Management investments: Three million euros tax-free | EUROtoday

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FFor the plaintiff, it was an worker shareholding that turned out to be extraordinarily profitable: When his firm supplied shares in a so-called Manager KG to chose executives as a part of a deliberate IPO, he took half in 2006 with a deposit of 25,000 euros. A yr later, after the profitable itemizing on the inventory change, he obtained shares value three million euros. The tax workplace handled the distinction between the share worth and capital funding as taxable wages. Wrongfully, because the Federal Court of Justice determined in a judgment introduced on Tuesday.

The plaintiff doesn’t should pay any taxes in any respect on the revenue from his participation in Manager KG, mentioned VI, who’s liable for payroll tax points. Senate clear. The tax workplace didn’t see another choice than taxation by way of wages. At that point, gross sales proceeds similar to these achieved by the supervisor weren’t but taxed as revenue from capital belongings. This is totally different now. Nevertheless, participation fashions stay tax-attractive. While employment revenue is taxed at a most charge of as much as 45 %, a flat charge of 25 % withholding tax plus solidarity surcharge have to be paid on capital revenue. The judgment now introduced by the Federal Court of Justice has appreciable financial significance for managers who profit from administration investments.

https://www.faz.net/aktuell/finanzen/managementbeteiligungen-drei-millionen-euro-steuerfrei-19549504.html