Apply for corporate income taxation for partnerships and partnership companies

Service Description

Commercial partnerships and partnership companies have the option of applying to be treated like a corporation for income tax purposes.

This option can be exercised for the first time for fiscal years beginning after December 31, 2021.

When exercising this option, the commercial partnership or partnership will be treated like a corporation for income tax purposes, and its partners will be treated like the non-personally liable partners of a corporation.

The option is excluded for investment funds within the meaning of the Investment Tax Act as well as for sole proprietorships, partnerships under civil law, communities of heirs and purely internal companies.

The Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt) is responsible for companies domiciled abroad that exclusively generate income subject to withholding tax on investment income or withholding tax on the basis of Section 50a of the German Income Tax Act (Einkommensteuergesetz, EStG) and for which income tax is deemed to have been paid in accordance with Section 50 (2) Sentence 1 EStG or corporation tax in accordance with Section 32 (1) KStG as a result.

If you do not receive a rejection notice, the competent tax authority assumes that the option is effective. As a rule, you will receive notification that a corporate income tax number has been issued.

If the requirements for the option are continuously met, you do not have to submit a new application for the following fiscal years.

The option is terminated upon application or when the conditions for the option cease to exist.

Source: Zuständigkeitsfinder Thüringen (Linie6PLus)

No competent authority found