Module 122 min2821 wordsFree — no account
Add-backs, deductions and trade losses in detail
The module’s worked examples, then cases to attempt before revealing their solution · 1 section · 315 words · 3 min
Practical case
The printing firm with five kinds of expense
Weller Druck GmbH reports a trading profit of €380,000. It includes as expenses: loan interest of €150,000, leasing instalments for printing presses held as fixed assets of €250,000, leasing instalments for a purely electric delivery van of €10,000, rent for the production hall of €180,000 and fees for time-limited software licences of €40,000. Donations of €12,000 to a charitable association were also deducted under § 9(1) no. 2 KStG. The profit contains a profit share of €30,000 from a limited partnership stake. A trade loss of €50,000 from the previous year has been determined. Compute trading income after the loss deduction and the tax base amount.
Hint: Weight each no. 1 item separately before checking the allowance. Then treat the donation and the partnership share each through their pair of add-back and deduction, and round only at the very end.
Show the solution
Under § 8 no. 1 GewStG, interest enters in full (€150,000), press leasing at one fifth (€50,000), the electric van leasing at one fifth and of that one half (€1,000), hall rent at one half (€90,000) and licence fees at one quarter (€10,000). The sum is €301,000; it exceeds the allowance by €101,000, and one quarter of that, €25,250, is added back. The donation is added back under § 8 no. 9 at €12,000 and deducted again under § 9 no. 5, since it is below 20 percent of €392,000, i.e. below €78,400. The partnership share is deducted under § 9 no. 2 by €30,000. Relevant trading income: 380,000 + 25,250 + 12,000 − 12,000 − 30,000 = €375,250. The €50,000 shortfall is below the one-million-euro threshold and deducted in full: €325,250. Rounded down to the full 100 euros, that gives €325,200. The GmbH receives no § 11 allowance. At 3.5 percent, the tax base amount is €11,382.
Answer: Trading income after loss deduction €325,250, tax base amount €11,382
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