All companies have to pay taxes
These are the ten most important taxes for medium-sized companies
The German tax offices know about 40 different types of tax. Some of them are very old, others like the aviation tax have only been around for a few years. Some taxes mainly affect private individuals, such as tobacco or church taxes. Others, on the other hand, are aimed exclusively at companies. These are the ten most important corporate taxes.
The trade tax is a communal tax that the Trade income of a company is taxed. This can, but does not have to, be identical to the profit of the business. This is because components such as pension payments or distributions to the shareholders are deducted for the calculation of the profit, but not - at least in part - when determining the commercial income. 3.5 percent of the trade income makes up the Trade tax base. In order to ultimately receive the amount that the company has to pay to the tax office, this amount is also combined with the so-called Rate of assessment multiplied.
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Since the income from business tax flows to the municipality in which the company is based, each municipality sets its assessment rate individually. In Mecklenburg-Western Pomerania the rate is lowest with an average of 309 percent, while companies in North Rhine-Westphalia have to dig deepest into their pockets with 428 percent. A rate of 428 percent, for example, means that the company must multiply its tax base by a factor of 4.28 in order to calculate the applicable trade tax. If a company has multiple locations, it has to split its tax payments. The tax office defines the exact breakdown in one Dismantling notice firmly.
Companies have to pay business tax in Advance payment to step. The trade tax prepayments are made quarterly in the middle of the quarter, i.e. on February 15th, May 15th, August 15th and November 15th.
Corporate income tax is levied on the profit determined in the tax balance sheet. It is therefore the counterpart to income tax for natural persons. The uniform tax rate is 15 percent of taxable income. Everyone has to pay this tax legal personswho have their headquarters or their management in Germany. Professional associations and political parties, among others, are exempt from corporate income tax.
Since corporation tax is only payable on profits, companies must with losses do not pay them. However, some positions like hidden profit distributions may not reduce the tax burden. A hidden profit distribution occurs when the company concludes a contract with one of its shareholders that it would not have concluded with a third party. For example, the payment of unusually high rents for the operational use of a property owned by the shareholder.
The solidarity surcharge is an additional levy on corporation tax of 5.5% of the tax amount. As a result, the effective corporation tax burden is even 15.825 percent.
value added tax
Almost all companies in Germany are subject to sales tax. The sales tax is usually 19 percent. For food or books, for example, a reduced tax rate of seven percent applies.
Companies can partially pay sales tax - for example when purchasing raw materials - as input tax Sales tax pre-registration deduct to the tax office. Companies must submit this advance notification to their tax office on a regular basis. The officers then use the numbers to determine whether a repayment or additional payment is due. How often a pre-registration is made depends on the amount of sales tax paid in the previous year. Annual, quarterly or monthly tests are possible.
As a rule, companies must submit the pre-notification to the tax office by the tenth day of the following period at the latest. But companies can do one Permanent extension apply for one month.
Here the companies become the so-called Vicarious agents the tax offices. The companies must withhold the wage tax amount of their employees and transfer it to the responsible tax offices. Even when it comes to their employees' taxes, employers should look into it so that they withhold the correct amounts. If this does not happen, the company may be liable for missing tax payments liable be. If an employee gets too much money back with the income tax return because the employer has provided false information and the employee can no longer return the money to the tax office later, the employer is liable for the missing sum.
Taxes are also due for inherited business assets. The tax rate depends on the amount of inherited wealth and is a maximum of 30 percent. In order to promote the takeover and continuation of companies, the legislature has created two options with which the heirs can significantly reduce their tax burden or even lower it to zero: the Rule exemption and the Spare option.
If the heir chooses the standard exemption for the corporate succession, 85 percent of the inherited business assets are tax-free. The standard exemption is possible if the heirs continue the company for at least five years, during this period they pay four times the wages as in the financial year of the taxation date.
With the exemption option, on the other hand, even the entire inherited wealth is tax-free. But stricter requirements also apply. The heirs must hold the company for at least seven years, pay seven times the wage bill during this period and the administrative assets must not exceed 20 percent.
Anyone who chooses one of the two options and then does not meet the requirements, for example because they sell earlier, must pay the taxes later. The establishment of a Family holding can avoid such an uncomfortable situation.
Real estate transfer tax
If a company buys a plot of land or a property, it has to pay the real estate transfer tax to the federal states, which partly pass this on to the municipalities. In principle, the real estate transfer tax is 3.5 percent, but the individual federal states can adjust the amount. In addition, the following applies: the tax rate is lower for an undeveloped plot of land than for a plot of land with a completed commercial property.
While land transfer tax is only payable when buying land or property, a business must pay land tax every year that it owns the land or property. The amount depends on the one hand on the value of the property and on the other hand on the respective tax rate, which differs from region to region.
Capital gains tax
Does a company make a profit in the form of investments from its investments Interest and Returns, it has to pay capital gains tax just like private individuals. This is a uniform 25 percent plus a 5.5 percent solidarity surcharge. For Corporations Exceptions apply.
Import sales tax
If a company imports goods from a non-EU country that were not taxed there when they were exported, import sales tax is due in Germany. This is based on sales tax. Accordingly, the rate for import sales tax is 19 or 7 percent, depending on the product. How much money the importer has to pay depends, among other things, on how much the Customs value the goods are, what duties had to be paid and how high the transport costs for the import are.
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