Corporate Income Tax Act (Germany)
|Title:||Corporate Income Tax Act|
|Scope:||Federal Republic of Germany|
|Legal matter:||Tax law|
|Original version from:||March 30, 1920
( RGBl. I p. 393)
|Entry into force on:||April 15, 1920|
|New announcement from:||October 15, 2002
( BGBl. I p. 4144)
|Last change by:||
Art. 6 G of December 21, 2019
( Federal Law Gazette I p. 2875, 2884 )
|Effective date of the
|January 1, 2020
(Art. 10 G of December 21, 2019)
|Please note the note on the applicable legal version.|
It is currently valid in the version published on October 15, 2002.
The corporate income tax law is divided into six parts.
- First part: tax liability
- § 1 Unlimited tax liability
- § 2 Limited Tax Liability
- § 3 Delimitation of the tax liability in the case of non-legally competent associations of persons and estates as well as real communities
- § 4 Businesses of a commercial nature of legal persons under public law
- § 5 Exemptions
- § 6 Restrictions on the exemption from pension, death, health and support funds
- Part two: income
- Third part: tariff
- Fourth part: Contributions not made in the nominal capital and formation and assessment
- Fifth part: authorization and final provisions
- Sixth part: Special provisions for the transition from the credit system to the half-income system
First part: tax liability
Sections 1–6 regulate the tax liability for corporation tax , d. H. which persons are generally subject to taxation or are explicitly exempt from corporation tax with which income and under which circumstances.
Part two: income
The determination of the assessment base (taxable income) is standardized in Sections 7–22. The corporation tax law initially falls back on the income determination regulations of the income tax law. In addition, the law contains supplementary standards on shareholder debt financing (Section 8a), participations in other corporations (Section 8b), loss deduction (Section 8c) to determine the income in cases of tax unity and the special features of insurance companies.
Third part: tariff
The rate of a tax determines how the tax is calculated from the previously determined assessment base . The so-called tariff regulations usually regulate the tax rate and the allowance to be granted .
The corporate income tax rate is 15% (2008) of taxable income . Exemptions are only granted in corporation tax under the special cases of Sections 24 and 25. This mainly applies to mutual insurance companies .
Fourth part: Contributions not made in the nominal capital and formation and assessment
The contributions not made in the nominal capital are managed as a tax contribution account . As a result, the law differentiates between amounts that remain tax-free on repayment and profits that are taxed on distribution.