Corporate solutions in Germany

Register a company in Germany with professional assistance. We cover various corporate solutions including accountancy and document preparation.

Taxes in Germany

Every company has to pay taxes, and the most important tax for businesses in Germany is income tax.

What are the taxes

Here are main taxes in germany:

Corporate income tax

Corporation tax is charged at a uniform rate of 15% and is then subject to a surcharge of 5.5% which results in a total tax rate of 15.825%.

Withholding tax

Payroll or withholding tax is income tax and other contributions that your employer withholds from salary. This will apply to the vast majority of expats in Germany and means your rate of income tax has already been worked out and paid for you. If this is your only source of income, you are not obliged to submit a tax declaration.

Personal income tax

By earning money in Germany, everyone is required to pay tax on income. The German tax system runs a progressive tax rate in which increases with taxable income.

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Tax system

Germany’s fiscal administration is divided to federal tax and state tax  authorities. The local tax offices apply to the latter. They administer the “shared taxes” for the Federation and the States and process all the tax returns.

The competent authority is the Federal Central Tax Office, which is also competent authority for various applications of tax refund from abroad. Since 2009, the BZSt gives an identification number for the tax to every taxable person.

Direct tax

Direct tax is one obligatory upon an individual person (juristic or natural) or property as distinct from a tax imposed upon a transaction.

Indirect tax

An indirect tax is a tax collected by an intermediary from the person who bears the ultimate economic burden of the tax. The intermediary later files a tax return and forwards the tax returns to government.

Net income

In any of the aforementioned groups, net income is calculated on all total earnings earned over the fiscal year and decreased by revenue-related expenditures for the same time. Losses from one of the seven types of basic income (except capital investment) should be entirely compensated against positive income from another category of income (exceptions which apply to other income').

German income tax rates

The income tax brackets for 2021 are as follows:

From To %
€0 €9.408 0%
€9.408 €57.051 14% – 42
€57.051 €270.500 42%
€270.500 + 45%

Business in Germany

Our company provides services for setting up a company in Germany. The specialists of our company have the necessary knowledge, experience, and qualifications. We can offer a consultation with taxes in Germany. In addition, we also provide business support, accounting, and other services necessary for your business. Our specialists have vast experience in this field of activity. We will be happy to help you successfully open a business in Germany.

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