Tax balance

Definition of the tax balance sheet

The tax balance sheet is to be derived according to the tax regulations trade balance (Section 5 (1) EStG). In practice, this principle of relevance is often reversed in that a balance sheet is drawn up that is expected to be recognized by the tax office. The tax balance sheet is prepared annually for the purpose of assessing income tax and corporation tax. The legal bases are the tax code (especially Sections 140-148 AO), the Commercial Code (especially Sections 238-256 HGB), the Income Tax Act (especially Sections 4-7 EStG), the Corporation Tax Act (KStG) and the Trade Tax Act (GewStG).

Types of tax accounts

Income tax accounts

Income tax balance sheets that are prepared annually for the purposes of assessing income and corporation tax. It is used to determine the company's tax base as the profit that arises within the framework of tax regulations.

Special balance sheets

Special balance sheets show special business assets of co-entrepreneurs that cannot appear in the tax balance sheet of the company, but together with the total hand-held assets form the business assets of the partnership, e.g. B. a property that is wholly owned by a shareholder, which he leaves to the company for operational use.

Supplementary balance sheets

Supplementary balance sheets are required when a partnership is founded, a new partner joins or a change of partner takes place and the new partner has to spend more or less than is credited to him in terms of capital in the partner balance sheet.

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