Tax consultant for GmbHs (limited liability companies): 1.5% instead of high tax payments

  • Limited liability company taxation of 1.5% or less
  • No high tax payments upon sale or succession
  • Legally sound tax structure without dubious tax havens
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Thomas Breit

  • Expert for tax optimization
  • Experience with 3,500 mandates
  • Tax consultant since 2006
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Our services as tax consultants for GmbHs (German limited liability companies)

Lower tax rates on income (1.5% in the short term and 14% in the long term)

We can develop a strategy to reduce the taxes on your GmbH profits to 1.5% and less for a period of up to 7 years and 14% thereafter.

Tax rate of 1.5% on sale of GmbH shares thanks to favorable tax structuring

We can offer you a tax-optimized solution allowing you to enjoy a tax rate of just 1.5% when selling GmbH shares.

Reducing taxes on profit distribution

We can develop a concept according to which the profit distribution of your GmbH is taxed at a reduced rate of 1.5% rather than your usual income tax rate (maximum tax rates of 46% or 48% are usual!).

We do not offer the following tax consultancy services for GmbHs

Routine tax consultancy services without a specific project

We are specialized in working on specific projects and do not offer any routine tax consultancy services in financial or payroll accounting. In certain cases, however, we can prepare your annual financial statements in the scope of a certain project and prepare the corresponding tax returns.

Providing answers to individual unrelated questions

Our approach focuses on providing advice and structuring solutions for GmbHs with complex tax issues and a need for strategic action and does not cover providing answers to particular individual questions outside of a larger project.

Providing tax consultancy services to GmbHs with profit of less than EUR 500,000

We concentrate primarily on GmbHs with complex tax issues and a need for strategic action and do not provide support for GmbHs with profit of less than EUR 500,000.

How can you benefit from our tax consultancy services for GmbHs?

As the owner of a GmbH you can benefit from our specialized tax consultancy especially tailored to the needs of GmbHs. We develop individual and legally sound concepts for your GmbH, whether you are planning to restructure, sell or organize your succession. We can achieve real tax benefits for your company.

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Legally watertight solutions

Thanks to our expertise in complex tax matters we can devise individual solutions for your GmbH. We draw on extensive experience in legal fields such as tax law, corporate law, trade law, inheritance law, family law and law of obligations. Our concepts are legally sound, sustainable and tailored to fit your individual situation

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Close cooperation with external experts

When providing tax consultancy services to GmbHs we work very closely with a network of external experts. In addition to our own expertise, we have longstanding partnerships with specialized lawyers, notaries and other experts in various fields.

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More than 20 years of experience

Our wealth of experience enables us to design innovative solutions for optimally structuring your GmbH in terms of tax and succession planning. We do not content ourselves with standard solutions but use all the opportunities that German and European tax law have to offer.

Tax consultant for GmbHs (limited liability companies): Case study

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Situation at the outset

The managing director of a GmbH, Mr. H., plans to resign from the business and to hire a new managing director. Since the company uses several privately owned properties, these are automatically included in the business assets. Mr. H. is now facing the challenge of withdrawing from the business as the managing director without causing tax implications through the sale of the properties. Further, he would like to provide for his partner whom he is not married to.

How did we solve the issue?

In order to avoid tax implications, the properties were transferred to a family holding company (Familienvermögens GmbH & Co. KG). The existing GmbH was established as the subsidiary of the family holding company.

Mr. H. became the managing director of the non-operating parent company, while a new managing director was appointed for the operating subsidiary. This structure means that the properties are still closely connected to the company and are owned by the family company.

The properties were contributed to the family holding company on the basis of their carrying amounts from the 1940ies in order to avoid taxable gains. Furthermore, the properties were contributed by transferring them without consideration, thus avoiding taxable profit for the company.

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What advantages does this have?

EUR 2.2 million in income tax were saved

A new managing director was hired

The partner of Mr. H. became a shareholder of the family holding company and is thus provided for.

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Common questions regarding Thomas Breit Tax Services

What does the consultation cost?

My consulting services are billed by the hour (Thomas Breit: EUR 580 net/hour, employee: EUR 380 net/hour). The analysis and your objectives will determine which concept is the best fit for your needs. The total cost of implementing this chosen concept will depend on the actual amount of time needed for the implementation. An advance of EUR 20,000 plus statutory VAT is payable when the order is placed (equivalent to the minimum fee). This advance is enough to finance the smallest project. A cost-benefit analysis always comes before concept and implementation.

My fees are generally financed by the tax savings you achieve. The return on investment is between six months and no more than two years.

Additional costs may be incurred for court fees, notary costs and an expert for corporate law, depending on the project.

Can I work together with my own lawyer/notary?

We can of course work together with your usual partners. Should you need experts, we have a good network of corporate law experts and notaries.

Do I have to transfer my entire mandate to Thomas Breit Tax Services?

No, we only work on a project basis. We do not offer any financial or payroll accounting as we are highly specialized. In some cases, however, it makes sense for us to prepare your annual financial statements incl. tax returns for the years around the restructuring. We will then return these tasks to your tax consultant and draw attention to the particulars.

Has there ever been a case of poor advice being given?

No, never. 3,500 cases in 23 years – no slip ups.

How long does it take to develop a concept?

Developing a concept can take between three and eighteen months, depending on the project. In rare cases, it may take as many as three years to implement a concept.

Will you answer my other tax questions?

Yes and no.We are basically able to answer any questions concerning tax law. However, many of these questions can be answered just as well by other tax consultants with lower hourly rates, which is why we recommend you retain your usual tax consultant for such questions.

 

Why can’t other tax consultants do what you do?

My expertise covers every legal aspect of civil law, such as private law, company law, commercial law, international tax law, inheritance law and much more. In a way, you can compare it to a general practitioner who knows about the heart but is not able to perform heart surgery. I am the cardiologist among tax consultants and my specialty lies in providing comprehensive advice that goes beyond tax law itself.