Module 120 min2353 wordsFree — no account
From the annual accounts to the distribution resolution: return, receipt and hidden profit distribution
The module’s worked examples, then cases to attempt before revealing their solution · 1 section · 231 words · 2 min
Practical case
What does excessive rent cost?
Since January 2026 Brenner Messtechnik GmbH has rented a warehouse from its sole shareholder for 3,000 euros a month. Comparable space in the area costs 2,000 euros. A tax audit treats the difference as a hidden profit distribution. By how much do the company's corporation tax and solidarity surcharge for 2026 rise, and what withholding tax is additionally at stake? Leave trade tax aside.
Hint: First work out the annual amount of the difference. Then apply the 2026 rate and the surcharge on that tax, and examine the withholding side separately.
Show the solution
The difference is 1,000 euros a month, or 12,000 euros a year. Under § 8(3) second sentence KStG it does not reduce income and is added back. At the corporation tax rate of 15 percent for 2026 this gives 1,800 euros of corporation tax, plus 5.5 percent solidarity surcharge, i.e. 99 euros, 1,899 euros in total. At the same time the amount is investment income of the shareholder under § 20(1) no. 1 second sentence EStG. On 12,000 euros, withholding tax at 25 percent would be 3,000 euros, plus 165 euros of solidarity surcharge. The GmbH is liable for these 3,165 euros not withheld under § 44(5) EStG, unless it proves it acted neither intentionally nor with gross negligence.
Answer: €1,899 more corporation tax with surcharge, plus a liability exposure of €3,165 in withholding tax with surcharge
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