What are the tax implications of restructuring companies?
March 6, 2024 | 40,00 EUR | answered by Christian Ahlert
Dear lawyer,
My name is Dora Krebs and I am the managing director of a GmbH currently undergoing restructuring. We are planning to change our corporate structure to better support our business growth. I have some questions regarding the tax implications of this restructuring.
Currently, our GmbH has multiple shareholders, each holding different shares in the company. Now, we would like to redistribute these shares or possibly bring in new shareholders. I am wondering how this restructuring will affect us in terms of taxes. What taxes do we need to consider and what tax advantages or disadvantages could we face?
Furthermore, we are also considering establishing subsidiary companies or merging existing subsidiaries. Again, I am uncertain about how these steps could impact us from a tax perspective. Are there specific tax regulations we need to consider to avoid unexpected tax liabilities?
My main concern is to structure the restructuring in a tax-efficient manner to minimize our financial burden and establish our company on solid tax grounds. Therefore, I kindly ask you to provide me with an overview of the tax aspects of corporate restructuring and to suggest possible solutions that we can consider.
Thank you in advance for your support and advice.
Sincerely,
Dora Krebs
Dear Mrs. Krebs,
Thank you for your inquiry regarding the tax implications of restructuring your GmbH. A change in the company's structure can indeed have tax consequences that need to be considered in order to avoid unwanted tax liabilities and to optimize tax benefits.
First of all, it is important to mention that when restructuring companies, various taxes need to be considered. In particular, trade tax, corporation tax, and value-added tax are relevant. Depending on the type of restructuring, different tax consequences may arise.
If you intend to redistribute the shares of your shareholders or admit new shareholders, this can have tax implications in the form of trade tax, income tax, and possibly gift or inheritance tax. It is important to examine the tax consequences in advance and develop tax-optimized solutions to minimize the financial burden.
Care should also be taken when establishing subsidiary companies or merging existing subsidiary companies. Tax issues may arise here as well, especially regarding value-added tax and the tax treatment of profits and losses. It is advisable to consider the tax aspects within the restructuring process and create tax-optimized structures if necessary.
To make your restructuring as tax-efficient as possible, I recommend consulting with an experienced tax advisor or auditor who can assist you in tax planning. Together, you can develop suitable measures to take advantage of potential tax benefits and avoid unexpected tax liabilities.
I hope that this information has provided you with an overview of the tax aspects of company restructuring. If you have any further questions or require more detailed advice, I am at your disposal.
Sincerely,
Christian Ahlert
Attorney specializing in corporate law
