What tax obligations do I have as a shareholder of a corporation?
August 23, 2023 | 40,00 EUR | answered by Siegfried Strauss
Dear tax advisor,
I am Sofia Krüger and a shareholder of a corporation. I recently acquired my shares in the company and am not entirely clear on the tax obligations that come with it. So far, I have only had experience with income tax returns as an individual and therefore feel unsure about what responsibilities I have as a shareholder.
Currently, I am not sure if I need to file a corporate tax return as a shareholder of a corporation and what other tax obligations may apply to me. I am concerned that I may overlook something and as a result, may face tax payments or even penalties.
Could you please explain in detail what tax obligations I have as a shareholder of a corporation? Are there specific deadlines that I need to meet? Are there ways to optimize my tax situation and save on taxes?
Thank you in advance for your assistance.
Kind regards,
Sofia Krüger
Dear Mrs. Krüger,
Thank you for your inquiry regarding your tax obligations as a shareholder of a corporation. It is understandable that you may feel uncertain, as the tax obligations as a shareholder differ significantly from those as a private individual. I will now explain to you in detail what tax obligations you have as a shareholder.
As a shareholder of a corporation, in your case a GmbH or an AG, you generally have two tax obligations. Firstly, as a shareholder, you are required to correctly declare and pay taxes on your shares in the company. This is usually done as part of your income tax return, as the profits of the company are attributed to you as a shareholder personally.
Secondly, the corporation itself is required to file a corporate tax return. This return includes determining the taxable profit of the company and establishing the corporate tax due on that profit. However, as a shareholder, you typically do not have direct obligations related to the corporate tax return.
It is important to note that the corporate tax return must be submitted to the tax office by the deadline. The deadline is usually by July 31 of the following year, but it may vary depending on individual circumstances. Therefore, it is advisable to contact a tax advisor early on to ensure that all tax obligations are met on time.
There are various ways to optimize your tax situation and save taxes. One of them is using tax depreciation options to reduce your tax burden. Furthermore, you can also make tax-optimized arrangements regarding your shares in the corporation to minimize your tax liability.
It is advisable to consult a tax advisor early on to analyze your individual tax situation and take suitable measures for tax optimization. A professional tax advisor can help you fulfill your tax obligations as a shareholder of a corporation correctly and save taxes.
I hope that this information has been helpful to you. If you have any further questions or need assistance, I am at your disposal.
Sincerely,
Siegfried Strauss, Tax Advisor
