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§ 34a EStG - Einstieg in eine rechtsformneutrale Besteuerung oder Option für ein virtuelles Trennungsprinzip?

  • Claudia Wesselbaum-Neugebauer

    ()

    (Schumpeter School of Business and Economics Bergische Universität Wuppertal)

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    The paper addresses the question whether the preferential treatment of retained earnings according to section 34a EStG is suitable to achieve a comparable tax burden of partnerships and corporations. To calculate the tax burden on retained earnings requires the combination of the progressive personal income tax, the trade tax, which varies widely depending on the community and partnerships payments for interest, rent, leasing, and royalties, as well as the preferential tax rate. The resulting tax has to match the business tax rate of corporations, in order to tax retentions irrespective of the legal form. It turns out that, due to the specifics of the German local tax, the reduced tax rate has to be calculated individually. It can be shown that it is impossible to determine a reference value for all domestic companies. By introducing a "virtual principle of separation" (virtuelles Trennungsprinzip) we allow entrepreneurs to separate between the level of the firm and the ow ner of the firm, when retained earnings are to be taxed. The retained profit is taxed at the corporate income tax rate of 15 %, the solidarity surcharge of 5.5 % and the trade tax rate; once the profit is distributed, it is taxed at the progressive personal income tax rate of the partner.

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    File URL: http://elpub.bib.uni-wuppertal.de/servlets/DerivateServlet/Derivate-1514/sdp08009.pdf
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    Paper provided by Universitätsbibliothek Wuppertal, University Library in its series Schumpeter Discussion Papers with number sdp08009.

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    Length: 41
    Date of creation: Dec 2008
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    Handle: RePEc:bwu:schdps:sdp08009
    Contact details of provider: Web page: http://elpub.bib.uni-wuppertal.de

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    1. Huizinga, Harry & Laeven, Luc & Nicodème, Gaëtan, 2006. "Capital Structure and International Debt Shifting," CEPR Discussion Papers 5882, C.E.P.R. Discussion Papers.
    2. Ramb, Fred & Weichenrieder, Alfons J., 2005. "Taxes and the financial structure of German inward FDI," Discussion Paper Series 1: Economic Studies 2005,05, Deutsche Bundesbank, Research Centre.
    3. Homburg, Stefan & Houben, Henriette & Maiterth, Ralf, 2008. "Optimale Eigenfinanzierung der Personenunternehmen nach der Unternehmensteuerreform 2008/2009," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 29-47.
    4. Clausing, Kimberly A., 2003. "Tax-motivated transfer pricing and US intrafirm trade prices," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2207-2223, September.
    5. Kiesewetter, Dirk & Lachmund, Andreas, 2004. "Wirkungen einer Abgeltungssteuer auf Investitionsentscheidungen und Kapitalstruktur von Unternehmen
      [Effects of a flat rate tax on investment decisions and capital structure of companies]
      ," MPRA Paper 27177, University Library of Munich, Germany.
    6. Michael Broer & Nadja Dwenger, 2008. "Die kurzfristigen Steuereffekte der "Thesaurierungsbegünstigung" für Personenunternehmen: eine mikrofundierte Analyse," Discussion Papers of DIW Berlin 765, DIW Berlin, German Institute for Economic Research.
    7. Stefan Bach & Nadja Dwenger, 2007. "Unternehmensbesteuerung: trotz hoher Steuersätze mäßiges Aufkommen," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 74(5), pages 57-65.
    8. Jost H. Heckemeyer & Christoph Spengel, 2008. "Ausma� der Gewinnverlagerung multinationaler Unternehmen - empirische Evidenz und Implikationen für die deutsche Steuerpolitik," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 9(1), pages 37-61, 02.
    9. Homburg, Stefan, 2007. "Die Abgeltungsteuer als Instrument der Unternehmensfinanzierung," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 686-690.
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