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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 conditions 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.

Process flow

  • Send the application for the corporate income tax option (e.g. via "My Elster" or the application for companies domiciled abroad provided on the BZSt website) to the competent tax authority.
  • If necessary, attach the following documents
    • Copy of the resolution on the application
  • In addition, if the company's management is located abroad:
    • Proof that the company is subject to a tax liability comparable to German unlimited corporate income tax liability in the state in which its management is located.
    • Residence certificate of the competent foreign tax authority
  • If the tax authority assumes that the application is valid, you will usually receive a letter informing you of the future corporate tax number.
  • If the requirements are not met, you will receive a rejection notice.

Who should I contact?

In principle, the tax office responsible for the separate and uniform determination of the company's income is responsible; in the case of a company domiciled abroad that only generates income subject to tax withholding: Federal Central Tax Office (BZSt)

In principle, the tax office responsible for the separate and uniform determination of the company's income is responsible; in the case of a company domiciled abroad that only generates income subject to tax withholding: Federal Central Tax Office (BZSt)

Requirements

  • Eligible to apply are commercial partnerships as well as partnership companies within the meaning of the German Partnership Act (Partnerschaftsgesellschaftsgesetz) and comparable foreign companies.
  • The option is excluded for
    • Investment funds within the meaning of the Investment Tax Act,
    • sole proprietorships,
    • partnerships under civil law,
    • communities of heirs and
    • purely internal companies.
  • You cannot submit the application before the company is established.
  • If your company has its registered office in Argentina, Brazil, China, Costa Rica, Egypt, Gibraltar, Isles of Man, Jersey, Guernsey, Republic of Korea, Kuwait, Mexico, San Marino, Switzerland, Singapore, Sri Lanka or Venezuela, you must appoint a German authorized recipient.

Which documents are required?

  • Copy of the resolution on the application
  • If the place of management of the Company is abroad:
    • Proof that the company is subject to a tax liability comparable to German unlimited corporate income tax liability in the state in which its management is located (for example, current corporate income tax assessment notice or confirmation from the foreign state) and
    • a certificate of residence issued by the competent foreign tax authority, and
  • articles of association and/or articles of incorporation.
  • The evidence must be submitted to the competent tax authority together with the application.

What are the fees?

There are no costs involved.

What deadlines do I have to pay attention to?

Application deadline: At any time, no later than one month before the beginning of the marketing year from which the option is to apply.

Legal basis

Applications / forms

  • Objection

Appeal

Forms available: No
Written form required: Yes
Informal application possible: No
Personal appearance required: No
Online services available: Yes

Author

The text was automatically translated based on the German content.

Source: Zuständigkeitsfinder Thüringen (Linie6PLus)

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