Are there any exceptions to corporate tax liability?
July 9, 2022 | 50,00 EUR | answered by Benjamin Hohenadel
Dear Tax Consultant,
my name is Leonie Hartmann and I have been running a small GmbH for several years. In the past few months, I have noticed that my profits have increased, which means that I also have to pay more corporation tax. However, as I am facing some financial challenges, I am wondering if there are any exceptions to the corporation tax liability that could apply to my company.
Currently, I am already paying my corporation tax regularly, but the additional payments are increasingly burdening me and I am worried about the financial future of my company. I am looking for possible solutions to reduce my tax burden and continue to successfully lead my business.
Therefore, I would like to ask if there are any special regulations or exceptions that could help me reduce my corporation tax burden. For example, are there specific investments or expenses that are tax-deductible and could lead to a reduction in corporation tax? I would be very grateful for your expertise in this area and would appreciate specific suggestions on how I can optimize my tax burden.
Thank you in advance for your support.
Kind regards,
Leonie Hartmann
Dear Mrs. Hartmann,
Thank you for your inquiry regarding corporate tax and possible exceptions or regulations that could help you reduce your tax burden. As a tax advisor specializing in corporate tax, I am happy to assist you in this matter.
First and foremost, it is important to know that corporate tax is a tax imposed on the profits of corporations such as your GmbH. The amount of corporate tax depends on the profits generated by your company. So, if your profits have increased, it is normal for your corporate tax burden to increase as well.
However, there are indeed ways to optimize and reduce your tax burden. One possibility is to claim certain investments or expenses as tax deductible. For example, investments in fixed assets such as machinery, vehicles, or real estate can be deducted for tax purposes. These depreciations reduce your profit and therefore your corporate tax burden.
Furthermore, there are various tax incentives and subsidies that your company may qualify for. These include, for example, the promotion of research and development, the promotion of environmentally friendly technologies, or regional support programs. These can help reduce your tax burden and strengthen your company at the same time.
It is important that you thoroughly explore the tax options available and, if necessary, seek professional help to optimize your tax burden. As a tax advisor, I am here to assist you and help you identify the tax measures that are suitable for your company.
I hope this information is helpful to you and I am available for any further questions. I wish you success in optimizing your corporate tax burden and continuing the success of your business.
Best regards,
Benjamin Hohenadel
