Partnership groups
Many family-run, medium-sized companies and groups of companies in Germany are structured as partnerships. For a reason: under company law, this legal form takes much greater account of the close relationship between the company and the entrepreneur than is the case with corporations. However, this means that a taxation regime is applied that is only known to a limited extent outside of Germany. In the case of internationally active German partnerships, there is therefore a regular potential for conflict with foreign tax authorities.
Partnership structures offer significantly more opportunities to customise shareholder rights and separate asset spheres precisely. These are all elements that are of crucial importance for medium-sized companies that may involve several family members and generations. In addition to a company law structure for partnerships that is tailored to the specific individual case, special attention must also be paid to the tax implications, for example regarding the allocation of special business assets and the fundamentally transparent taxation of partnerships. Taxation becomes even more complex if - as is common in the SME sector - cross-border activities exist, e.g. in the form of permanent establishments or subsidiaries outside of Germany. For corporate groups with a group turnover of at least 750 million euros, there are also the requirements of country-by-country reporting, which will soon have to be published generally. Even if in many cases no additional tax burden might occur, the global minimum taxation must also be observed and regularly results in enormous data collection and processing efforts and extensive declaration obligations.
To create structures serving the interests of the company as well as its shareholders while also taking tax issues into account, advisors with an in-depth understanding of the legal and tax organisation of partnerships are required, as well as an assessment of the effects abroad. As a consultant for medium-sized companies with an interdisciplinary consulting approach, RSM Ebner Stolz supports partnerships in mastering these complex challenges. Thanks to our expertise in international tax law, both in Germany and via the RSM network in other countries, our consultants ensure that partnerships also avoid tax stumbling blocks in their cross-border activities due to any valuation mismatches in Germany and abroad.
Our services at a glance
Structuring of the company or group of companies
- Choice of legal form, considering economic, commercial and tax law aspects
- Development and implementation of a group structure, also taking into account economic, commercial and tax law aspects
- Support in drafting contractual relationships with shareholders and between Group companies
- Tax optimisation through tax group structures
- Review and adjustment of the company and group structure through reorganisation processes
Outbound consulting
- Examination of permanent establishment issues
- Structuring of foreign activities in the form of permanent establishments or legally independent units
- Examination and structuring of foreign activities under aspects of add-back taxation (more information can be found here)
- Examination of withholding tax issues in cross-border partnership structures
- Transfer pricing advice including benchmarking (you can find out more here)
Inbound consulting
- Structuring of foreign activities of foreign investors considering the special features of the taxation of partnerships in Germany
- Examination of optimisation options for existing inbound investments
- Examination of options for reducing or refunding withholding taxes abroad, considering the special features of partnership structures
- Support with the organisation of international transfer prices (you can find out more here)