Draft Bill for a new German Investment Tax Act.
Dr. Thomas Elser
We are specialized in the taxation of investments for private wealth and institutional investors. A sophisticated investment strategy should consider the international taxation aspects of complex investment structures (for example investment funds, certificates and limited partnership interests), in particular in the area of alternative investments such as renewables, infra-structure, closed real estate funds, private equity, etc. Our experts have long-term experience and specialized technical skills re investment taxation, German CFC taxation and international tax law in order to render high-end tax advice.
We assist our clients in structuring the respective investments and provide comprehensive support regarding tax compliance. As part of the tax risk management we also analyze the opportunities to avoid unnecessary surplus tax payments, for example definitive withholding taxes.
Apart from our expertise in tax structuring and planning, the particular strength of TAXGATE consists in the efficient handling of complex tax filing obligations, especially in the context of international tax law including declaration works under the regime of the German CFC rules (Aussensteuergesetz) and the Investments Tax Law (Investmentsteuergesetz).
Our team assists German and foreign banks as well as funds and issuers of financial instruments to develop and review investment structures taking into account the specific requirements of their target clients.
We claim to be forward-looking partners designing and implementing tax optimized investments considering the challenging and changing legal environment in close cooperation with our clients.
- Tax due diligence of investments structures and strategies
- Optimization of participations by use of domestic and foreign investment vehicles and securitization solutions
- Consulting of funds in order to avoid tax downsides caused by the German Investment Tax Law, including reports according to sec. 5 InvStG
- Income determinations for domestic and foreign investment partnerships (sec. 18 InvStG, sec. 179, 180 AO)
- Tax return according to German CFC rules (sec. 19 InvStG; sec. 7 – 10 AStG)
- Application for tax-neutral repayment of equity according to German Corporate Income Tax Law (sec. 28 para 8 KStG)
- Withholding tax refunds from foreign tax authorities
- Amended tax returns
- Support in case of tax audits
The taxation of properties is one of the most complex areas in the German tax law. Our services include the whole life-cycle of real estate projects as well as any direct or indirect transactions.
Our experts also will highlight tax strategies for real estate transactions:
- Private and business assets
- Legal form and financing
- Property funds
- Current developments (for example, new Investment Tax Act from 2018)
- Tax optimization for reorganisation
- Transfers within the framework of anticipated succesion
ESTATE PLANNING & INVESTMENT CONSULTING
Especially for family-owned enterprises the inheritance tax can be existence-threatening. Entrepreneurs and wealthy individuals should prepare measures for tax-efficient succession planning sufficiently early. An important aspect of the succession planning is the accurate analysis of the recent and current family and tax facts as well as the international asset allocation considering the different asset classes.
TAXGATE services show the possibilities to reduce the personal inheritance tax burden for instance through anticipated succession, re-allocation of assets to utilize certain privileges of the inheritance tax law or by setting-up trusts or foundations and using life insurances. Moreover our advisers have long-term experience in considering international aspects including asset protection and relocation strategies.
Our advisors are experienced in considering international aspects, as well. Considering inheritance and gift tax, moving abroad can be an attracitve solution, but can cause immense expatriation taxation without actually realising a profit. This demands an accurate preparation and implementation of each step.
The complex and numerous investment alternatives in capital and other asset classes demands a complete and clearly arranged registration of all investments. TAXGATE services in this area provide a consistent estate controlling for all investments including a realtime analysis of all assets with respect to effecitive costs, profits and taxes. On that basis, we can offer you a proposal for strucutring the estate and draft an investing plan for e. g. building an estate from the regular income or restructuring the current assets tax-efficiently or with respect to profit or risk allocation.
TAXGATE investment consulting furthermore offers the evaluation of investment strategies, especially in building a tax-optimized security portfolio. We cooperate with wealth managers in reducing withholding taxes in order to improve the performance regarding cost and taxes.
Dr. Thomas Elser
The German accounting and tax regulations offer a broad variety of planning opportunities. However, tax planning we don´t understand only as one-dimensional tax optimization, but also as an important part of the risk management..
Our support covers especially the following:
- Legal form of operations and reorganization
- Accounting options
- Pension schemes
- Investment and financing
- Tax risk management including preparation for tax audits
INTERNATIONAL TAX LAW
Nearly every business nowadays has to meet the challenge of international aspects of the tax laws. How to expand the business outbound is one of the most important questions for growing companies.
Our approach is to generate sustainable solutions including tax optimization without aggressive tax planning, which can be harmful in the sense of corporate social responsibility and may end in a long-term tax dispute. Change management should take account of revision or unwinding certain structures.
- Outbound strategies
- Invest in Germany (inbound strategies and admin services)
- Tax returns according to German CFC rules (§ 18 AStG and §§ 179, 180 AO)
- International executive services
- European tax law and use of European Court Decisions
- Transfer pricing
TAX RETURNS AND ACCOUNTING
TAXGATE´s compliance team provide the following services:
- Financial accounting and statements
- Salary statements
- Compensations for executive and supervisory boards
- Reoganization accounting and corporate recovery
- Check of tax statements and legal means
- Tax returns
An overview of our services related to the setting up of a business in Germany is attached here.
An overview of our services for Chinese clients is attached here.
TAXGATE offers professional and strategical services to international investors and clients in the tax area. We are always focused on the successful implementation of your business expansion strategy.
We provide for international clients a number of services by our experienced team,among these are:
- Consider all tax aspects of an investment in Germany (acquisition, merger, branch, joint venture etc.)
- Advise on legal form of operations and reorganization
- Assist with incorporation of a new German entity
- Prepare tax returns according to German tax law
- Review tax aspects for executives locating to Germany
- Advise on European tax law and European tax court decisions
- Structure and document audit-proof transfer pricing concepts
Following the successful business set-up in Germany, our ongoing services are
- Financial accounting and statements
- Preparation of statutory and tax books
- Perform regular tax reporting to headquarter
- Implement and operate the German payroll
- Compensation-structures for executives and supervisory board-members
- Pension schemes, company cars, new employee benefits
- Investment and financing, incl. a new German bank account
- Tax risk management and preparation for tax audits
- Cross-border refund claims for VAT and withholding taxes
- Check of tax assessments and resolution of controversies with authorities
Besides German, the spoken and written languages in our office are English, French, Spanish and Italian.
TAX DISPUTES AND TAX COMPLIANCE
No one likes to have a dispute. Instead, it means an enormous gain of energy and an improved tax climate if we approach tax planning and compliance with an eye to avoid future conflicts. Of course we defend your rights vehemently and to the largest extend the legal and economic implications allow it.
In general, precaution in all matters seems the best approach. Sometimes though, as one says, the horse may already have left the barn. For both situations we offer our support through our professional expertise.
Our services in the above area:
- Guidance and support during tax audits
- Handling of appeals, from tax office up to Finance Court
- Handling of tax offences
- Subsequent tax declarations
- Risk analysis and check, enterprise specific
- “Early Alert”
- Task force upon investigations and searches
- Negotiations with tax authorities