Tax measures at the turn of the year - For entrepreneurs

Apply for group taxation

For corporations, forming a Business group the possibility to offset profits and losses (including foreign ones) of the included companies should be created. This sometimes offers significant positive tax effects. The prerequisite is that the required financial link (a capital stake of more than 50% and a majority of voting rights) has existed since the start of the financial year, and that a group application has been submitted to the tax office accordingly. For all limited companies whose financial year corresponds to the calendar year (i.e. balance sheet date 31 December), the group application must be submitted by at the latest 31.12.11 to be introduced so that it still has an effect on the tax assessment for 2011. The same applies to inclusion in an existing corporate group (e.g. because a new shareholding was acquired on 01.01.2011).

Research funding - research premium

The Research funding in 2011 compared to previous years Simplified, as it just one Research premium from 10% provides, but no longer offers different research allowances. The research premium is considered Tax credit designed and therefore applies in both profit and loss-making years. Furthermore, research expenses are tax-deductible regardless of whether the research premium is claimed. The for the premium relevant research expenditure can Personnel and material expenses for research and development activities, overheads, financing expenses, and investments directly serving research and development (including the acquisition of land). The research premium is for Self-research this must be in Inland occur) is not limited in terms of sum. In contrast, the Basis for remuneration for contract research – The prerequisite, in turn, is that it is a domestic contractor – with the client €100,000 limited (abolition of the cap planned from 2012).

Tax-free allowance

As a successor benefit to the tax-free allowance on invested gains, there is since 2010 den Tax-free allowance. This is available to all natural persons regardless of method of profit determination and amounts to up to 13% of the profit maximal €100,000 per year). Up to a profit of €30,000 each taxpayer is entitled to without proof one Tax-free allowance from 13% (thus €3,900); corresponding investments are required to claim a higher tax-free allowance. Sponsored investments encompass fundamentally Tangible non-current assets or specific securities (particularly bonds and bond funds) and require a period of use or. Retention period from 4 years. When utilising a Flat-rate operating expenses stands only The Tax-free allowance to. The tax-free allowance reduces also the GSVG assessment basis and therefore next to The Tax burden Also die Social security contributions.

Advance payments (half-year depreciation) and timing of payment/receipt for income and expenditure calculation software

For investments that after dem 30.6.11 If the purchase is made, half the annual depreciation can be claimed in the second half of the year, regardless of the date of purchase. The Preferring investments at the latest in December 2011, it can therefore provide tax advantages. Low-value assets (up to €400) can be paid immediately in full to be deposed.

E-A calculators can fundamentally, by exploiting the inflow/outflow principle, temporary relocation to tax liability. However, for expenses listed in § 19 (3) of the EStG (e.g. consulting, rental, sales, administrative, interest costs etc.), only a one-year advance payment Tax deductible! Regularly recurring income or expenses that are due at the end of the year are to be allocated to the calendar year to which they economically belong if they are made within 15 days before or after 31st December. So-called „abandoned claims“, which are paid at a later date only at the creditor’s request, are nevertheless regarded as having already been received (in the previous year).

GSVG exemption

Small business owner (Annual turnover under €30,000, income under €4,488.24) may be exempt from GSVG for 2011 up to 31 December 2011 apply. Eligible Young entrepreneur (max. 12 months GSVG-mandatory insurance in the last 5 years), persons aged 60 and over or persons over 57 years of age if the aforementioned limits have not been exceeded in the last 5 years.

Retention obligations

With 31.12.11 fundamentally ends 7-year retention obligation for business documents for the year 2004. Records which are relevant to a pending tax or other official/court proceedings must also be retained. Records for properties in Advance tax settlement are 12 years to retain for a long time. If properties are not used exclusively for business purposes and input tax was claimed on the non-business part, the retention obligation is extended to 22 years. Under no circumstances should documents be destroyed that serve as evidence, for example, in product liability, property, inventory, and employment contract law.

Deductibility of donations

Donations from business assets to specific Research institutions and educational institutions serving adult education, as well as at universities etc., can up to a Maximum amount from 10% an operating expense from the previous financial year's profit. In addition, and in terms of amount Unlimited Can monetary and in-kind donations related to assistance in disaster situations also be claimed, provided they are for the Advertising serve. Also Donations for charitable causes are tax deductible as business expenses. It is essential that the organisation receiving the donation or the fundraising association is in the BMF List appears and that the donation was made in 2011 and can be proven. A double consideration a specific donation as a business expense and as a special expense (see the explanations in the section „For all taxpayers“) Not possible. It should also be noted that corporate and personal donations combined must not exceed the maximum of 10% of the previous year’s profit.

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