{"id":6438,"date":"2024-12-04T10:35:43","date_gmt":"2024-12-04T09:35:43","guid":{"rendered":"https:\/\/www.benefitax.de\/2024\/12\/04\/holding-companies\/"},"modified":"2025-01-22T12:39:21","modified_gmt":"2025-01-22T11:39:21","slug":"holding-companies","status":"publish","type":"post","link":"https:\/\/www.benefitax.de\/en\/holding-companies\/","title":{"rendered":"Holding companies"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"6438\" class=\"elementor elementor-6438 elementor-5292\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-45ead52 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"45ead52\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-fbc264f\" data-id=\"fbc264f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bc21ff7 elementor-widget elementor-widget-heading\" data-id=\"bc21ff7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">The holding company as a tax-saving model?<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3079047 elementor-widget elementor-widget-text-editor\" data-id=\"3079047\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Holding companies hold investments in other companies. The bookkeeping and annual financial statements are generally very straightforward due to the low level of business activity. According to Section 8b of the German Corporation Tax Act, profit distributions from other corporations to the holding company are tax-free if the holding amounts to at least 10% of the share capital or nominal capital and if the flat-rate prohibition on deducting business expenses of 5% of dividends is disregarded. Taxation only occurs when the profit is distributed to a natural person. As a rule, the final withholding tax of 25% + solidarity surcharge then applies. However, the partial income method or the lower individual tax rate of the natural person may also apply. This makes the holding company suitable for distributing profits from profitable operating companies and legally shifting the high tax burden that would normally be incurred to the future.        <\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4f85e20 elementor-widget elementor-widget-heading\" data-id=\"4f85e20\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Is the holding company entitled to deduct input tax?<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-741c667 elementor-widget elementor-widget-text-editor\" data-id=\"741c667\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Whether a holding company is entitled to deduct input tax depends on the tasks it performs. A purely financial holding company, whose purpose is the acquisition and holding of investments, does not carry out any economic activity of its own and is therefore not entitled to deduct input VAT. A pure management holding company, on the other hand, which intervenes in the management of subsidiaries in return for payment, carries out its own economic activity and is therefore entitled to deduct input tax. The situation is more difficult for a mixed holding company, which provides services to some subsidiaries in return for payment and concentrates on merely holding investments in others. A limited input tax deduction is possible here. This also applies if the holding company makes partially tax-free transactions.     <\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The holding company as a tax-saving model? Holding companies hold investments in other companies. The bookkeeping and annual financial statements are generally very straightforward due to the low level of business activity. According to Section 8b of the German Corporation Tax Act, profit distributions from other corporations to the holding company are tax-free if the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-6438","post","type-post","status-publish","format-standard","hentry","category-wiki-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Holding companies - Steuerberatung | Wirtschaftspr\u00fcfung<\/title>\n<meta name=\"description\" content=\"Holding companies hold investments in other companies. 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