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Taxes - Germany

Updated 07/2012

Legal requirements

Taxation depends on the legal structure chosen, the size of the income and turnover and whether it carries out an activity in one of the liberal professions. Various Acts cover taxation:

  • VAT Act Deutsch
  • Income Tax Act Deutsch
  • Trade Tax Act Deutsch
  • Corporation Tax Act Deutsch

Taxation system

Direct taxes

The main direct taxes for businesses are the following:

  • Income tax, which has to be paid by business owners;
  • Corporation tax, which has to be paid by a limited liability company, stock company and cooperative;
  • Trade tax, which is paid by anyone in business (with the exception of freelancers and specific occupational groups such as farmers).

Indirect taxes

The main indirect tax for businesses is the following:

  • Value-added tax [formerly turnover tax - (MWSt)], which has to be paid by all business owners (except small business holders).
 

Administrative procedures

Registration with the tax office

Submitting your tax declaration

Taxes are generally administered by the tax offices. The Form Management System (FMS) of the Federal Fiscal Authority offers online services and interactive forms for this.

Businesses are obliged to file provisional electronic declarations for payroll tax and VAT. Practical assistance is available from the ‘Elsterformular ’, free software for electronic tax declarations.

  • Service portal of the Fiscal Administration for Businesses (Elster) Deutsch
  • Elster Form Deutsch

The following deadlines apply for paying taxes:

  • Turnover tax: by the 10th day of the month following a fixed summary report period (month or quarter)
  • Income tax / corporation tax / trade tax: quarterly prepayment; tax declaration after end of calendar year
  • Overview: Taxes: Who pays, and when? Deutsch

Resources

The support database promotes information and training events on all economic, financial, technical, organisational, legal and fiscal problems associated with running or setting up a business.

  • Support database Deutsch

Check also the legislation on this topic in:

  • References

    Legal texts

    • Value Added Tax Act (Umsatzsteuergesetz - UStG): in the version promulgated on 21 February 2005 (BGBl. I p. 386), as amended by Article 2 Section 5 of the Act of 3 August 2010 (BGBl. I p. 1112). Deutsch
    • Income Tax Act (Einkommensteuergesetz - EStG): in the version promulgated on 8 October 2009 (BGBl. I p. 3366, 3862), last amended by Article 1 of the Act of 8 April 2010 (BGBl. I p. 386). Deutsch
    • Trade Tax Act (Gewerbesteuergesetz - GewStG): in the version promulgated on 15 October 2002 (BGBl. I p. 4167), last amended by Article 3 of the Act of 8 April 2010 (BGBl. I p. 386). Deutsch
    • Corporation Tax Act (Körperschaftsteuergesetz - KStG): in the version promulgated on 15 October 2002 (BGBl. I p. 4144), last amended by Article 2 of the Act of 8 April 2010 (BGBl. I p. 386). Deutsch
    • Tax Advisors’ Act (Steuerberatungsgesetz - StBerG): in the version promulgated on 4 November 1975 (BGBl. I p. 2735), as amended by Article 6(3) of the Act of 29 July 2009 (BGBl. I p. 2274). Deutsch
    • Federal Lawyers' Act (Bundesrechtsanwaltsordnung - BRAO): in the revised version published in the Federal Law Gazette Part III, Section 303-8, as amended by Article 1 of the Act of 30 July 2009 (BGBl. I p. 2449). Deutsch

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Further help

The Central Federal Tax Office maintains an information service on tax matters.

  • Central Federal Tax Office: information service Deutsch

Tax advisers help with tax law and operational questions as well as choosing the most suitable legal structure (from a fiscal point of view).

  • Finding a tax adviser Deutsch

Lawyers’ fees are laid down in the Federal Lawyers’ Code . Discretionary consultancy charges may also be negotiated. The same applies to tax advisers and their fees in accordance with the Tax Accountant Fee Ordinance.

  • Tax Accountant Fee Ordinance Deutsch
  • Federal Lawyers’ Code Deutsch

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