Corporate taxation

We are also characterised by our extensive experience of significant litigation and structuring in the area of corporation tax law. Due to numerous publications in renowned professional journals as well as the standard commentary ‘Streck KStG’, which is published by C.H. Beck Verlag under the editorship of Prof. Dr Burkhard Binnewies, we are at the highest and most up-to-date level of expertise. As with natural persons, the first question to be asked of corporations is whether they are subject to unlimited or limited tax liability. In practice, the dispute over the place of management plays an important role in terms of tax law and criminal tax law.

Moving in and moving out

Both the relocation of a corporation to Germany and the relocation of a corporation from Germany to another country have significant consequences under tax law. Here we advise with the aim of avoiding the realisation of hidden reserves in the assets of the corporation.

Drafting the articles of association from a tax law perspective

When drafting articles of association for corporations under German law, the focus is often placed on civil law. The articles of association should also be reviewed and drafted from a tax law perspective as early as the formation of a corporation under German law. Later problems under tax law (splitting of operations, hidden profit distributions, elimination of loss carryforwards, gift tax on incongruent contributions, incongruent appropriation of profits and incongruent distributions) can be avoided or mitigated if the articles of association are optimised from a tax law perspective.

Current taxation

As part of the ongoing taxation of the corporation, we advise both in the form of disputes with the tax authorities and in the form of structuring advice. We frequently deal with the issues of hidden profit distributions, the exemption of capital gains and dividends at the level of the corporation, the recognition of a consolidated tax group for income tax purposes, the withholding of capital gains tax when distinguishing between distributions and payments from the contribution account, the elimination of losses pursuant to Section 8c KStG and the tax treatment of liquidation.

Restructuring

We also regularly advise on restructuring into a corporation (contribution of sole proprietorships, co-entrepreneurial shares, business units, shares in corporations/share swaps) as well as out of a corporation (restructuring into a partnership or sole proprietorship). Careful contract drafting is required here to avoid the realisation of hidden reserves.