Optimale Eigenfinanzierung der Personenunternehmen nach der Unternehmensteuerreform 2008/2009

Stefan Homburg, Henriette Houben and Ralf Maiterth

Hannover Economic Papers (HEP) from Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät

Abstract: Effective from 2008, Germany's top marginal income tax rate rises from 42 to 45 per cent. However, sole proprietorships and partnerships can opt for a preferential tax rate of 28.25 per cent for retained profits (§ 34a EStG-E). If they do so, profits are taxed again upon distribution. Using corporate finance tools, we analyse in detail whether or not the option is favourable. However, these tools do not suffice since the new tax regime is too complicated. Costs of capital cannot be calculated explicitly any more, but we derive exact implicit characterizations. Concrete numerical examples are also provided.

Keywords: Business Taxes; German Income Tax (search for similar items in EconPapers)
JEL-codes: D92 H25 M10 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2007-05
New Economics Papers: this item is included in nep-pbe
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Citations: View citations in EconPapers (18)

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Journal Article: Optimale Eigenfinanzierung der Personenunternehmen nach der Unternehmensteuerreform 2008/2009 (2008)
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