Tax compliance in Germany

Once a German company is registered, the local tax office (Finanzamt) gives it a tax number, and from then on a run of returns follows each year. A GmbH pays corporate income tax at 15 percent for assessment periods up to 2027, with the rate falling by one point a year to 10 percent from 2032, plus a solidarity surcharge of 5.5 percent of that tax. The activity of a GmbH also always counts as a trade for trade tax, at a multiplier set by the municipality. VAT returns come on top, and a company with staff also reports wage tax. The office may later open an inspection of earlier years. For a foreign shareholder there is often a second layer: dividends, management fees and loans between the German company and the parent abroad, which both countries may want to look at.

Firms offering tax compliance in Germany

119 more firms offering tax compliance in Germany

What to ask a German tax adviser

Commercial tax advice may only be given by persons authorised to do so, so ask whether the person responsible is a Steuerberater, and whether the firm will deal with the Finanzamt on your behalf under a power of representation. Ask for the calendar of returns and advance payments for your type of company. If the German company pays or receives money from a related company abroad, ask how the firm documents the prices charged and whether it works with an adviser in your home country on double taxation. Find out how a tax inspection would be handled and billed.

Firms on Accountanty

Accountanty lists 143 firms that handle tax compliance in Germany: 129 accounting firms, 11 law firms and three corporate service providers. English is available at 117 of them, alongside German at 137. Berlin has 42, Munich 36, Frankfurt 32 and Hamburg 22. Of the 143, 99 also handle VAT, which has its own page: VAT in Germany.

Frequently asked questions

Who can represent my German company before the Finanzamt?

Tax representation in Germany is a regulated activity, usually carried out by a Steuerberater or a tax advisory company. Ask each firm which of its staff holds the qualification and who will sign the power of representation.

Can I manage German tax filings from another country?

Yes, if a local adviser files for the company. Of the 143 firms on Accountanty that handle tax compliance in Germany, 121 say they work with foreign clients. Agree how you will approve each return before it is sent.

What should a foreign parent company tell its German tax adviser?

Every payment between the two companies: management fees, licence charges, loans, interest and dividends. These are the items a tax inspection looks at closely, and the adviser needs the contracts behind them from the start.

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General information, not legal or tax advice. Rules, rates and fees change: check them with the official sources linked on this page or with a qualified adviser before you act.