance of taxes

1.2Tax burden and tax justice

1.3The three tax disciplines

Note

1.4The tax system. 1.4.1Earnings of the state

1.4.1.1Taxes

1.4.1.2Fees

1.4.1.3Contributions

1.4.1.4Special levies

1.4.2Classification of the tax types

Note

1.4.3Taxation terminology. 1.4.3.1Taxpayer and/or taxable subject

1.4.3.2Subject of taxation and/or taxable object

1.4.3.3Tax base

1.4.3.4Tax threshold, tax allowance, deductible amount

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1.4.3.5Tax rate and tax scale

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1.4.4Tax sovereignty

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Summary

Questions

Literature

2Personal income tax. 2.1Basic principles of personal income tax. 2.1.1Characterization, importance and principles of personal income tax. 2.1.1.1Legal basis

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2.1.1.2Characteristics and demarcation of the personal income tax

2.1.1.3Fiscal and economic importance

2.1.1.4Principles of income taxation

2.1.1.5The two forms of income tax assement

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Summary

Questions

2.1.2Personal and impersonal liability for personal income tax

2.1.3Personal liability for personal income tax

2.1.3.1Types of unlimited tax liability

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2.1.3.2Types of limited tax liability

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2.1.3.3Problem of double taxation

2.1.4Impersonal liability for personal income tax

2.1.4.1The types of income

2.1.4.2Determination of the personal income tax

2.1.4.3Classification of earnings and expenses

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2.1.5Temporal assignment. 2.1.5.1Assessment period and determination period

2.1.5.2Fiscal year

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Summary

Questions

Literature

2.2Determination of taxable income

2.2.1Determination of income. 2.2.1.1Overview of the methods of determining income

2.2.1.2Determination of profit

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2.2.1.3Determination of surplus income

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2.2.2Seven types of income

2.2.2.1The profit income types

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2.2.2.2The surplus income types

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2.2.2.3Compensation and income from previous employment (Sec. 24 EStG)

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2.2.3Determination of the total amount of income. 2.2.3.1Elderly allowance (Altersentlastungsbetrag)

2.2.3.2Tax allowance for single parents

2.2.3.3Deduction for farmers and foresters

Summary

Questions

2.2.4Fiscal treatment of losses

2.2.4.1Loss compensation

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2.2.4.2Loss deduction

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Summary

Questions

2.2.5Special expenses. 2.2.5.1Concept of special expenses

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2.2.5.2Unlimited deductible special expenses

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2.2.5.3Limited deductible special expenses

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2.2.6.Extraordinary expenses. 2.2.6.1Concept of extraordinary expenses

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2.2.6.2Extraordinary expenses in general cases

2.2.6.3Extraordinary expenses in standardized cases

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Summary

Questions

2.2.7Family benefit compensation

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Summary

Questions

2.2.8Assessment basis and scale. 2.2.8.1The taxable income

2.2.8.2Scaled income tax

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2.2.8.3Special rates according to Secs. 34 and 34a EStG

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2.2.8.4Determination of the personal income tax to be assessed

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2.2.8.5Determination of the final payment and/or the refund entitlement

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Summary

Questions

Literature

2.3Partnerships

2.3.1Co-partner income

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2.3.2Other partners of a partnership

Summary

Questions

Literature

3Corporate income tax. 3.1Basic principles

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3.1.1Characteristic features

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3.1.2Personal tax liability

3.1.2.1Unlimited tax liability

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3.1.2.2Limited tax liability

3.1.3Tax exemption

3.2Tax assessment basis. 3.2.1Determination of taxable income

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3.2.2Adaptations of the commercial balance sheet to the tax balance sheet

3.2.3Additions and deductions to determine the taxable income outside of the balance sheet

3.2.3.1Hidden profit distributions

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3.2.3.2Hidden equity contributions

3.2.3.3Tax-exempt income from investments in accordance with Sec. 8b (1) KStG

3.2.3.4Non-deductible expenditures in accordance with Sec. 10 KStG

3.2.3.5Non-deductible expenditures in accordance with Secs. 4 (5), (5b), 4h, 4j EStG, Secs. 8a, 8b (3) and (5) KStG

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3.2.3.6Donations

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3.2.4From the total amount of income to the remaining corporate income tax payment/refund

Summary

Questions

Literature

4Trade tax. 4.1Basic principles. 4.1.1Characterization of trade tax

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4.1.2Subject of taxation

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4.1.3Personal tax liability

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4.2Business profit

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4.2.1Additions under Sec. 8 GewStG

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4.2.2Deductions under Sec. 9 GewStG

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4.2.3Loss carryforward

4.2.4Tax allowance, federal tax rate, municipal rate and advance payments

4.3Breakdown

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4.4Lump-sum crediting of trade tax

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4.5Final question on trade tax

Summary

Questions

Literature

5Legal neutrality of taxation. 5.1Principle of legal neutrality of taxation

5.2Approaches for the implementation of legal form neutral taxation in Germany

Note

Literature

6Final comprehensive case. 6.1Information regarding corporate income tax

6.2Information regarding personal income tax

6.3Solution notes

6.4Solution. 6.4.1Determination of the taxable income/provision for trade tax/provision for corporate income tax

6.4.2Calculation of the tax liability for 2018

6.4.2.1Application of the flat-rate withholding tax within the meaning of Sec. 32d EStG

6.4.2.2Application of the partial-income method within the meaning of Sec. 3 no. 40 lit. d EStG

List of figures

List of tables

Translations. English – German

German - English

Index

Отрывок из книги

Christoph Freichel, Gernot Brähler,

Christian Lösel, Andreas Krenzin

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2.2.6.1Concept of extraordinary expenses

2.2.6.2Extraordinary expenses in general cases

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