Taxation of the partners Sample Clauses

Taxation of the partners. ‌ Taxes on profits from partnerships and sole proprietors are levied directly on the partners. It makes no difference whether the profits were distributed as dividends to the partners or re- mained in the company. If the partners are natural persons taxes are levied in accordance with the progressive income tax table. The highest tax rate for income tax at present is 45 %. If the partners are non-residents they are sub- ject to limited taxation (beschränkte Xxxxxx- pflicht), which means only their German in- come is subject to income tax. If the shareholder is a company limited by shares with its registered office and/or man- agement outside Germany, it is also only sub- ject to limited taxation if it is partner in a part- nership, such as the OHG or the GmbH & Co. KG, with a permanent establishment in Ger- many or if it operates the same alone as a dependent organisation. The corporation tax rate at present is 15 %. Payable on top of the income- or corporation tax amount resulting from the above percent- age rates is presently a "solidarity surcharge" (Solidaritätszuschlag) of 5.5 % of taxes paya- ble which is used to finance the German reu- nification process.
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