Accountancy

Summary Navigating the tax rules as a self-employed person in Germany means understanding income tax, VAT, trade tax and other levies you may face. Your legal form—whether you operate as a sole proprietor, freelancer or company—directly affects which taxes apply and how your profit is calculated. To manage this, use a reliable tax calculator tailored for …

Summary An annual financial statement brings together a company’s accounts to show its financial position at year-end. Depending on size and legal form, businesses face different obligations, from a simple surplus statement to full annual accounts with notes and management reports. Filing and disclosure rules ensure transparency, while deadlines and signatory requirements vary according to …

Summary A German LLC company such as a UG (haftungsbeschränkt) or GmbH must apply the method of double-entry bookkeeping 💬doppelte Buchführung rather than a simple profit-and-loss summary. The annual financial statements— including balance sheet and profit & loss account—must be completed within six months of the year end or face a fine. The process starts …

Summary Payroll accounting in Germany involves preparing a detailed payslip for each employee covering gross earnings, taxes and social security contributions. Gross pay includes the base salary or wage plus bonuses, allowances and non-cash benefits. From this amount you deduct wage tax, church tax (if applicable) and the solidarity surcharge. In addition, you must deduct and …

Summary A sole proprietorship 💬Einzelunternehmen in Germany is taxed as part of the owner’s personal income: the profit from the business is subject to income tax, including the solidarity surcharge and possibly church tax. If the business is a commercial trade, it also pays trade tax (liberal professionals 💬Freiberufler exempt) and is generally liable to value-added …