Tax advice for partnerships
German Partnerships such as GbR, OHG, KG are a popular legal form for entrepreneurs. But their tax treatment is complex.
Companies, family offices, funds and individuals regularly use partnerships as a legal form for their activities. For companies in Germany, the legal form of a partnership has a long tradition. Due to their great flexibility (no minimum contribution, relatively formless incorporation, highly customizable articles of association), individuals also regularly use partnerships, e.g. as holding companies.
This applies not only to Germany: Partnerships are the legal form of choice even beyond Germany.
Compliance & Filings
In Germany, partnerships are tax transparent. We are familiar with all the issues that this entails. Our compliance services cover the preparation of tax returns and annual financial statements of partnerships for companies, family offices, funds and private individuals — regardless of the context. This also applies in particular if the partnership in question is located abroad. Foreign companies are to be classified for German tax purposes as part of the so-called “type comparison”. We have experience with typical foreign legal forms (in particular US-American LLC) and know the practice of financial administration. In collaboration with your local consultants, we are happy to ensure a seamless transition from local accounting to German tax compliance.
Our services:
- Classification: Classification of foreign companies and complex issues
- Tax Returns: Preparation of all declarations (uniform and separate declarations, business tax return, sales tax return)
- Private Equity and Private Debt: Experience in particular with domestic and foreign private equity and private debt funds as well as infrastructure and real estate projects
Commercial Partnerships and German Trade Tax
Partnerships are only subject to trade tax if — for German tax purposes— they comprise a commercial enterprise. This differentiation is often difficult, especially in a real estate context. This issue also often becomes contentious. Here, too, we are happy to assist with our expertise in tax disputes and represent you before the authorities and, if applicable, the tax court.
We are familiar with the typical challenges and typical use cases:
- Classification of partnerships into asset managing or commercial
- Real estate holdings and real estate funds
Tax due diligence
When companies, family offices, funds and private individuals consider acquiring a company in the form of a partnership, tax due diligence must take into account the particularities of this legal form. We are familiar with typical topics and guarantee a focused and efficient due diligence process here as well.
This applies in particular to fund investments: We have experience from auditing dozens of limited partner investments in alternative investment funds in the form of shares in partnerships across the globe.
Our services:
- Due diligence reports for buyers, sellers or, for fund investments, as a limited partner
- Red Flag Reports for time-critical projects
- Second Opinions resp Expert opinion, in particular for critical issues (e.g. sales tax or income tax organizations)
- M&A: Seamless integration of our work into the M&A process
- Extensive Experience: Experience with all relevant industries and deal structures
- Side Letter Negotiations with the general partner
Your contacts
Please reach out in case you have any questions.
Marius Siemen
Marius Siemen advises on all aspects of German and international tax law. His work focuses in particular on the global investments of institutional investors and private clients across all asset classes. He has extensive experience with projects involving German investors in the United States as well as in the Asia‑Pacific region. Another key area of his practice is the representation of clients in tax disputes: from tax audits to administrative appeals and litigation, as well as the support of clients in criminal tax proceedings.
Lukas Conrady
Lukas Conrady advises investors, corporations, entrepreneurs, startups, and private clients on matters of national and international taxation. A key focus of his work lies in ongoing tax compliance—particularly the preparation of annual financial statements and tax returns, as well as the support of tax audits, including administrative appeal proceedings. He has in‑depth expertise in M&A, private equity, and real estate transactions, assisting clients with tax due diligence and the tax implementation of subsequent reorganizations. In addition, he advises on the taxation of crypto assets, including the classification and reporting of trading, staking, and lending activities.