Private investment in a German LLC
October 21, 2019 | 35,00 EUR | answered by Steuerberater Bernd Thomas
Dear Sir or Madam,
I run a sole proprietorship in Switzerland and pay myself income from this to my personal German bank account (as I also live in Germany). Furthermore, I founded a UG in Germany last year. In 2018, I transferred 65,000 euros to the German bank account, of which 40,000 euros were deposited into the German company account for warehouse/office rent and machinery acquisition. Can I include or claim this private investment in my income tax return? Thank you for your response.
Dear questioner,
I am happy to answer your inquiry based on the information provided in an initial consultation on frag-einen.com. The response is based on the facts you have provided. Missing or incorrect information can affect the legal outcome. Unfortunately, the information provided is very limited, so I can only give a rough overview.
If you provide capital to your UG, it typically involves either the acquisition costs of a participation or a loan.
The acquisition costs of a participation will have tax implications later on, during liquidation or sale, while a loan will result in interest payments that may need to be declared.
Please note that contributions from the shareholder may need to be recorded on the UG's tax account.
Best regards,
Bernd Thomas
Tax consultant
Dipl.-Kaufmann (FH) Bernd Thomas, Tax consultant, Neustadtswall 85, 28199 Bremen, bernd.thomas@yahoo.de, VAT ID No. DE316948369, Member of the Hanseatic Tax Consultant Chamber Bremen, Registration number 111705, Professional liability insurance with R+V Allgemeine Versicherung AG, Mittlerer Pfad 24, 70499 Stuttgart, Insurance sum: 250,000 euros for each individual claim; Annual maximum benefit: 1,000,000 euros (for all damages in one insurance year), the professional regulations of the StBerG apply https://www.gesetze-im-internet.de/stberg/
