argomento: News del mese - Diritto Internazionale e Comunitario

Articoli Correlati: Germany - taxation - partnership

On March 24, 2021, the German government approved a bill concerning the taxation of companies. The draft provides for the right for partnerships to opt for corporate income tax. This law should enter into force in the fiscal year 2022, but the application must be submitted to the fiscal authority before the start of the fiscal year. Partnerships and their partners should, regardless of the ongoing legislative process, promptly assess whether they wish to exercise this option. The option model is of interest to all partnerships whose investment and cash flow planning is based on internal financing through retained earnings. For mixed partnerships that regularly pay their profits to partners, it is usually more advantageous to maintain transparent taxation. In addition, partnerships that intend to withhold profits will have to carefully examine the advantages and disadvantages of exercising the option.