Accountancy

Contents What is Einkommensteuer? The types of income tax Who has to pay income tax? Do businesses have to pay income tax? Who has to file a tax return?  The basic income tax table How can I reduce my income tax? How to calculate your income tax Where, when and how to file a tax …

Contents Rücklagen Offenen Rücklagen (open reserves) Stille Rücklagen (hidden reserves) Rücklagen vs. Rückstellungen How to build reserves Kapitalrücklage (capital reserve) Gewinnrücklagen (retained earnings) How are reserves dissolved? FAQs Rücklagen: What are reserves? Rücklagen is a German accounting term. Put simply; reserves are a company’s savings (Sparguthaben). The formation of reserves is mandatory for all companies, …

Contents Legal Framework  What must payslips in Germany contain? FAQs Legal Framework for payroll accounting A pay slip or salary statement is the right of every employee. Every employer is therefore obliged to issue a monthly payslip. The legal basis of the payroll system has three pillars: GewO:  The remuneration components are regulated in the …

Contents Components of non-wage labour costs Non-wage labour costs for employers How do statutory non-wage labour costs work?  Special non-wage labour costs Variable & voluntary non-wage labour costs Example non-wage labour cost calculations What is the purpose of these costs? Would you like to know more?    What are the components of non-wage labour costs …

Contents What is payslip? Payroll abbreviations Further tips Want to know more? What is payslip? This payslip in Germany goes by several names: Mainly Gehaltsabrechnung but also Entgeltabrechnung and Lohnabrechnung. As the name suggests, this document clearly shows the gross and net values of an employee’s remuneration and proves the employee’s financial entitlements. Once a …

Contents What is the Kleinunternehmerregelung? VAT vs. input VAT How can I apply for the exemption? What are the profit & turnover limits? What are the advantages? What are the disadvantages? How much tax will I have to pay? What should my invoice include? Other features How can I quit using the tax exemption? Kleinunternehmer …