By a domicile company one understands a society in the German tax law after the iurisdiction of the Federal Finance Court (BFH), their statutory (also: statutarischen) seat abroad low taxed and not self-economically worked.

The tax treatment of domicile companies differs after whether it concerns tax on profits or value added tax.

Relating to the law on profits' tax applies: In Germany of a taxpayer must, in order to be able to set off payments to a domicile company as operatings expenditure, whom designate behind their standing receiver. In addition the Federal Finance Court judged: "A taxpayer payments carries out to one in Liechtenstein resident domicile company for achievements, which this cannot furnish for lack of own technical and industry-well-informed personnel, then is receiver ith S. of the AO 1977 not the domicile company, but that, to which this passed the funds on. "BFH, judgement from 10 November 1998, Az. I R 108/97, BStBl. 1999 II P. 121

In addition, as value added tax subject a domicile company is recognized, if it furnished supplies and achievements in Germany." see BFH, judgement from 21 April 1994, Az. V R 105/91, BStBl. 1994 II, 671, 672, and resolution from 9 July 1998, Az. V B 143/979, BFH NV 1999, 221

See also

• Mail box company

Sources

Related links

• Homepage of the Federal Finance Court

Articles in category "Domicile company"

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