Areas of Activity
As part of the classical core business, we advise companies and also private persons with regard to tax optimization in conjunction with the business and financial structure. The preparation of tax returns of all kinds denotes more for us than just a tiresome obligation. It forms part of our consultancy process. Ongoing contacts with the revenues authorities and leading support functions during tax audits by revenue authorities and social security establishments are a matter of course for us.
Bookkeeping and the preparation of financial accounts
We prepare the monthly financial bookkeeping records and annual financial statements for both joint stock and private companies. Special taxation records, such as supplementary or special balance sheets and also the transition from the commercial balance sheet to the tax balance sheet, constitute integral components of our performance portfolio.
Preparation of payroll accounts
The preparation of payroll accounts in every sector, together with a clarification of social insurance matters and the preparation of travel expense statements, present no problem as far as our team is concerned.
Charitable (non-profit making) organizations
Another main aspect of our performance range is servicing the requirements of non-profit making organizations. These include foundations, associations and also charitable GmbHs or AGs (private or public limited companies).
A tax hurdle has to be overcome in order to be recognized as a charitable institution and in order to be able to utilize the resulting benefits. The charitable institution aspect has to be established by the responsible tax office on the strength of an application and the actual management has to be directed in the aforesaid direction. Appropriate statutes have to be prepared and associations have to be entered in the Associations Register, for example. Organizations have to pursue charitable, religious or benevolent objectives.
In this process, we are also at your disposal as from the date of your idea up to the actual implementation in order to be able to overcome all the related hurdles and problems. We are naturally also available to you as a trustee, e.g. for holding shares or administering funds and for the administration of trustee foundations, of course.
Numerous benefits have been established by legislators for charitable corporations; we show you how you are also able to benefit from them:
- The exemption of charitable corporations from land tax, inheritance tax and gift tax and, since January 1, 1993, interest income tax (so-called “withholding tax” on capital gains); regulations on tax concessions are to be found in Sections 51 to 68 of the German Tax Code (Abgabenordnung – AO). This includes “charitable purposes” (in Section 52 AO), “benevolent purposes” ( in Section 53 AO) and “religious purposes” (in Section 54 AO). The tax concession not only includes benefits but also additional accountability obligations and tax risks – it is therefore urgently recommended that expert advice is obtained;
- The possibility to issue donation confirmations for monetary and benefits in kind to charitable corporations which are deductible by the relevant donors for income tax purposes (up to certain maximum limits);
- The public promotion of charitable corporations by regional states and local authorities is likewise dependent in most regional states and local authorities on the specification of the relevant charitable purpose;
- Tax exemptions for trainers, promoters and tutors, inter alia, and ancillary activities up to euro 2,100 p.a.;
- Tax exemption on the expense flat rates of euro 500 for all honorary activities. A parallel claim of the training manager’s allowance is not possible;
- Tax exemption of special purpose operations from corporation and trade tax;
- Tax exemption the business of charitable corporations and the limit of special purpose operations for the sporting events of a sports association from corporation and trade tax up to an annual income of euro 35,000;
- A general sales (value-added) tax rate of 7 % on sales by special purpose operations;
- A number of banks waive account maintenance charges if a charitable purpose is documented.
International tax law
Globalization has long since reached medium-sized companies as well. German companies are being increasingly influenced by their integration into the European Community, the extension of the EU in the direction of the East and also the economic upturn in Asia. The resulting taxation matters brought about by cross-border business relationships, participations and permanent establishments with their complex structures are frequently the focus of special attention during the course of tax audits. For example, the aforesaid may relate to international transfer prices and the related documentation regulations.
Mr. Frank Lederle, a qualified tax consultant and a specialist advisor on international tax law, is available to you should the need arise.
Specific areas of consultancy include the following:
- Cross-border taxation of employees
- Foreign tax law (AStG)
- Taxation of permanent establishments (operating units)
- Double taxation law
- International issues of the German Reorganization Tax Act
- Taxation of non-resident taxpayers in Germany
- Structuring of foreign investments
- Calculation of transfer prices and their documentation
Business management consultancy
Taxation and business management consultancy only make sense if they originate from one source. Taxation considerations are also appraised from a business management point of view as part of our consultancy approach.
Potential weaknesses can be precisely determined and overcome in every company by means of appropriate operational assessments and costing analyses. We are also pleased to be of assistance to you with the preparation of restructuring analyses for banks and the implementation of the respective measures.
- General business management consultancy
- Short-term earnings statements
- Liquidity and financial planning
- Cash-flow analyses, balance sheet and earnings analyses Sector comparisons, operational efficiency analyses and forecasting procedures
- Advice on the establishment of a new business
- Company valuations
In addition to our major business operations, we also advise our Clients regarding the safeguarding of third party interests in business matters. This particularly includes the management of third party assets, holding company shares, estate/inheritance management.
Our tax consultants assist you in debt rescheduling/restructuring matters, with all bank derivatives and loan brokerage matters.
Companies are particularly advised by us with regard to the structuring of business successions in a company succession-related environment. Our team naturally assists you as well in general succession matters with regard to the execution of wills.