From the tax-free allowance for invested profits to the profit allowance

With effect from 1.1.2010, through the extension of the tax-free allowance for invested profits (FBiG) and by the simultaneous Cancellation of the privileged taxation of undistributed profits§ 11a German Income Tax Acta simplification of tax reliefs. The „new“ lump-sum personal allowance is independent of the profit determination method for all natural persons applicable, which Business income generate. If the profit exceeds €30,000, the investment-related profit allowance can be claimed for this additional amount, provided there are corresponding investments. The upper limit remains unchanged at €100,000 per taxpayer per year. Transition profits related to a change in the method of profit determination can be included for the benefit, but not capital gains. If the profit is generated by Lump sum investigated, the basic personal allowance can be claimed, but not the investment-related profit allowance. The Allowance increased to oneself 10% to 13% and leads to a profit of €30,000 without the need for any corresponding investment automatic to a fictitious operational expense of up to €3,900, which should also provide parity with employees (favourable taxation of the 13th and 14th salary).

The Requirements for the investment-related profit allowance, compared to the FBiG unchanged – it must either be in Tangible, depreciable assets or into specific Securities to be invested and the Minimum retention period Must four years amount. The consequences are not entirely clear if existing securities are sold before the expiry of the term and if assets eligible for the investment-related tax-free allowance are acquired within the same investment period. The Text of the law Subsequently, the period of still unexpired securities must be continued with the new depreciable assets, and it is not possible to opt instead for a retrospective taxation of the old tax-free allowance and to claim the new investment-related tax-free allowance.

In the Tax Assessment 2009 the old FBiG may be utilised for the last time. Due to the increase from 10% to 13%, it may – provided that it is also commercially feasible – useful To be, one Replacement investment into the New Year to move, in order to claim the investment-related profit allowance.

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