What tax reductions are available for corporate income tax?
February 7, 2022 | 50,00 EUR | answered by Mia Köhler
Dear tax consultant,
my name is Yvonne Hentschel and I run a small GmbH in the service industry. In recent years, we have generated profits, which are now also reflected in the form of corporation tax. I have heard that there may be tax reductions that we could take advantage of to reduce our tax burden.
Our GmbH is currently in a growth phase where we want to invest and expand. However, due to the corporation tax burden, I see the risk that our capital for further investments could be limited. Therefore, I am looking for ways to optimize our tax burden and create financial leeway for the future.
Could you please provide me with more information on potential tax reductions for corporation tax? Are there specific regulations or benefits that could apply to our company? What steps would we need to take to take advantage of these and how could we benefit from them?
I would be very grateful if you could assist me in assessing our tax situation and suggest possible solutions.
Sincerely,
Yvonne Hentschel
Dear Ms. Hentschel,
Thank you for your inquiry regarding corporate tax and potential tax reductions for your GmbH. As a tax advisor, I can assist you in optimizing your tax burden and provide you with information on potential benefits.
First and foremost, it is important to mention that there are indeed various ways to reduce corporate tax burden and create financial leeway for investments. A commonly used measure is the utilization of tax depreciation options, such as the investment allowance or tax incentives for research and development. Through these measures, you can decrease your profits and therefore reduce your tax burden.
Furthermore, there are also special regulations and benefits tailored to specific industries or company sizes. For example, small and medium-sized enterprises can benefit from the so-called "corporate tax reduction for small corporations," which provides a reduced tax rate of 15% on a portion of the profits.
In order to take advantage of these benefits, it is important that you have your tax situation analyzed precisely and, if necessary, submit the appropriate applications. As a tax advisor, I can assist you in identifying the measures that are suitable for your company and implementing them.
Overall, there are indeed ways to optimize your corporate tax burden and create financial leeway for your investments. I am available for a personal meeting to discuss your individual situation and provide you with concrete solutions.
Best regards,
Mia Köhler
