In this contribution I will deal with the taxation of the share of the liquidation surplus and compulsory contributions to the Health Insurance Company ( the HIC ), or the Social Insurance Agency (the SIA ) for individuals. As a result of legislative changes, for example introducing tax licenses, can be expected to increase the number of companies that wind up of a company with liquidation. As the company has sufficient asset that excess of liabilities, then it can enter into liquidation. After the liquidation has been completed the remain asset so called share of the liquidation surplus should be distributed for the shareholders. According to the Income Tax Law § 3(2)(c) the subject to income tax is not,
c ) share of profit ( dividend ) paid on the profits of a company or cooperative …, the settlement of share , the share of the liquidation surplus of a company or cooperative ….
For the purpose of health insurance term dividend is wider than in the Income Tax Law and Act on Social Insurance, where the dividend is meant only the share of the profits. According to § 10b (1) (e) the Health Insurance Act ,the dividend is also
e ) share of profits paid on the profits of a company or cooperative …,the settlement of share , the share of the liquidation surplus of the company … ( hereinafter referred to as “dividends ” ) .
For the year 2015, when the company will pay the share of the liquidation surplus to the individual shareholder, the payer of dividends under § 11 (11) has to pay an advance of 14% of the maximum amount of € 49,440. The maximum limit is valid for the annual health insurance reconciliation. Maturity of the advance payment is until 8 days after the end of the calendar month in which the dividends are paid .