Holding companies hold shares in other companies. Accounting and annual financial statements are generally very manageable due to low business activities. According to § 8b Corporation Tax Act, profit distributions of other corporations to the holding company are tax-free if the participation amounts to at least 10% of the nominal share capital and if one disregards that 5% of the dividends are treated as non-deductible expenses. Only when the profit is distributed to a natural person taxation takes place. As a rule, the final withholding tax of 25% + solidarity surcharge is then payable. If necessary, the partial income method or the lower individual tax rate of the natural person may also be applied.
https://www.benefitax.de/wp-content/uploads/2016/04/logo-benefitax-steuerberatungsgesellschaft-wirtschaftspruefungsgesellschaft-e1492791093664.png 0 0 benefitax_admin https://www.benefitax.de/wp-content/uploads/2016/04/logo-benefitax-steuerberatungsgesellschaft-wirtschaftspruefungsgesellschaft-e1492791093664.png benefitax_admin2019-01-24 12:32:552019-01-24 12:32:55Holding Companies