What special regulations apply to corporate tax for start-ups?
October 22, 2023 | 40,00 EUR | answered by Benjamin Hohenadel
Dear tax consultant,
I am Lilli Voss and I recently founded a start-up specializing in the development of innovative technologies in the field of renewable energies. Now that I am faced with tax issues, I have some questions regarding corporate tax that are relevant to my start-up.
As a start-up company, I am facing various challenges and specificities that need to be considered in relation to corporate tax. I am unsure about how the taxation of start-ups compares to established companies and what tax benefits or obstacles I may encounter.
I am also interested in whether there are special regulations or tax relief options for start-ups and how I can take advantage of them. Since I am not fully knowledgeable about corporate tax as a founder, I am concerned about the tax handling of my company and I want to ensure that I fulfill all tax obligations correctly.
Could you please provide me with more information on the special regulations and tax aspects for start-ups related to corporate tax? Are there any potential tax reliefs or incentives that my start-up could benefit from? How can I ensure that I fulfill my tax obligations as a founder of a start-up properly?
Thank you in advance for your support and advice.
Sincerely,
Lilli Voss
Dear Mrs. Voss,
Thank you for your inquiry regarding corporate tax for your start-up company in the renewable energy sector. As a tax consultant with expertise in this area, I can provide you with more detailed information on the tax aspects for start-ups.
First of all, it is important to know that start-ups are generally not taxed differently than established companies. Corporate tax is the same for all companies and currently stands at 15% on the profit generated by the company. However, there are some tax peculiarities that could be relevant for start-ups.
An important regulation for start-ups is the so-called "loss carryforward option". This means that losses incurred in the first years after founding can be offset against future profits. This can allow start-ups to achieve tax benefits, as they often do not generate profits in the initial years.
Furthermore, there are certain subsidies and tax reliefs that start-ups can benefit from. For example, there is the possibility to deduct research costs for tax purposes or benefit from the so-called "promotion for young companies". This is a tax benefit for companies that are still in the first years after founding.
To ensure that you fulfill your tax obligations as the founder of a start-up properly, I recommend that you consult a tax consultant early on. A tax consultant can support you in tax planning, assist you in preparing tax returns, and ensure that all tax regulations are complied with.
In summary, while start-ups are generally taxed like established companies, they can still benefit from special regulations and tax reliefs. It is important to address the topic of corporate tax early on and seek professional advice in order to make optimal use of tax benefits.
I hope that this information has been helpful to you. If you have any further questions, please do not hesitate to contact me.
Sincerely,
Benjamin Hohenadel
Tax Consultant
