{"id":9638,"date":"2018-05-14T09:08:00","date_gmt":"2018-05-14T07:08:00","guid":{"rendered":"https:\/\/tunal-stb.de\/concealed-profit-distribution-not-a-gift-from-the-corporation-subject-to-gift-tax\/"},"modified":"2023-07-21T09:34:07","modified_gmt":"2023-07-21T07:34:07","slug":"concealed-profit-distribution-not-a-gift-from-the-corporation-subject-to-gift-tax","status":"publish","type":"post","link":"https:\/\/tunal-stb.de\/en\/concealed-profit-distribution-not-a-gift-from-the-corporation-subject-to-gift-tax\/","title":{"rendered":"Concealed profit distribution not a gift from the corporation subject to gift tax"},"content":{"rendered":"

Concealed profit distribution – gift taxable – donation – corporation<\/strong><\/p>\n<\/div><\/div>[vc_single_image image=”5499″ img_size=”full”][ultimate_heading main_heading=”Verdeckte Gewinnaussch\u00fcttung keine schenkungsteuerpflichtige Zuwendung der Kapitalgesellschaft ” alignment=”left”][\/ultimate_heading][vc_separator style=”shadow”]

Allowances inter vivos<\/h2>\n

may be subject to gift tax if they are “freely given”, i.e. in particular free of charge (cf. \u00a77 par.1 Inheritance Tax Act). Up to now, the question of whether a free gift can also exist if a corporation (GmbH) makes excessive payments to its shareholder (e.g. in connection with salaries or rent payments) has been disputed.<\/p>\n

The Federal Fiscal Court<\/h2>\n

had already ruled in this regard that such hidden profit distributions for income tax purposes do not<\/strong> constitute gifts subject to gift tax. This is justified by the fact that the distributions of a corporation are not made freely, but rather are based on the corporate relationship<\/strong>, regardless of whether the distributions are made openly or concealed. However, the tax authorities have so far rejected a general application of this case law.<\/p>\n

In several recent decisions<\/h2>\n

the German Federal Fiscal Court has now confirmed the view that hidden profit distributions are generally not subject to gift tax as free gifts from the company. This also applies if, for example, the GmbH does not pay the excessive remuneration to the shareholder himself, but to a person close to<\/strong> him (e.g. spouse). The prerequisite here is that the shareholder (managing director) participates in the contract between the company and the related party, as in this case the payment is also made with regard to the shareholder’s rights under the company agreement.<\/p>\n

The court<\/h2>\n

However, it also expressly points out that (gratuitous) benefits to a related person can, however, be assessed as gifts from the shareholder<\/strong> himself to the related person that are subject to gift tax. Since the shareholder waives<\/strong> future distributions or makes a corresponding withdrawal<\/strong> as a result of the (hidden) profit distribution, he suffers a reduction in assets which, in turn, leads to an increase in assets for the related party; this can trigger gift tax.<\/p>\n

 <\/p>\n

(Further comments & information on this can be found in our information letter 05\/2018 under the item 3.)<\/strong><\/em><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/section>

[vc_masonry_media_grid grid_id=”vc_gid:1526281701440-a5512ba2-cd05-4″ include=”5553,5552,5551,5550,5549,5548″][bsf-info-box icon=”Defaults-exclamation-circle” icon_size=”32″ pos=”left”]\n

A) Newsletter bestellen<\/strong><\/h2>\n

Immer gut informiert sein, verpassen Sie keine Neuigkeiten mehr! Mit unserem Newsletter-Service erhalten Sie stets aktuelle Informationen rund um unsere Kanzlei und dies bequem per E-Mail (z.B. ge\u00e4nderte \u00d6ffnungszeiten usw.). Selbstverst\u00e4ndlich k\u00f6nnen Sie sich jederzeit problemlos vom Newsletter wieder abmelden. Am Ende eines jeden Newsletters finden Sie einen entsprechenden Abmeldelink. Geben Sie dazu einfach Ihre E-Mail Adresse ein…<\/p>\n

<\/div>\n

B) Informationsbrief abonnieren<\/strong><\/h2>\n
\n

Bequem per E-Mail. Zur Anmeldung einfach Ihre E-Mailadresse eingeben und schon bekommen Sie die aktuellste Version unseres Informationsbriefes zugesandt.
\nIhr Vorteil bei Registrierung: Sie erhalten diesen immer aktuell zum Anfang<\/strong> eines jeden Monats.<\/strong><\/p>\n

<\/div>\n

C) Blog via E-Mail abonnieren<\/strong><\/h2>\n
\n
\n

Geben Sie Ihre E-Mail-Adresse an, um diesen Blog zu abonnieren und Benachrichtigungen \u00fcber neue Beitr\u00e4ge via E-Mail zu erhalten.<\/p>\n<\/div>\n<\/form>\n<\/div>\n[\/bsf-info-box]<\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"Concealed profit distribution – gift taxable – donation – corporation [vc_single_image image=\"5499\" img_size=\"full\"][ultimate_heading main_heading=\"Verdeckte Gewinnaussch\u00fcttung keine schenkungsteuerpflichtige Zuwendung der Kapitalgesellschaft \" alignment=\"left\"][\/ultimate_heading][vc_separator style=\"shadow\"]Allowances inter vivos may be subject to gift tax if they are “freely given”, i.e. in particular free of charge (cf. \u00a77 par.1 Inheritance Tax Act). Up to now, the question of whether...","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[700,829,535],"tags":[831,835],"class_list":["post-9638","post","type-post","status-publish","format-standard","hentry","category-corporations","category-hidden-profit-distribution","category-information-letter","tag-corporation","tag-hidden-profit-distribution"],"acf":[],"_links":{"self":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts\/9638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/comments?post=9638"}],"version-history":[{"count":14,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts\/9638\/revisions"}],"predecessor-version":[{"id":9809,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts\/9638\/revisions\/9809"}],"wp:attachment":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/media?parent=9638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/categories?post=9638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/tags?post=9638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}