Germany taxes
The capital of Germany is Berlin, the country's population is 80 people. The state in Central Europe is distinguished by a high standard of living, a stable economic situation, complete security and decent social services. guarantees.
Every individual or legal entity can take advantage of the prospects and great opportunities offered by the European country. If you wish open a company in Germany, then this issue must be approached with special care.
Company Experts «E-COMMERCE BROKER" offer professional assistance in registering companies in different jurisdictions, opening bank accounts, and we also specialize in high-risk acquiring.
Tax system in Germany
In Germany, all legal entities are divided into foreign and local. Resident companies pay taxes on income received within Germany and on all official representative offices operating abroad.
Non-resident organizations pay taxes only on income received in Germany. We will be happy to answer your questions and provide qualified services for registering a company, with a detailed dive into the current taxation of the country.
Basic taxes in Germany:
- The amount of payments to the state treasury for local and foreign entrepreneurs varies from 23-33%, taking into account additional transfers.
- The percentage rate of value added tax is 19% and 7%.
- Capital increases are subject to tax. If a resident enterprise is sold, it is possible to obtain from the state an exemption from the established deductions in the amount of 95% of the authorized capital.
- Stamp duties and government There are no duties at all.
Accounting statements of legal entities in Germany
Every year, all companies prepare and submit financial statements with the obligatory listing of financial records, information on external/internal audit, as well as a tax return.
Each of the forms must be filled out in strict accordance with the established rules and regulations of the current legislation of Germany. In case of delay in submitting reporting documents, penalties in large sums will be assessed.
Value added tax rate in Germany subject to import/export of products for various purposes
Standard interest rate level VAT in Germany is 19%. This indicator is applicable to most categories of product items and services. A reduced rate of 7% applies to agricultural products, food, hotel business, and so on.
Registration of a company for tax purposes is mandatory, provided that the profit for the previous period amounted to 17 euros, and it is planned to rise to 500 thousand euros in the next period.
Tax returns are submitted no later than the 10th day of the following month. Payments are received within the same time period. Provided that the calculated and carried out transfer exceeds the generally accepted level, the state authorities will compensate for the damage.
If for the reporting year the total amount of tax transfers is 7500 euros or more, then in the current period the company will have to report on the turnover of products and funds every month.
General indicator German taxation is formed from income tax, trade markups, and indirect taxes. If necessary, in our company you can sign a contract for servicing your company on a regular basis.
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