Accountancy

Hero Icon

Körperschaftsteuer: German corporation tax explained in plain English

Contents What is Körperschaftsteuer (corporation tax)? Who has to pay corporation tax in Germany? What is the corporate tax rate? How is taxable income calculated? Is there a corporation tax allowance? How do losses affect corporation tax? When and where do you pay corporation tax? Summing up corporate income tax in Germany    What is …

Read more

Umsatzsteuer: Everything you need to know about VAT in Germany

Contents What is Umsatzsteuer (VAT)? Who has to pay VAT in Germany? Why do I need a USt-IdNr.? What is tax deductible? Target taxation vs. actual taxation What is reduced VAT in Germany? How is VAT calculated?  Bookkeeping & VAT Can I be exempt from paying VAT? What is ‘Durchschnittssatzbesteuerung’? Can VAT be paid in …

Read more

Umsatzsteuer in Ratenzahlungen: Can VAT be paid in instalments in Germany?

When is it possible to pay VAT in instalments? Businesses that agree with customers to pay in instalments over several years must also only pay VAT in instalments. This is because the payment is “irrecoverable” until the instalment is due, as the Niedersächsisches Finanzgericht (Lower Saxony Tax Court) ruled (case No. 5 K 288/15). As …

Read more

Wirtschaftliche Abkürzungen: What do all those German accounting, financial & tax law acronyms mean?

  Wirtschaftliche Abkürzung Financial acronyms Meaning AAG Aufwendungsausgleichsgesetz Expenditure compensation act AB Anfangsbestand Opening balance AfA Absetzung für Abnutzung / Abschreibung Deduction for wear & tear/depreciation AG Aktiengesellschaft Public limited/stock company   Amtsgericht Local court   Arbeitgeber Employer AktG Aktiengesetz Stock corporation Act a.L.u.L. alle Lieferungen und Leistungen All deliveries & services ALV Anlagevermögen Fixed …

Read more