The taxation of the income of a GmbH
Regardless of whether the GmbH accumulated (company with civil law), the profit calculated according to the above corrections, or pays out to the shareholders: Earnings subject to § 23 KStG the body tax rate of 15% , what also a solidarity surcharge of 5 .5% of corporate income tax applies.
According to § 30 KStG, corporation tax arises at the end of the assessment period, whereby the GmbH has to make quarterly advance payments on corporation tax over the course of the year, which are based on the corporation tax burden of the previous year. These advance payments and the associated solidarity surcharges are posted as follows:
- Account SKR 03 Debit * Account description * Amount EUR * Account SKR 03 Credit * Account description * Amount EUR
- 2200 * corporate tax * 1200
- 2208 * solidarity surcharge
- Account SKR 04 Debit * Account description * Amount EUR * Account SKR 04 * Credit * Account description * Amount EUR
- 7600 * corporate tax * 1800
- 7608 * solidarity surcharge
According to dictionaryforall.com, once the financial year has ended, it is possible to calculate the actual corporation tax burden of the GmbH. In order to perform the calculation, it is only necessary that the income that is taxable must be multiplied by the tax rate of 15%. Furthermore, the solidarity surcharge of 5.5% must be taken into account.
Should it be established at the end of the year that the actual corporation tax and solidarity surcharge:
- If the amount is lower than the advance payments made, a claim in the amount of the reimbursement contribution against the tax office must be capitalized in the balance sheet:
- Account SKR 03 Debit * Account description * Amount EUR * Account SKR 03 Credit * Account description * Amount EUR
- 1549 * corporation tax return * 2200 * corporation tax
- 2208 * solidarity surcharge
- Account SKR 04 Debit * Account description * Amount EUR * Account SKR 04 * Credit * Account description * Amount EUR
- 1450 * corporate tax recovery * 7600 * corporate tax
- 7608 * solidarity surcharge
- If the amount is higher than the advance payments made, the amount of the additional payment must be recognized in the balance sheet in the form of a provision :
- Account SKR 03 Debit * Account description * Amount EUR * Account SKR 03 Credit * Account description * Amount EUR
- 2200 * corporation tax * 0963 * corporation tax provision
- 2208 * solidarity surcharge
- Account SKR 04 Debit * Account description * Amount EUR * Account SKR 04 * Credit * Account description * Amount EUR
- 7600 * corporation tax * 3040 * corporation tax provision
- 7608 * solidarity surcharge
It can also happen that the reimbursement claim against the tax office due to an overpaid corporation tax or the provision made for the corporation tax back payment in the following year was set too high or too low. If this is the case, the following postings must be made for the differences:
- Corporate income tax payment for previous years (SKR 03: Account 2203, SKR 04: Account 7603)
- Solidarity surcharge for previous years (SKR 03: Account 2209, SKR 04: Account 7609)
- Corporate tax refunds for previous years (SKR 03: Account 2204, SKR 04: Account 7604)
- Solidarity reimbursements for previous years (SKR 03: account 2210, SKR 04: account 7607)
Summary
The corporation tax (KSt) is the “corporate income tax” and there are many similarities, especially with regard to the scope of the income and the determination of the income. If a corporation is entitled to distribute profits, these are in principle part of the assessment base for income tax of the shareholder who received the distribution.
The laws, regulations and jurisprudence
In corporate income tax law, the principles and regulations of income tax law largely apply and this is supplemented by special provisions of the corporate income tax law:
- §§ 1 – 6 KStG first part: tax liability;
- §§ 7 – 22 KStG Part Two: Income;
- §§ 23 – 26 KStG Third part: tariff; Taxation on foreign parts of the income;
- §§ 27 – 32a KStG, Part Four: Contributions not made in the nominal capital and creation and assessment;
- Sections 33 – 35 KStG Part Five: Authorization and Final Provisions;
- Sections 36 – 40 KStG Sixth part: Special provisions for the transition from the crediting procedure to the half-income procedure.
All income is taxable. Companies that have domestic income, but neither over in Germany, are subject to limited tax liability
- a seat
- Another management
feature.
The course of the procedure
The corporation tax return must be authenticated electronically and sent to the responsible tax office and this also applies to the associated ones.
- Tax balance or the trade balance with reconciliation
- Profit and Loss Account.
- The declaration for the separate determination of the tax bases
As far as authentication is concerned, this is done using the ELSTER certificate. In order to receive this, the taxpayer must register with the ELSTEROnline portal. The tax office then determines the amount of the tax and creates a tax assessment, which is then sent with a request for payment or the information about the credit payout.
The deadlines
The corporation tax for the previous calendar (fiscal year) must be submitted by May 31st. The advance payments on corporate income tax are to be made to:
- March 10th
- the 10th of June
- September 10
- 10th of December
Note! The corporation has to pay tax on the profit it generates and at the same time can distribute this profit to the shareholders. With these profit distributions, the shareholders are subject to income tax, which means they have to pay tax on them!
