Business tax saving – is that possible?

Although, of course, must be paid in all other European countries, companies and businesses taxes, taking the German tax legislation in the form of business tax (abbreviated: Trade Tax) is a tax special legal status. Legally, the business tax advice is based on the provisions of the Trade Tax Act. The exact implementation of business tax collection by the tax authorities, however, is not regulated in the law itself, but in the business tax as well as implementing the business tax policies. The German trade tax is one of the so-called property taxes and also to the business tax. Among the technical term “property tax” it is because their basis for calculating the objective performance of the business enterprise to be taxed.

The business tax is actually a council tax

Besides the property tax is the business tax is one of the few original local taxes, which flow through the business tax revenue that is not central to the federal or state, but remain in the community. Companies pay the business tax to pay, but not just tax. They benefit as well as infrastructure projects that are financed from the excise tax revenue. However, this is of course no reason to neglect tax planning opportunities for trade tax. Saving tips on the contrary, those who plan carefully, our subsequent business tax has been followed and casually tossed also take a look at the trade tax Implementing regulations can reduce considerably in practice, the business tax burden for the company.


Business tax saving , design options for the account management

So for example, allows the operating bank account of a company the entrepreneur to influence the final amount to be paid the business tax. Namely, if this company account, usually a so-called current account, the entire tax year is negative, this leads inevitably to an additional burden of the tax regime for interest on permanent debt. While a company is a permanent operation in the negative range-ranking account already financially punished by the most unpleasant high overdraft interest rates that interest in the collection of business tax tax office on site but this is unfortunately very little. Generally, in such a case, half the interest will not be booked as a loss, but pitched the contrary on the achieved trade income of the company.

This increases, of course, ultimately, the business tax payable. As with all rules, there are also a way that opens up design possibilities for the entrepreneur of account management: If the account is at least eight business days of the year in positive territory, is the troublesome long-term debt interest rate regime is completely omitted. However, if you try through creative accounting with sorrow and distress for these eight days a year to come may well expect a critical examination by the tax office. Such an event called Design abuse or tax avoidance, but in contrast to tax evasion, fortunately, not punishable by law. If the tax office criticized a design abuse, for the company concerned is therefore only normal levels of long-term debt interest deduction for wear.