What impact does the corporate tax reform have on my company?
February 28, 2024 | 40,00 EUR | answered by Siegfried Strauss
Dear tax consultant,
my name is Rolf Koch and I am the managing director of a medium-sized company in the mechanical engineering industry. In recent years, we have been able to grow steadily and increase our revenues. However, I am now concerned about the impact of the current corporate tax reform on my company.
The current situation of our company is that we have regularly generated profits and had to pay corporate tax accordingly. With the planned changes in the tax law, I fear that our tax burden could significantly increase, affecting our liquidity. This could have a negative impact on our investments, employee numbers, and our overall competitiveness.
My concerns stem from the fact that as a medium-sized company, we do not have the financial resources to handle large tax burdens. Therefore, I wonder what specific effects the corporate tax reform will have on our company and what measures we can take to best prepare for it.
Could you please provide me with detailed information on the planned changes and suggest possible solutions on how we can best adjust as a company? I would greatly appreciate your expert advice on this matter.
Kind regards,
Rolf Koch
Dear Mr. Koch,
Thank you for your inquiry regarding the planned corporate tax reform and the potential impact on your medium-sized company in the mechanical engineering industry. As a tax advisor with expertise in corporate tax, I would like to provide you with detailed information on this topic and suggest possible solutions.
The planned changes in the tax law can indeed have significant implications for companies like yours that regularly generate profits and pay corporate tax. One of the key changes relates to the corporate tax rate. It is known that the government is planning to increase the tax rate for certain companies to generate higher tax revenues. This could mean that your company may have to pay more taxes in the future, which could affect your liquidity.
To best prepare for these changes, I recommend conducting a detailed analysis of your current tax situation. Review your past profits and tax payments to understand how the planned changes could impact your company. Additionally, consider potential tax-saving opportunities, such as utilizing tax depreciation options or optimizing your company structure.
It may also be beneficial to consult with a tax advisor like myself early on to optimize your tax planning and minimize potential risks. An experienced tax advisor can help you optimize your tax burden and preserve your liquidity.
In any case, it is important that you familiarize yourself with the planned changes early on and take proactive measures to best prepare your company. I am available to support you in this process and provide expert advice.
Best regards,
Siegfried Strauss
