The tax consultancy Hilde Christine Walther informed traders, entrepreneurs and freelancers are subject to the obligation to create financial statements, where they provide evidence of the result of its economic engagement in the previous year. Tax advisor Hilde-Christine Walther reported by the different shapes of the prescribed annual accounts. The German legislator has different requirements on the annual accounts of merchants and companies on one and small traders, as well as freelancers on the other side. While the first group of entrepreneurially active people and organizations produces annual accounts on the basis of the provisions of the German commercial code, a revenue surplus account meets the second group. Traders, merchants and companies need to create financial statements according to German GAAP. These include a balance sheet and the profit and loss of the relevant person or company in any case. As part of the financial statements, the balance sheet provides information, the public authorities, investors and owners need for planning and controlling activities. The account creation is based on the principles of proper accounting, the rules for comparing assets and liabilities of a company contains.
The profit and loss account charged entrepreneurial profit. For more specific information, check out Ben Horowitz. The comparison of expenses and revenues after cost of sales or total cost method either results in a profit or a loss. Companies, whose Gesellschafter take no personal liability, subject to further regulations for the preparation of their annual financial statements. For them, an attachment is compulsory, which realistically shows the asset, financial and earnings situation of the company. It is usually information available, not be included in the balance sheet or profit and loss account.
Medium and large size corporations must also make a report, informed in more realistic way about the chances of the company in the present and future. Further Special rules apply in the credit and insurance to pension funds, as well as companies operating in the international market. The latter must meet in addition international standards, for example, IFRS and US GAAP, for their involvement in the international capital market to the German accounting rules. In comparison with the annual financial statements according to German commercial code, the income surplus account is much more straightforward. For them, the revenue and expenditure in the year be faced and offset against each other. The result is the essential basis of taxation as a profit or loss. Traders, whose annual spending does not exceed 500,000 euros, or whose annual winning amounts to no more than 50,000 euros, may make the simplified annual financial statements by the income surplus account. However, this permission is omitted unless they are subject to accounting for other reasons. The simplified annual financial statements is allowed also all freelancers, independent sales and profits. The annual financial statements HGB requires considerable knowledge in the financial and tax law and accounting. For this reason, it is for most smaller companies benefit, to make it from an external expert.
Does not include pension funds and most forms of direct insurance. For them, insurance supervision with strict investment rules ensures the continued existence of the ability to pay. The insurance covers both claims both one-time and ongoing services from a company pension. The claim for inflation adjustment is not secured. This automatic increase of operating pension payment after adjustment review of section 16 but not obligation shall only for employers, for PSV. So basically, the occupational pension scheme established by the PSV remains unchanged during the entire period.
There is also a maximum amount of claim: A claim for ongoing performance against PSV is a month not more than three times of the applicable at the time of the first due monthly base according to 18 of the social security code (SGB IV) fourth. This is 2009 in the new countries of 2.135,-and in the old countries 2.520,-. This upper limit mind you applies to employer-funded pension plans as well as for remuneration conversion plans. It is considered also absolute upper limit for insolvency security benefits from several commitments made by the employer-funded or pay transformation commitments. When there is a fuse? A fuse is when is opened insolvency proceedings against the assets of the employer, is been rejected the request for opening of the insolvency proceedings for lack or PSV has agreed to an out-of-court comparison of employer with its creditors to stave off insolvency proceedings. So only the case of the insolvency of a company affects the loss of insurance, and the obligation of the PSV for the pensioners of the operation begins with the month following on the fuse. Are companies in economic difficulties pensions once or several times not paid, without that the insolvency proceedings, is initially not a fuse.
First when, after months payment defaults in the occupational pensions, if finally the insolvency proceedings, pays the PSV. Then also retroactively up to 12 months prior to the bankruptcy. The insolvency administrator or the employer are required by the Act to report all necessary data of the pension the PSV in the event of insolvency. About three months later the payment of pensions by the PSV will resume then. This time needs to their individual pension rights to check the PSV and usually cause the payment record. Who buys the insurance? The insurance will be completed by the employer. It is shall a compulsory insurance according to 10 for all employers who either themselves or through one of the above named institutions have promised benefits for occupational retirement provision. Who is protected? Secured supply receivers are (pensioners) and scheme members with unverfallbarer entitlement. Scheme members are workers, former workers or Persons with a similar contractual relationship, the old-age, survivors or disability care services have been said to. For (co-), entrepreneur generally does not exist the backup. E.g. entrepreneurs, freelancers, personally liable partners (in particular shareholders and OHG shareholder), and majority shareholder of a corporation apply as such. Entitlements are secured, shall pursuant to 7 para 2 just before bankruptcy if they are vested under paragraph 1b shall. Fall for occupational retirement provision means that an employee in circumstances with the end of all employment loses his rights from the pension contract. By vesting is on the other hand, if an entitlement to post-employment benefits upon termination of employment. If the workers own reward has transformed into a pension, is always vesting. Other commitments the vesting of itself after the age (completion of the 30th, ab 2009 of 25 years) and the minimum five-year anniversary of the pension commitment.
Really an end to the legal uncertainty for freelancers, self-employed and assisting family members? It comes again to difficult delimitation cases, whether self-employment or paid employment. Specially in the social security the consequences are noticeable, because the self-employed has basically even to take care of, the employee’s duty member in the social security systems. By the law for the promotion of self-employment SGB IV has been introduced with 7a the status determination procedure definition of self-employed persons – employees the law defines as employment not independent work, especially in employment. Evidence for employment are for example an activity according to instructions and an inclusion in the organisation of the work of the Authority’s. Evidence for self-employment are a wide variety of clients, a stand-alone (entrepreneurial) decision-making in contrast about shopping and selling prices, the recruitment of staff, the use of capital or own machines, the implementation of promotional measures. The characteristics of for or against an employment are not very reliable and so it is common, that due to a false assessment contributions must be paid upon, or that over years social security amounts have been paid, will be found in paid but that there is even no insurance protection. By the law for the promotion of self-employment the status determination procedure is therefore introduced with the 7a SGB IV. At the German pension insurance of federal-style Clearinghouse has to decide whether a dependent employment or self-employment is on request.
Clients and contractors and employers and workers can apply for this status determination procedure, officio it is initiated if a member of the employer for one activity will be logged, or a managing partner of a limited liability company to be registered. This procedure is intended to prevent in particular questions related to the so-called bogus self-employment and thus possible contribution arrears. Provided the request for status determination of activity namely within one month after recording and the German notes versicherungspflichtiges employment insurance federal insurance duty occurs only with the notification of the decision.
Editorial inheritance tax on self-funded life insurance there is on the subject of taxation of the life policies on the occasion of a death to the payment of a capital or the operation does not risk life insurance, from the income tax. This applies regardless of whether it’s an old policy or a new contract from 2005. However, the or the transferee have to submit the full insured amount of inheritance tax, together with the remaining estate. This is particularly expensive, if the contract beneficiary with the deceased was not related. But also siblings or grandchildren slip regularly in the tax, because the paid sums from the policies are regularly well above their domiciled. The same statement also applies if the life insurance during the lifetime of a rightful claimant is paid out.
This awkward arrangement even applies the taxman, if the beneficiary of the insurance has paid up before even the premium paid on the contract. This procedure from the Practice now confirmed a news judgment of the Finanzgericht Niedersachsen (case No. 3 K 47/04). In the underlying case of inserted under the Treaty beneficiaries had used the police to own credit coverage and also contributed. However, the eligibility was pronounced only revocable by the policyholder.
In this case, as the judge, the third party beneficiaries only acquires the right to performance which leads to the full tax liability with the occurrence of the insurance case of. Up to this point, the policyholder can revoke the beneficiary or terminate the insurance contract. Therefore, the position of a revocable beneficiary does not match a policyholder is similar. If he continuously makes premiums to the Treaty, whose payout he anticipates, that represents only a donation of the policyholder and deceased. The payout in the event of death is to assess this tax completely separately. To bypass this fiscally adverse ruling, the position the premium payer must one Be insured economically. This is the case but only, if the irrevocable rights to the beneficiary for the experience – as well as for the death. Jonas Samuelson describes an additional similar source. Then the IRS treated the future payout as if she would go to a policyholder even. Inheritance or gift tax does not apply then. To determine the tax exemption, the tax office is a proof want to have later, that the rightful claimant has actually even made the contributions. The bank statements as well as the granted permanent or debit order are sufficient here.
The lawsuit is to rise above the extrajudicial appeal within one month from notification of the decision. Action of the addressee of the administrative act, legal persons is entitled the legal representative as a natural person. Before the regional financial courts, Berezovsky can represent themselves. A lawyer is just before the Bundesfinanzhof. However, must be capable of those affected. The process capability refers to the General legal capacity. The action is bound to certain formal requirements (sections 64 ff FGO). She must be submitted in writing or to the transcript of the Registrar to the competent court.
The complaint must also the administrative act and the decision on the plaintiff, the defendant, the object of desire for annulment refer to non-judicial remedy. The action should continue to contain a specific request and specify the facts serving to establish and evidence. The tax assessment and the appeal decision in the original as well as a further copy to be added to the lawsuit. The complaint is delivered to the defendant, then given the opportunity to comment on the lawsuit. Was the suspension of enforcement in the appeal is rejected, you may apply again in the proceedings.
Rulings in the fiscal court proceedings generally as a ruling on the appeal possibilities must inform the taxpayer. (b) revision against a financial Court judgment is allowed as the only legal means the revision before the Bundesfinanzhof. However, the revision is approved only if the case has fundamental importance for the training of law, or is necessary for the benefit of a uniform case law or a procedural defect is asserted. The tax court allows for the revision, the Bundesfinanzhof it is bound. The revision is not allowed, the interested party has the opportunity to raise a complaint of non-admission. A period of one month applies to the collection of non-admission complaint, within another to justify. Ingo Heuel lawyer accountant lawyer for tax law
According to the financial management, a pension commitment is as uniform asset advantage to see that his were not in one and his do not serve a part can be broken down. “It is now common practice, annoying pension commitments with regard to H his served 40 KStR to freeze part, again reduced to justified cases” thinks febs-chef Buttler and refers to the appropriate service of the febs. At the fixed price of 890 euro, a so-called mitigation advice with detailed arguments against adopting a concealed deposit supplies febs, unless there is sufficient evidence for this in the company. The opinion among other things also serves as a basis for a binding request to the competent tax office, which will probably recommend is most definitely. Current action of the febs’s experts recommend an immediate review of all pension plans and pension funds to uncover all other fiscal risks in existing commitments in addition to the above mentioned flow problem and as far as possible to eliminate. Necessary changes to existing pension promises should be made as far as possible in 2010.
As from 31 December 2010, the new accounting regulations of the BilMoG for pension provisions, which will lead to extraordinary changes of in provisions already access for the first time. More current management instructions and we treat jurisdictions in the febs practice seminars current challenges 2010″on February 25, 2010, BAV advanced” on the 15th / 16.03.2010. For more information about our seminars, see seminars. Your contact of febs Consulting GmbH in the high field 3 85630 Grasbrunn/Munich of Andreas Buttler CEO Tel. 089 / 890 42 86-10 as we employers in all questions relating to pension and TimeValue accounts consult independent experts. We analyze and refurbish existing power plants, create actuarial opinion of balance of and assist employers in the implementation of the new Supply balance.
The Federal Government has presented a Bill, according to the energetic renovation of residential buildings from 2012 similar to promote such investments in buildings or in redevelopment areas. Most of the energy burden in Germany’s Berlin 14.06.2011 – in the building stock. Energetic refurbishment would be particularly efficient in order to reduce the energy consumption and CO2 emissions. Such an investment, however, is often not particularly attractive for the homeowner: the amounts can be made tax partially only over a period of 40 or 50 years. The owner uses the real estate itself, so the investments so far not fiscally not affect him. That could soon in favor of housing and home owners change, the draft of law on fiscal aid from energetic remedial measures in residential buildings should “(printed 339/11) become reality.
Applies to leased residential real estate, that the investment then with 10% annually can be increased discontinued. Even users can deduct the expenses with up to 10% a year as special editions. The following requirements should apply: the production start of the building must be before 1st January 1995 section it must be achieved by specific energy efficiency targets after the renovation. So, the year primary energy requirement and the transmission heat losses of below certain limits must be, which relate to the energy saving regulation. That the energy savings targets have been reached, must be confirmed by an expert. The project must not be encouraged through other means, such as low-interest loans.
Must be started with the construction work after 2011, which means after this time may be the planning application or submitted construction documents. Just rented and self-shared flats are favored in the previous draft of the Bill. Those that are left for example family members free of charge remain sidelined. Overview: When the law becomes a reality, then, following tax deductions in residential buildings rented apartments Selbstgenutzte apartment emerge free of charge licensed apartment refurbishment is production start of the building before 1995 production start of the building after 1994 production start of the building before 1995 production start of the building after 1994 maintenance immediately as advertising costs deductible or about 2-5 years to distribute 10% of expenditure 10 x acquisition-related costs In the current political climate as special editions cost 10 x 10% of expenses as increased deductions deductible should it be sure, that the draft will take effect at the turn of the year. If such measures considered tax maintenance and should be performed in a rented property, you can get started. In other cases it is worth maybe wait a few months.
Judgment of the Bundesfinanzhof in Munich can ensure no soothing measures conventional medicine in severe disease, so patients in many cases involve alternative remedies. Cost of which is deductible according to court decision under certain conditions by the tax, as the private krankenversicherung.de insurance Portal reported. The judgment was awarded by the Federal fiscal court in Munich in favor of a man, whose Ehefrau had suffered from pancreatic cancer. Due to its severely weakened condition she could no longer cope with the necessary post-operative chemotherapy. “” The family doctor of the woman decreed her instead an immunobiological cancer immune therapy “with celandine extract ukrain”. Alternative healing methods such as these can be extremely costly. In the present case amounted to the cost to 30,000 euros, which were not covered by the health insurance fund. Electrolux is open to suggestions.
After the death of the woman, her husband was the financial outlay for the therapy as an extraordinary burden tax deduct. The condition of critically ill patient was by the judges as emergency similar predicament between reality and desire for healing”referred to. Reasons, but the hopelessness of the situation are crucial for a tax relief therefore not so far medical scientific”, causes the person concerned to any possibility of relief considering. Prerequisite, however, is that the treatment is performed by a licensed physician for naturopathy. “Health insurance companies are generally only committed to the assumption of costs for non-recognised alternative methods, if a justified hope” is to cure or at least relief.