NewsCase StudiesEvents

The FrankfurtRheinMain region - Taxes

Also in the news...

Croatia: providing services and travelling for business

Guidance for UK businesses on rules for selling services to Croatia.

Prime Minister and Bill Gates launch £400m partnership to boost green investment

The strategic partnership with the Breakthrough Energy Catalyst will mobilise £200 million of private sector funding over 10 years.

What is the Superbonus and how to benefit from it, even if you donít pay Italian income tax

Itís recent news the Superbonus 110% has been recently extended to 2023, and this is great if you intend to renovate your home. Superbonus 110% isnít the only available tax break on house renovations; find out how you can save on your taxes whilst renovating your Italian home.

VAT DIRECT REGISTRATION IN ITALY

If you have a VAT number in your EU country and you want to sell to individuals (with no VAT number) in Italy, you are required to have a VAT number in Italy. Back in the days, you were required to set up an entity in Italy or have a fiscal representative located here; this process is costly and develops multiple tax and accounting issues.

FREE UAE VISA FOR LIFE WITH COMPANY SETUP STARTING AT AED 14,500

Looking to set up your UAE company? How about a visa for life? It might sound too good to be true, but itís a reality. Here is what you get with this offer that runs only until October 31st.

The FrankfurtRheinMain region - Taxes

Back to News

Fundamental Principles of Corporate Tax Law

Basics of tax laws for companies

Germany has a complex, multilayeredtax system that reliably governs the tax burden for companies and is characterized by a high level of legal security. The overall tax burden in Germany is an average of 29.8 percent lower than that of France, Spain, Italy or the United Kingdom.

Companies are taxed in Germany as follows:

  • Corporations (AG or GmbH) are currently subject to a tax of 15 percent. Possible distributions of profits to shareholders are subject to tax in the amount of 60 percent and are subject to a final withholding tax (income tax) in the amount of 25 percent. In a pay-out, there isanother 15 percent tax add-on.
  • Partnerships (GbR, oHG or KG) are not subject to corporation tax. The profit shares of the Company are attributable to individual shareholders and to income tax with the respective personal progressive tax rate.
  • Bodies and private companies also pay a business tax. It is a municipal tax, where the tax rates are determined individually by the municipality inwhich the company is located.

The social security system in Germany is financed by an assessment system. The contributions are provided by both employers and employees. The contribution rates are set by the legislature (for pension insurance, unemployment insurance, health insurance and nursing home insurance) and the local government (for accident insurance). Social insurance is compulsory for the entire workforce and social security contributions are drawn directly by the social insurance carrier.


You are not logged in!

Please login or register to ask our experts a question.

Login now or register.