Earlier quoted context omitted.
thanks for confirming small businesses are exempt from trade tax and VAT
How are they exempt ? Thresholds != exemption
thresholds are inherently in play when you want to restrict exemptions to small businesses
Exit Tax: Leave Germany before your business gets big
501–510 of 567 posts
Re: Exit Tax: Leave Germany before your business gets big
#502Earlier quoted context omitted.
Capital gain tax is stupid anyway. It's one of the first tax that should be removed. You can tax business at home by land/revenue/resources usage/ip protection taxes. As it is owners in different jurisdictions pay a different (or sometimes no) tax on selling shares. Selling itself is something you want to encourage, not discourage. It's a pointless tax that penalizes exactly the things you want to encourage. You thin…
It is at least not wildly regressive like consumption taxes are. It would be better to tax IP protection, inheritance, resource use and land only but realistically if we get rid of capital gains the tax burden will land squarely on wage earners doing all of the actual work who are already taxed more than the people who own their productive output.
> who are already taxed more than the people who own their productive output.
Top 5% by income in USA pay 60% of income tax. It is NOT the run-of-the-mill wage earners who may most, not even close.
Re: Exit Tax: Leave Germany before your business gets big
#503Re: Exit Tax: Leave Germany before your business gets big
#504Earlier quoted context omitted.
> You can not keep any assets like company or house there! Alternatively, simply keep both the house and company in Germany. No exit tax since, thanks to that house, you haven't technically exited, right?
You could technically do that but then you’d have to keep paying taxes to Germany on your income in the other country. And the other country will consider you a resident too and will want a chunk of that…
Welcome to americans' reality! It's actually more humane than the way US treats its overseas citizens - no onerous PFIC/FATCA, and you have an option to divorce the tax system while still keeping your passport.
Double taxation should be taken care of by tax treaties. Usually you'd pay the maximum of the two tax rates in total, with your current residence country getting first dibs.
Re: Exit Tax: Leave Germany before your business gets big
#505[dead]
Re: Exit Tax: Leave Germany before your business gets big
#506Earlier quoted context omitted.
why you acting like its not true now??? it still economic powerhouse (at least best on continent)
All major German companies have been bleeding money and announcing layoffs like crazy in last years.
Not just Germany…it’s a worldwide contraction. The real economy is shrinking. The financial economy is the only one growing.1% of the world owns 43% of the assets. All the growth numbers you hear have nothing to do w real people. Here in the USA salaries adjusted for inflation have not risen.
Re: Exit Tax: Leave Germany before your business gets big
#507Germany is probably the last country on earth you want to found a business in. Bureaucracy Bureaucracy Bureaucracy and these damn workers rights, arrrr those evil Germans!
Not as bad as greece!
Re: Exit Tax: Leave Germany before your business gets big
#508Earlier quoted context omitted.
> Lack of confidence in future economic improvement. Germany is still the 3rd biggest economy worldwide. If you want to stay in Europe (as per your other comment) and future economic improvement is your biggest concern, I don't see a benefit in moving anywhere else.
"still " is the keyword. No intention to walk into disaster with eyes wide open.
How do you intend to avoid this disaster you see on the horizon?
Re: Exit Tax: Leave Germany before your business gets big
#509Earlier quoted context omitted.
Yes but it assumes the whole thing. Just because someone is willing to buy a chunk for X doesn't mean there are enough buyers for all chunks at this price.
How can you only see one side of the transaction? Just because somebody is willing to sell a chunk for X doesn't mean there are enough sellers for all chunks at this price. The agreed price for the last executed sale is the de facto value of anything traded. This has been a fact for hundreds of thousands of years by now.
The whole point is that it isn't.
Liquidity availability is big part of finance.
In your specific example of other side - yes - just because someone who needs to sell a chunk for reasons like an emergency, retirement or consumption needs doesn't mean they are happy to sell the rest of the chunks at that price.
Market based valuations only work in case of very high liquidity publicly traded assets and only if you don't own a significant %.
This makes your argument weaker, not stronger though. If there isn't liquidity market based valuation doesn't work.
>>This has been a fact for hundreds of thousands of years by now.
It isn't and never was. Liquidity was always big part of it.
Re: Exit Tax: Leave Germany before your business gets big
#510Earlier quoted context omitted.
It's an exit taxes, but as far as I'm aware, it simply taxes you on all assets as if you disposed of them the day you leave. That doesn't seem particularly unfair. If you can image a scenario where someone buy Apple at $1, and it's now worth $1,000. They just leave Canada, pay no tax, then sell in a low tax jurisdiction. However, it can be a massive pain in the ass for illiquid assets or assets you don't intend to se…
> it simply taxes you on all assets as if you disposed of them the day you leave. Same thing in the U.S. but I think the first $800 or so is exempt.
EDIT: I meant $800K