German Business Tax
Tax advice and tax returns for businesses in Germany
Ongoing German tax advice, tax returns and year-end tax work for GmbHs, UGs, partnerships, sole proprietors and foreign businesses operating in Germany.
German business taxation
Business taxes, accounting and shareholder taxation should be considered together
Depending on their legal form and activities, businesses in Germany may be subject to corporate income tax, trade tax, individual income tax and VAT. Additional obligations can include E-Bilanz filings, payroll tax, financial reporting and international reporting or documentation requirements.
Tax returns should therefore not be considered separately from the accounting records. Annual financial statements, tax adjustments, provisions, tax-loss carryforwards, distributions, shareholder relationships and financing arrangements directly affect German business tax compliance.
For owner-managed businesses, the distinction between company and shareholder taxation is particularly important. Salary, dividends, shareholder loans, asset use and other transactions can create tax consequences at both levels.
Scope of services
German tax services for businesses
The scope is tailored to the company's legal form, business activities, ownership structure, accounting system and international connections.
Corporate income tax
Preparation of German corporate income tax returns for GmbHs, UGs and other corporate taxpayers.
- Taxable income
- Non-deductible expenses
- Tax-loss carryforwards
- Hidden profit distributions
Trade tax
Calculation of German trade income and preparation of the trade tax return, including relevant additions and deductions.
- Trade income
- Trade-tax additions
- Trade-tax deductions
- Trade-tax loss carryforwards
Partnerships
German tax compliance for GbRs, OHGs, KGs and other partnerships together with their partners.
- Partnership tax returns
- Special business assets
- Special remuneration
- Profit allocation
VAT
Advice and compliance for German and cross-border VAT matters.
- VAT advance returns
- Annual VAT return
- Input VAT
- Reverse charge and international transactions
Annual accounts and tax balance sheet
Coordination of German GAAP annual accounts, tax adjustments and the tax-basis calculation.
- Balance sheet and income statement
- Tax reconciliation
- Provisions and accruals
- E-Bilanz
Shareholders and distributions
Tax analysis of transactions and relationships between the company and its shareholders.
- Dividend distributions
- Managing-director remuneration
- Shareholder loans
- Hidden profit distributions
Company formation and structuring
Tax advice on new businesses, entity selection and ownership structures.
- GmbH and UG
- Partnerships
- Holding structures
- Equity and debt financing
Restructurings
German tax advice for changes to business and ownership structures.
- Contributions
- Mergers and demergers
- Share-for-share exchanges
- Business and share sales
Tax proceedings
Assistance and representation in German tax proceedings.
- Review of tax assessments
- Tax-authority enquiries
- Objections and amendment requests
- Tax audits
Ongoing compliance
Tax returns are only one part of business compliance
Depending on legal form and activity, German tax compliance, accounting, electronic filings and financial reporting obligations need to be coordinated.
Ongoing financial accounting, account reconciliation, document organization and tax-correct recording of transactions.
German GAAP financial statements as the basis for tax filings, tax reconciliation and disclosure obligations.
Electronic transmission of German tax-balance-sheet data or tax reconciliation data to the tax administration.
Coordination of annual accounts with applicable German filing, disclosure or deposit requirements.
VAT advance returns, annual return, EC Sales Lists and cross-border VAT matters.
German employer tax obligations and coordination with payroll, managing-director compensation and cross-border employment.
Agreements, remuneration, loans, distributions and other transactions between the company and its shareholders.
Tracking tax losses and reviewing the potential consequences of ownership or structural changes.
Additional filing and documentation obligations can arise from foreign shareholdings, permanent establishments and related-party transactions.
How we work
From accounting records to German tax assessments
Initial review
We review legal form, ownership, business activities, accounting, relevant taxes and international connections.
Financial data
Bookkeeping records, annual accounts, tax accounts, prior-year returns and tax assessments are collected.
Tax filings
We determine tax adjustments and prepare the relevant returns, E-Bilanz and supplementary filings.
Tax assessments
We review the assessments and assist with enquiries, amendments, objections and further communication with the Finanzamt.
Cross-Border Tax
German businesses with international connections
Foreign shareholders, subsidiaries, permanent establishments, employees, financing and related-party transactions can create additional tax and reporting obligations that should be coordinated with the German tax position.
Germany–Switzerland
Coordinated business tax advice for companies, shareholders and groups with connections between Germany and Switzerland.
- Permanent establishments and place of management
- Transfer pricing and intercompany services
- Distributions and shareholdings
- Employees and cross-border activities
Germany–United States
Coordination of German and U.S. tax issues for companies, shareholders and investments between Germany and the United States.
- U.S. LLCs and corporations
- German GmbHs with U.S. shareholders
- CFC and information-reporting obligations
- Transfer pricing and permanent establishments
Insights
German business taxation in detail
Additional guidance covers GmbH compliance, company interests, German CFC taxation and Germany–U.S. business structures.
Frequently asked questions
German business tax advice
Which tax returns does a German GmbH need?
Do you also provide ongoing bookkeeping?
Do you also work with partnerships and sole proprietors?
Can you advise a foreign business operating in Germany?
Do you represent businesses before the German tax authorities?
Do you advise on cross-border business structures?
Contact
Let us discuss your company's German tax obligations.
During the initial consultation, we review your legal form, business activities, accounting, required tax returns, ownership structure, international connections and the expected scope of services.