Cooperative in tax law

The trade and business cooperatives are associations with a non-closed number of members that promote the acquisition or economy of their members by maintaining a joint business operation (§ 1 GenG). Direct economic support is an important prerequisite for this.
In addition to the corporations, they belong to the legal entities; accordingly, they are subject to unlimited corporation tax in accordance with Section 1 I No. 2 KStG. However, agricultural and forestry cooperatives are exempt from corporation tax according to Section 5 I No. 14 KStG and non-profit housing cooperatives according to Section 5 I No. 10 KStG. If the requirements of Section 25 I KStG are met, the cooperatives can claim an allowance of € 13,498.

A special feature are cooperative reimbursements, which, under the conditions of Section 22 KStG, reduce corporate tax income as business expenses. They are distributed to members and non-members according to their turnover. The cooperative is also a commercial enterprise by virtue of its legal form in accordance with § 2 II 1 GewStG. It is therefore subject to trade tax, provided it is domiciled in Germany. The corporate tax exemptions are taken over in trade tax law

Was the explanation to "Cooperative in tax law"Helpful? Rate now:

Weitere Erklärungen zu Steuern