Managing Director and Shareholder of a German GmbH – Rights, Duties, and Pitfalls

Reinhardt – Wirtschaftsprüfung | Steuerberatung

GmbH-Gesellschafter-Geschäftsführer – Rechte, Pflichten und Stolperfallen

The position of a shareholder-managing director in a GmbH is unique: he is an organ of the company, but also a contractual partner of his own GmbH. This gives rise to special tax, social security and employment law issues.

1. tax treatment

Although he is an entrepreneur in the economic sense, the managing partner is treated as an employee for tax purposes. This means that his remuneration is subject to income tax. The GmbH can deduct the salary as a business expense if it is appropriate and meets the requirements of an arm’s length comparison. Unclear or retrospective agreements entail the risk of being assessed as a hidden profit distribution.

Special care must be taken with company car arrangements, bonuses and pension commitments. These are only recognized for tax purposes if they are set out in writing, customary for third parties and agreed in advance. Errors in the design can quickly lead to tax disadvantages.

2. special features of social security law

A major sticking point is the question of whether there is a social security obligation. The decisive factor is the actual scope of influence over the GmbH. Controlling shareholder-managing directors are generally exempt from social security contributions. In the case of 50/50 shareholdings or the absence of a blocking minority, on the other hand, there is a regular obligation to pay social security contributions. In view of the complexity, a status determination procedure is often recommended.

3. position under labor law

Unlike employees, GmbH managing directors do not enjoy automatic protection against dismissal or maternity leave. There is also no entitlement to parental leave. Such rights must be agreed individually in the employment contract. The same applies to continued payment of salary in the event of illness or regulations on care periods.

Conclusion

For shareholder managing directors, it is essential to keep an eye on the special interfaces between tax, social security and employment law. Clear contractual regulations and regular legal reviews are the key to avoiding disputes with the tax authorities, social security institutions or shareholders.


Disclaimer: Die in diesem Beitrag dargestellten Inhalte dienen der allgemeinen Orientierung und ersetzen keine individuelle Beratung. Jeder Einzelfall ist anders und erfordert eine spezifische rechtliche und wirtschaftliche Bewertung. Trotz sorgfältiger Recherche übernehmen wir keine Gewähr für die Richtigkeit, Vollständigkeit oder Aktualität der Angaben.

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