Investment through a domestic corporation
General principles
A (domestic) corporation is subject to both trade tax and corpo-
rate income tax plus solidarity surcharge. Shareholders, whether
individuals or corporations, are taxable on the profts distributed
to them. A number of different forms of corporations are avail-
able.
The choice of the most appropriate legal form depends on a
number of factors, including employee co-determination rights,
the structure of the management and supervisory bodies, equity
funding requirements, credit rating, reporting and audit require-
ments, incorporation costs, etc.
EU Forecast
euf:ba18f:184/nws-01