The Real Estate SectorThe investment in fixed assets in Germany demonstrates the significance of the housing and real estate business. The gross fixed (tangible) assets invested in “Property and Housing” consists of more than seven billion euros, which corresponds to roughly half of the entire gross fixed assets. With about 4.5 billion in net fixed assets, this value, too, comprises approximately half of all net fixed assets. Of the overall economy’s gross value added, the housing and real estate sector with ten percent constitutes a powerful engine for the total German national economic output.
As significant as the real estate sector is for the national economy, it also goes hand in hand with the multitude of tax laws. Tax advice and assistance, in particular for real estate brokers and for estate management is an area of expertise with SKS Steuerberatung. The purchasing process already raises questions with respect to tax law, for example, how to deal with the property acquisition tax and the value added tax. Within the framework of administration, changes of use, the employment situation of the specific group or community of owners, construction work performed by companies or the delimitation of the acquisition and production costs have had a considerable impact on matter related to tax law. When it comes to selling, there are the transactions requiring trade tax considerations and profits or capital gains that are subject to income taxation.
The professional expertise of SKS Steuerberatung in the field of real estate business gives our SKS clients the absolute edge in all issues related to taxes and business management.
Construction Industry and Ancillary TradesTax authorities like to focus especially on the construction industry and the ancillary construction trades. Customs as the investigating authority along with the tax authority tend to demonstrate little leniency with the construction industry and ancillary construction trades when it comes to omissions, lacking documentation or unintentional errors in matters of taxation and business management. This affects all services related to the main construction trade such as the completion, the repair and rehabilitation, the maintenance, modification or the demolition of buildings and structures as well as all building-related activities of the ancillary construction trades. Special tax law related considerations to must be observed in order to comply with the high level of transparency the authorities expect to see in the construction industry.
Reverse charge taxation is applicable only for certain construction projects and these are separately defined in the new Section 13 b of the German Value Added Tax Act - UStG -(reverse charge procedure) and is not identical to the regulation regarding construction-based withholding tax or Regelung zur Bauabzugsteuer (Section 48 Einkommensteuergesetz - EStG, the German Income Tax Act). Also to be considered are the de minimis limits or trivial benefit thresholds - Geringfügigkeitsgrenzen, as well as the presence of certificates of exemption or the proper mapping or representation of the unfinished work.
You can build on the many years of experience on which SKS Steuerberatung bases the answers to your questions related to taxes and business management in the construction sector.
Automotive Business - Car DealershipWith its manufacturers and numerous businesses for new and used automobiles as well as all the repair workshops, the automotive industry is considered a key or leading industry in Germany. As such a key or core industry, the automobile business, in the used car dealership segment, is subject to special regulations in the area of tax law and business related requirements. Special record-keeping obligations must be observed for the Differenzbesteuerung - the tax to be paid on the positive difference between the purchase and the sale, i.e., the taxable margin. Taxes here must be calculated in accordance with the general tax rate. If Differenzbesteuerung is applied to intra-Community deliveries within the European Union, they do not qualify for tax exemption. The remaining tax exemptions under Section 4 UStG remain unaffected. In the business management application, too, there is room for flexible interpretation, for example, in the recording of changes in inventory or in cases of financing.
Our SKS clients can derive benefits from this specialisation SKS Steuerberatung can offer in the automotive sector.
Photovoltaic SystemsThe sometimes contentious Erneuerbare-Energien-Gesetz (EEG) - German Renewable Energies Act - is constantly undergoing modifications and reform. Whether it involves manufacturers and sales operations of photovoltaic systems or the end consumer, the complexity of this subject is on the increase. Just how profitable photovoltaic systems are for businesses, funds, private investors or the ordinary citizen with a solar power system on his private residence, depends to a not insignificant degree on the fiscal circumstances. A realistic accounting presentation, especially within the context of having partnerships build a solar park, should be undertaken by experts. That way, optimal results can be achieved for the purpose of reducing the profits with exceptional write-down charges, with the formation of an investment deduction and the proper formation of the provision for the obligation to reverse constructional changes.
With the specialists of SKS Steuerberatung in matters concerning photovoltaic systems, green energy and our SKS clients will enjoy the ecological status they deserve.
MusiciansFrom the point of view of tax law, musicians have a number of different options. Is what they do a question of self-employment or freelancing, a commercial activity and is the tax exemption for small businesses a possibility? If trade tax must be paid, when does the reduced VAT rate of seven percent apply and when is the regular tax rate of 19 percent applicable, which service is taxable and which services are completely tax-exempt?
The right way of approaching the taxation issue must be determined in as individual a manner as musicians and their activities are. Musicians rarely take advantage of the vast depreciation potential for claiming their instruments, business trips and concert attire or studio technology. The use of detailed profit and loss accounts can result in considerable tax relief especially in the case of musicians. SKS Steuerberatung advises, supports and assists musicians in matters relating to their individual tax situations with the same level of creativity in tax law as musicians pursue their artistic calling or passion.
Wholesale and RetailThe merchant status is closely linked with the accounting obligations under commercial law. It differentiates between the company’s legal forms and serves to inform the business partners regarding the economic situation. If sole traders and partnerships observe the provisions of sections 238 to 263 of the German Commercial Code, then for public limited companies the supplementary regulations of sections 264 to 335, which clearly limit the company’s accounting options and reporting, also apply.
Precisely because balance sheets act as a company’s business card, it is important to make the best possible use of the diverse structuring options. SKS Steuerberatung advises you comprehensively on the advantages and disadvantages that can result from advancing or postponing the balance sheet date, determines the accurate representation of the inventory and compiles a business management analysis of the stock and the cash flow. With a professionally compiled set of figures, weak points in the internal operations can be identified, optimisations can be recognised and the efficiency can be enhanced along with lowered costs.
SKS Steuerberatung possesses the expertise required for wholesale and foreign trade and uses it to ensure that our SKS clients can plan their business success based on an accurate set of figures.
The Manufacturing IndustryAs the producing sector where raw materials are processed, intermediate products and semi-finished goods are manufactured and end products are the result, the manufacturing industry is a complex entrepreneurial support structure. This means that timely, exact accounting procedures and accurate balancing processes are of vital importance in order to stay informed with an overview of the business management details.
The tax law related aspects are equally manifold. SKS Steuerberatung prepares an accurate representation of the unfinished assignments, exhausts all funding options for the acquisition of fixed assets, such as taking advantage of the GA-Zuschuss (grants under the Gemeinschaftsaufgabe Verbesserung der regionalen Wirtschaftsstruktur - joint task to improve the economic structure), identifies diverse EU subsidies and takes into consideration all possible provisions to optimise the tax circumstances.
With its know-how of the manufacturing industry, SKS Steuerberatung offers individual, flexible tax consultation for the various sectors of the manufacturing industry.