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Retained-profit relief — is the § 34a election worth it?

The preferential rate is a deferral, not a gift: with the 25 per cent subsequent charge the cumulative burden reaches 46.19 per cent, above the 45 per cent top marginal rate.

2032 rules — verified on September 22, 2026Free, no account

Your result

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Sources and assumptions

Calculation assumptions

  • The election is made on the whole retained profit; § 34a (1) also allows a partial election.
  • Excludes the solidarity surcharge, which § 34a (3) also deducts from the amount carried forward.
  • Excludes retained amounts from earlier years, which are assessed separately and accumulate.

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This result is provided for information purposes only and does not constitute personalised tax advice. Check your situation with the tax authorities or a professional.