tax on company distributions

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Does anyone know how company distributions affect taxes?

If I receive distributions from a company I have shares in, how is that taxed? is it taxed?

 

thanks

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Whose taxes?  Yours?  The company's?  What country or countries?

 

If distributed to you, the tax consequences to you will depend on who and where you are when you receive the distribution the nature of the "company" and what, when, how and why it was distributed.

 

All of your other income and a myriad of other facts and factors may also influence the result.

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I have shares in a US company.

If I receive a distribution from the company, Im wondering what effect it has on me and my taxes if I am resident in Germany. Which I currently am.

 

Im deciding if it's most beneficial to stay a resident, or to move elsewhere and visit Germany instead.

My income is inconsequential, as I do minimal freelance work to cover expenses, and it is below the tax threshold. The distribution will most likely be more than I earn from working.

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Still way too little information.

 

What kind of "company":  a publicly traded regular "C" corporation (e.g. IBM), a REIT (real estate investment trust), a publicly traded partnership, or maybe a Regulated Investment Company, an LLC, an S-Corp?

 

ASSUMING:

1.  you are single, and

2. it is a "regular", plain vanilla distribution of corporate earnings from a publicly listed company, you will report it as income not subject to Abgeltungssteuer withholding on your German Anlage KAP, and

3.  the distributed amount plus all other investment income (Kapitalerträge) in the year of distribution does not exceed €801, then . . . .

 

your German tax will be zero.

 

 

 

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The tax rate applicable to investment income above 801€ is the lower of 25% or your normal income tax rate (plus Soli in both cases), so if you are below the tax threshold anyway, you won't pay any tax.

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