Ebner Stolz

Tax Advice

Rule detrimental to highly liquid companies

The rule is the­re­fore cle­arly de­tri­men­tal to Cash GmbH's, since their pri­mary pur­pose is to ma­nage pri­vate as­sets that have been com­bi­ned with the com­pany’s as­sets.

Small and mid-si­zed com­pa­nies will also feel the ef­fects of the new rule, if they eit­her have a great deal of cash and equi­va­lents be­cause of their need for high li­qui­dity or have been able to set aside a so­lid fi­nan­cial cushion from a pro­fi­ta­ble busi­ness. The con­cern here is also that the next ge­ne­ra­tion ta­king over a com­pany will have to pay in­heri­tance ta­xes, which will ul­ti­mately de­prive the com­pany of its li­qui­dity.

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