Tax consultant for holding companies: Set up a tax-privileged corporate structure
- Attain minimal tax rates of 1.5% and less by setting up a holding structure
- Create a structure that enables tax-optimized and flexible company transfers
- Legally sound tax concepts for all types of companies with profit of EUR 500,000 and more
Thomas Breit
- Expert for tax optimization
- Experience with 3,500 mandates
- Tax consultant since 2006
Our services as tax consultants for holding structures
Pay just 1.5% in tax upon disposal by setting up a holding structure
With a holding structure you can dispose of your company at the extremely favorable tax rate of just 1.5%.
Minimal tax rate of 1.5% by converting the profits of the next 7 years
The holding structure enables you to convert the profits of the next 7 years, making it possible for you to pay an extremely low tax rate of just 1.5%.
Reduce taxes on profit distribution to 1.5% (instead of your usual income tax rate)
By setting up a holding structure we can manage that profit distributions are subject to a reduced tax rate of 1.5% rather than the usual rate of 25%.
We do not offer the following services
We do not take start-ups as clients
As tax consultants for holding companies, we do not specialize in rendering our services to start-ups. Our concepts and consultancy services are usually aimed at established companies with a long-term perspective. We concentrate on structuring and optimizing holding structures over a period of about 7 years and developing the associated tax structuring and planning measures.
No “usual” routine accounting services
Our services as tax consultants for holding companies does not include preparing routine accounting documents. We specialize in tax structuring and consultancy in connection with the holding structure itself.
We do not offer our services to clients with profit of less than EUR 500,000
Our services as tax consultants for holding companies are aimed at companies with profit in excess of EUR 500,000. We recommend that companies with profits below this threshold contact another tax consultancy that is specialized on the needs of companies with lower profits.
How can you benefit from our tax consultancy services for corporations?
Creating a holding structure can bring an array of benefits, such as one single company management team, less trade tax or various tax structuring options.
We will carefully analyze your corporate structure and discuss with you in detail whether a holding structure is suitable for your company
Choosing the ideal type of company
A holding company can be established as any type of company apart from a sole proprietorship, including civil law partnerships (GbR), limited partnerships (KG) or GmbH & Co. KG (limited partnership with a limited liability company as the sole general partner). We will help you choose the ideal company type. Together, we will analyze the existing situation and your tax-related requirements to find the best possible type of company for your holding.
Less taxes on income (1.5% for 7 years, 14% thereafter)
Our optimized tax strategies enable the holding to benefit from a reduced tax burden of merely 1.5% for the next 7 years and a permanent reduction to 14% thereafter.
More tax structuring options when setting up international corporate structures
We support companies with international operations to develop and set up efficient holding structures, enabling them to use tax advantages at a global level. As experts in international tax consultancy, we know the national and international tax requirements.
Tax consultant for holding structures: Case study
Situation at the outset
Mr. K. is the sole shareholder and managing director of V-GmbH with approximately 10 employees and profit of about EUR 120,000. Mr. K. wants to keep open the possibility that his daughter may continue running the company, but would also like to consider the option of selling it.
How did we solve the issue?
Mr. K. asked us to plan a new corporate structure for V-GmbH. The main objective of the restructuring was to enable long-term asset accumulation and to pay the lowest possible tax rate for the current taxes on the company’s profits. Furthermore, the new corporate structure was supposed to allow for the tax-optimized and flexible transfer of the company to either the daughter or a potential buyer.
We set up a holding with two subsidiaries and V-GmbH was transferred to one of these subsidiaries, also a GmbH (limited liability company). The shareholding in V-GmbH was contributed to a holding partnership while maintaining the legal identity of V-GmbH intact.
What advantages does this have?
Tax structuring
Transfer into a holding structure
No waiting period applied to the shares in V-GmbH
Interim valuation approach
Tax exempt distribution potential
Subsequent sale of “New V-GmbH”
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.