A judgment (Az: B 12 RA 1/04 R) pronounced on November 24, 2005 by the Federal Court of social security (Bundessozialgericht) in Kassel plunged the leaders of limited liability companies into turmoil. Giving a narrow construction to a 1999 law aiming at fighting against “false independent work” (Scheinselbstständigkeit), the judges had estimated that all independent managers of limited liability companies should pay off the contributions for public retirements from now on if they did not...
Germany: the managers of limited liability companies will remain exempted from retirement contributions
The independent managers of limited liability companies (GmbH) are seriously relieved. In the future, they should go on being exempted from the obligation of retirement insurance, as the Ministry for Employment and Social Affairs confirmed it, on April 4, 2006. (Ref. 06331)
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