Shareholder loans are a flexible financing tool for German GmbHs, allowing quick liquidity without formal capital increases. However, they carry significant risks during tax audits. The primary concern is whether the loan meets the arm’s
Setting managing director (Geschäftsführer) remuneration is a key task for every German limited liability company (GmbH). For controlling shareholder-managers, tax authorities scrutinize contracts rigorously to ensure payments are not classified as hidden profit distributions (verdeckte
