Current Taxes

Asset differences between commercial and tax balance sheets at the level of the tax group member mean that the profit transferred to the tax group parent falls short of (deficit transfers) or exceeds (excess transfers) the tax balance sheet profit of the tax group member.

A distinction must be made here between pre-tax group excess and deficit transfers (section 14 (3) of the Corporate Tax Act) and tax group excess and deficit transfers (section 14 (4) of the Corporate Tax Act).

The tax group and pre-tax group asset differences of the tax group member calculated outside of Income Taxes (e. g. in Tax Balance) must be included in Income Taxes for the preparation of the tax return.

Therefore, according to section 14 (3) of the Corporate Tax Act, an active or passive balancing item must be created at the level of the tax group parent. 

The rows are used further according to their name. Here is a brief explanation:

• N-4.0: total of all pre-tax group excess transfers (total of N-4.1 to N-4.3).
• N-4.1: You can enter pre-tax group excess transfers in accordance with section 14 (3.1) of the Corporate Tax Act here, provided they do not come from the tax contribution account. If data are imported from Tax Balance, the corresponding import value is inserted as a proposed value in this row.
  A different assessment will be necessary if the excess transfer is taken from the tax contribution account or no issue according to section 8b of the Corporate Tax Act is to be created. In these cases, the proposed value is entered in rows N-4.2 or N-4.3 according to the tax treatment. The value in row N-4.1 must be adjusted accordingly.
  Values in row N-4.1 are transferred to the OG attachment and the KSt1F form of the respective tax group member for the preparation of the tax return. Furthermore, an automatically generated issue in accordance with section 8b (1) of the Corporate Tax Act with the corresponding capital gains tax will be triggered at the tax group parent by saving the assessment basis transfer.
• N-4.2: Pre-tax group excess transfers from the tax contribution account are entered here. The data entered here are further processed accordingly for the tax group member on the KSt1F form and in the OG attachment. No issue according to section 8b of the Corporate Tax Act is created in this case.
• N-4.3: Pre-tax group excess transfers that do not come from the tax contribution account are entered here. The entry is further processed accordingly in KSt1F and the OG attachment. In contrast to row N-4.1, no issue in accordance with section 8b (1) of the Corporate Tax Act with the corresponding capital gains tax is transferred for the tax group parent. If it is a tax-free distribution, a corresponding issue must be created manually in the §8b KStG (Corporate Tax Act, section 8b) workspace for the tax group parent (pre-tax group excess transfer without capital gains tax withholding).

Note for the Tax Return:

If it is a tax-free distribution, enter it in the tax return of the tax group member in row D11.2.5 of the GK attachment "Davon vororganschaftliche Mehrabführungen (ohne Einlagekonto; Anlage eines Sachverhaltes im Sinne d. § 8b Absatz 1 KStG auf Ebene des (Z)OT ohne KapESt und SolZ)“ ("Of which pre-tax group excess transfers (without contribution account; creation of an issue in accordance with section 8b (1) of the Corporate Tax Act at the level of the (I)TP without capital gains tax and solidarity surcharge)"). In this case, an issue according to section 8b of the Corporate Tax Act is automatically created for the tax group parent.

• N-5.1: Pre-tax group deficit transfers in accordance with section 14 (3.2) of the Corporate Tax Act must be entered here. They are processed accordingly on KSt1F and in the OG attachment for the respective tax group member.
• N-6: Tax group excess transfers in accordance with section 14 (4.1) of the Corporate Tax Act must be entered here. The values are included in the OG attachment and made available to the tax group parent by means of the TB transfer for processing in the OT attachment and on KSt1A.
• N-7: Tax group deficit transfers in accordance with section 14 (4.1) of the Corporate Tax Act must be entered here. The values are included in the OG attachment and made available to the tax group parent by means of the TB transfer for processing in the OT attachment and on KSt1A.
• MM_CHECK: The tax group and pre-tax group excess and deficit transfers are entered in detail in rows N-4.0 to N-7. The deviations between the commercial balance sheet and tax balance sheet (section 60 (2) of the Income Tax Ordinance), which were entered when determining the tax balance sheet profit, are validated with the values in rows N-4.0 to N-7 in the MM_CHECK row. The control value should be € 0.00. This validation is only for reconciliation purposes and does not affect any milestones or other value transfers.

Legal status for fiscal years ending after December 31, 2021:

• According to section 14 (4) of the Corporate Tax Act, an active or passive balancing item for tax group relationships must be consequently created at the level of the tax group parent.
• The tax group balancing items are developed for each tax group member and entered in the Current Taxes workspace in Income Taxes.
• As part of the system change to contribution solution, the tax group balancing items had to be dissolved and transferred to the investment account.

Legal status for fiscal years beginning after December 31, 2021:

• During the tax group period, deficit transfers are to be treated as contributions and excess transfers as return of contributions, which increases or decreases the investment book value of the tax group member at the tax group parent accordingly.
• Tax group excess and deficit transfers are entered as follows:
  • GK attachment, row D11.2.1: Mehrabführungen (Excess transfers)
  • GK attachment, row D11.2.2: Minderabführungen (Deficit transfers)