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Exit Tax: Leave Germany before your business gets big

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Re: Exit Tax: Leave Germany before your business gets big

#481

Post by freyfogle »

jillesvangurp wrote: post #266
jacquesm wrote: post #246

Earlier quoted context omitted.

> this is a topic where LLMs can be helpful. That's probably the very last spot where you want to use an LLM, especially not in Germany. One single mistake can cost you a fortune, and you won't be able to spot the mistake because you're not an expert. LLMs could be used to prime you for conversations with an expert (but be prepared to be corrected on points of law and fact) but they are no substitute. Corporate law i…

I'm not saying use it blindly. But it helps going into discussions with experts, advisers, etc. with some preparation and knowledge. Worst case you are wrong and they'll correct you and best case you pre-empt some actual problems. And it's not like advisers, accountants, etc. don't make mistakes, overlook stuff, or sometimes work against your interests. It helps being a bit hands on. And LLMs make that a lot easier.…

C'mon Jilles, as we say in Germany "no risk, no fun"

Re: Exit Tax: Leave Germany before your business gets big

#482

Post by FirmwareBurner »

oaiey wrote: post #472
FirmwareBurner wrote: post #322

Earlier quoted context omitted.

All major German companies have been bleeding money and announcing layoffs like crazy in last years.

German companies are reorganizing themselves to compete in a new world order. Thanks to Trump and Putin. The German industry is build for a peaceful and globalized western world order which was established by the US after WWII and was demolished in the last years. So change is necessary. This will cost for a while and then work again.

>Thanks to Trump and Putin.

Nope, it's thanks to loosing competitiveness in some key sectors.

Trump and Putin are the convenient scapegoats but it's not Trump and Putin's fault the Xiaomi SU7 is faster and cheaper than a Porsche. It's not Trump and Putin's fault that Germany doesn't have a strong software/service industry. Germany's lack of innovation in new tech is finally catching up with them. Also Trump and Putin didn't force Germany to tie it's economy to Russian gas and invest in copper Internet instead of fiber, that was Schröder, a German. Trump was actually warning Germany about this being a risk and they laughed in his face. Who's laughing now?

Germany's economy is built on outdated businesses models around selling expensively manufactured niche products by expensive unionized workers protected by paperwork and bureaucracy that don't work in 2020s anymore when US owns the software industry and China, Korea and Taiwan the hardware industry who aren't bogged down by unions.

They've been outcompeted and now are looking for outsider to blame for their own short sighted mistakes where they chased a quick buck at all cost at the expense of the future.

Re: Exit Tax: Leave Germany before your business gets big

#484

Post by piker »

LadyCailin wrote: post #431
piker wrote: post #328

Earlier quoted context omitted.

It's not that it has punitive taxes for expats, it's just that as a US citizen, the US doesn't care where you live -- you're subject to US tax. It has rules for everyone that prohibit deferring income taxes which implicate non-US tax-opaque entities, but that's not so much of a capital gains concern as a timing issue. It's much simpler in many ways, although it creates its own issues with juggling tax treaties and re…

PFIC taxation, of which some pension accounts qualify, as well as all mutual funds and ETFs, is absolutely punitive, and does in fact charge taxes on unrealized gains. Even if you don't have any PFICs, or even owe taxes to the US, the fact that you need to pay an accountant ~$500+, just to file the taxes, is in my opinion punitive as well.

Well there are actual realizations in the ETF and mutual fund context, and the market has simply decided that structure still works for the commingled investments of US taxpayers. PFIC taxation I concede is a head-scratcher, but it's somewhat orthogonal to the capital gains issue. The big take home is that the US wants tax on all of your income, and it doesn't want you hiding any of that offshore. I'm an expat who deals personally with the last issue, and again I agree it's quite frustrating, but that's not what punitive means. That's just the type of frustration that arises when one is required to synchronize one or more complex systems.

Re: Exit Tax: Leave Germany before your business gets big

#485

Post by WalterBright »

amai wrote: post #470
WalterBright wrote: post #67

When businesses are fleeing, you're doing something very wrong.

Many business are just fleeing to avoid paying taxes.

Then the taxes are too high.

Businesses are also fleeing California, New York, etc., because of high taxes.

Re: Exit Tax: Leave Germany before your business gets big

#486

Post by ExpertAdvisor01 »

tcfhgj wrote: post #462
ExpertAdvisor01 wrote: post #441

Earlier quoted context omitted.

You are not exempt from trade tax. If you make more than 25k you have to pay it like anyone else.

thanks for confirming small businesses are exempt from trade tax and VAT

How are they exempt ? Thresholds != exemption

Re: Exit Tax: Leave Germany before your business gets big

#487

Post by tomschwiha »

tcfhgj wrote: post #254
ExpertAdvisor01 wrote: post #235

Earlier quoted context omitted.

What? Germany doesn't waive any taxes for small businesses

yes, they do https://finanzamt-bw.fv-bwl.de/,Lde/Startseite/Service/Was+i...

This tax is a simplification for very small businesses. With 2k revenue a month you are not even close being a small business. Not profit but revenue.

Re: Exit Tax: Leave Germany before your business gets big

#488

Post by CalRobert »

jwr wrote: post #477
CalRobert wrote: post #474

Earlier quoted context omitted.

Yes it does, basically all foreign etf’s are PFICs.

Oh this is even more terrible than I thought :-/ This means lots of additional reporting work plus 49€ per ETF yearly for tax preparers. US really hates expats.

It's not just the filing, the tax burden is heavy and complicated. You need to opt for one of three regimes, etc.

https://accountinginsights.org/how-does-pfic-taxation-work-f...

I live in Europe and contemplated writing a tool to analyze ETF holdings and buy the stocks individually with the IBKR API, but it's an expensive and error-prone approach.

Re: Exit Tax: Leave Germany before your business gets big

#489

Post by ExpertAdvisor01 »

4557377357 wrote: post #422
neves wrote: post #41

[flagged]

They should strive for the morality of the leftists that murdered 100 million people.

These numbers are wrong . These originate from the black book of communism which is poorly written book

Re: Exit Tax: Leave Germany before your business gets big

#490

Post by ExpertAdvisor01 »

johannesberlin wrote: post #113
neves wrote: post #41

[flagged]

As someone running a business in germany, they do everything but encourage small businesses. It is extremely painful to run a business in this country, it has archaic systems and the only reason I’m successful is because of surrounding european countries like Netherlands who handle 90% of my products with efficiency. I do not rely on most suppliers here as they are far behind in their systems (relying on phone calls,…

Yeah it took me almost 8 months to just get a vat id
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