Tax Tax group is a means of structuring the tax legal form (tax influences on the choice of legal form). It exists when a domestic corporation (body) is financially, economically and organizationally integrated into another domestic company (parent company). Financial integration means that the controlling company must have a majority of the voting rights. The mere intention of diversification is sufficient for economic integration.
Organizational integration presupposes organizational precautions that ensure that the persons in charge of the parent company can also enforce their will in the body (e.g. through the personal identity of the managing directors). Tax unity can exist for trade tax, corporation tax and sales tax. In the case of corporation tax, with effect from 2001, only a financial integration is required.
The legal consequence of a trade tax unity is that the trade income of the body is attributed to the parent company. This aggregation has an impact on the total amount of trade tax if the organ's trade income is negative; it then leads to a reduction in the trade tax burden.
Legal consequences do not arise in the presence of a corporate unity alone. In addition, a profit transfer agreement within the meaning of Section 291 (1) AktG must be concluded between the parent company and the executive body. Thereafter, the organ must undertake to transfer its profits to the parent company; the parent company must undertake to assume the losses of the body. The result of the corporate income tax burden often changes only slightly for the entire group.
An exception is given for tax losses of the body, which are deducted from the income of the body owner in the year in which the loss occurs. This can result in a tax advantage. Before concluding a profit transfer agreement, however, it should be carefully checked whether this possible tax advantage is not bought too high by the fact that the controlling company has to be responsible for the loss of the institution under civil law. Long periods of loss of the body can also endanger the body owner when a profit and loss transfer agreement is concluded. The existence of a VAT group means that sales between the companies of a group of companies become non-taxable internal sales.
value added tax therefore does not arise for such sales; Corresponding to this, the company receiving the service is also not to Input tax deduction justified. The creation of a sales tax group changes the total sales tax burden on the group