Real estate taxation and taxation construction industry

When it comes to real estate issues, we are your best contact. In this field we have experience of more than 25 years and can call ourselves specialists who have handled all cases of real estate taxation.

Real estate is an important component of wealth accumulation for the generation of passive income, which is becoming more and more important due to the lack of investment alternatives. This can also be seen from the constantly rising prices in the real estate sector.

With the right structuring and choice of legal form for your investment, you can avoid unnecessary tax assessments and increase your returns through the right tax optimization.

Dr. h.c. Beata Baroth is a certified tax consultant for real estate taxation and real estate management.

• Consulting and support regarding the profit tax on real estate in private and business assets
• Consulting and support with regard to the fiscal particularities of real estate in sales tax, inheritance and gift tax, real estate transfer tax, second home tax and trade tax
• Consulting on the transfer and assignment of private real estate in the context of succession: usufruct / right of abode and recurring benefits and emoluments from an income tax perspective, transfer under conditional usufruct.

Our focus is particularly on:

• Tax-optimized transactions in the purchase and sale of real estate
  Within the scope of a Tax Due Diligence, we review the tax risks and effects of such a transaction. We focus on the optimization of real estate transfer tax consequences in order to minimize the tax burden. By drafting the appropriate tax contract clauses, you avoid potential liability traps. In addition, we help you with the purchase price allocation and the sales tax structuring, so that a maximum input tax deduction is maintained or made possible.

• It depends of the right input taxes when it comes to sales tax
  As part of the preparation of the monthly and quarterly VAT advance tax returns, we also examine your options for optimizing the input tax rate by opting for tax liability. Particularly in the case of mixed-use properties, an input tax allocation for incurred maintenance expenses is mandatory. We classify CAPEX-measures for you and prepare the necessary documentation of input services for a potential input tax adjustment. We tell you exactly when the reverse charge procedure applies to real estate-related services and when you need to obtain an exemption certificate.

• Income and trade tax – legally compliant declaration and structuring
  For the preparation of the annual income and trade tax declarations, we determine the income from renting and leasing or from commercial operations. We consult you on tax incentives and depreciation of real estate, taking into account the distinction between production and maintenance expenses. With regard to trade tax, there is a quick threat of tax liability for your rental activities if you fail to comply with certain regulations or if you engage in sales activities through commercial real estate trading. For real estate companies there is the tax privilege of the extended trade tax reduction, but this requires identification and tax structuring, among other things, for operating equipment.

We support your investment and increase your return as your best partner.

With our comprehensive knowledge and experience of the construction industry and taking into account the market requirements that are relevant to you, we can support you with reliable and meaningful information and figures.

With the Act on Curbing Illegal Activity in the Building Trade, a tax deduction was introduced upon receipt of construction services on buildings. Entrepreneurs as defined in § 2 of the German Value-Added Tax Act and public corporations receiving construction services are required to withhold 15 percent of the invoice amount and pay it to the tax office of the contractor performing the work. These withholding amounts are credited against the construction contractor’s taxes (withheld wage tax, own income tax and corporate income tax). However, tax withholding may be omitted if certain de minimis limits are not exceeded or the contractor can present an exemption certificate.

This is just one of many regulations that must be observed in the construction industry. Our team handling taxation of the construction industry is ready to support you in your activities.

We have more than 25 years of experience in the assignment of employees from abroad to Germany within the framework of the contract for work procedure.

Overview of our services:

• Tax optimization of project management
• Consulting od property developers on the specifics of accounting and sales taxation
• Settlement of construction wages including preparation of payment transactions
• Settlement of employee posting inbound case
• Registration and settlement of SOKA Bau
• Obtaining of all certificates such as exemption certificate and the certificate according to § 13b 5 (2) Value Added Tax Act (USt 1 TG)
• Valuation of services and partial services in financial accounting and the balance sheet
• Audit and monitoring of guarantee and warranty obligations as well as security retentions
• Monitoring, registration and auditing of the reverse charge procedure
• Advice on reporting minimum wages
• Calculation of tax deduction and registration, refund requests
• Permanent establishments for assemblies in comliance with double taxation agreements
• Monitoring of possible under-tariff remuneration

Legal structuring, drafting and negotiation of contracts, particularly

• Architect and engineer contracts
• General contractor agreements, general contractor agreements
• Contracts for work and services and contracts for work and materials
• Employee leasing contracts
• Subcontractor agreements
• Financing and collateral agreements

Tax support for construction and planning law consulting

• Claim management
• Taxation of joint ventures
• Optimization of business management systems, e.g. with regard to costing, construction site profit and loss accounting or billing for services rendered and, in particular, supplementary management
• Concepts of profit realization in long-term contract manufacturing