Tax group

What is the tax group?

The tax group is the dependence of a legal person as subsidiary from another company, e.g. B. a parent company. A corporation can be subordinate to another company in such a way that it is only part of the business of the other company. As a result of the integration, there is a legal and actual subordination of the controlled company to a higher-level company, which is referred to as the controlling company.

organizational interdependence

The organizational interdependence has different consequences in sales tax law and corporation tax law:

In VAT law, the associated companies are treated as one company. In the system with Input tax deduction and with a uniform tax rate, the sales tax unity remains without any negative consequences. This is different with the income tax unity.

Corporation tax law

In corporate tax law there are e.g. B. according to § 14 KStG special regulations for the taxation of affiliated companies. In the event that a company is so dependent on another company that it no longer has a will of its own, it becomes an organ. of the parent company.

Profit transfer agreement

In addition to a profit transfer agreement, a financial participation of more than 50% and the incorporation of the subsidiary into the controlling company are prerequisites. In the case of a tax group, the tax results are initially determined separately for the individual companies. Then they are assigned to the parent company. This procedure means that the profits and losses in the context of corporation tax as well as trade income and trade capital can be immediately offset against each other for trade tax.

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