Your AI accountant for Germany.

Körperschaftsteuer

Körperschaftsteuer (KSt) is Germany's corporate income tax at a flat rate of 15% on taxable profits, plus a 5.5% solidarity surcharge on the tax itself, giving an effective KSt rate of 15.825%. GmbHs and AGs also pay Gewerbesteuer separately.

Gewerbesteuer

Gewerbesteuer (GewSt) is Germany's municipal trade tax levied on all commercial businesses. The base rate is 3.5% applied to adjusted taxable profit, then multiplied by the local Hebesatz (municipal multiplier, typically 300–500%). Effective rates range from ~10.5% to 17.5%.

Umsatzsteuer

Umsatzsteuer (USt) is Germany's VAT at 19% standard rate and 7% reduced rate (food, books, public transport, cultural events). All businesses above the Kleinunternehmerregelung threshold must register, charge, and file periodic Voranmeldungen via ELSTER.

GmbH

GmbH (Gesellschaft mit beschränkter Haftung) is Germany's most common private limited company structure. It provides limited liability for shareholders, requires €25,000 minimum share capital (€12,500 paid up at formation), and must be formed by notarial deed and registered in the Handelsregister.

Einkommensteuer

Einkommensteuer (ESt) is Germany's progressive personal income tax applying to individuals. Rates range from 0% (below €11,604 basic allowance in 2025) to 45% (above €277,826). A 5.5% Solidaritätszuschlag applies above thresholds; Kirchensteuer (church tax) of 8–9% on the ESt amount applies to church members.

Kleinunternehmerregelung

The Kleinunternehmerregelung is Germany's small business VAT exemption under §19 UStG. Businesses below €22,000 turnover in the prior year and expecting no more than €50,000 in the current year can opt out of charging Umsatzsteuer. Updated thresholds apply from January 2025.

Yes — Germany allows a flat-rate home office deduction of €6 per day worked from home, up to a maximum of €1,260 per year (210 days). No separate study room is required. Alternatively, actual costs of a dedicated room can be claimed if it is exclusively used for work.

Yes — employee salaries and wages are fully deductible as Betriebsausgaben under §4 EStG / §8 KStG. Deductible amounts include gross salary plus all employer social insurance contributions (approximately 20% additional), and employer pension contributions to company pension schemes.

Yes — company vehicles used exclusively for business are fully deductible. For mixed private/business use, either the 1% rule (Fahrtenbuch Pauschale) or an actual logbook (Fahrtenbuch) must be used to calculate and tax the private-use benefit. The most tax-efficient method depends on the vehicle's list price and extent of private use.

Partially — 70% of genuine business entertainment costs are deductible as Betriebsausgaben under §4 Abs. 5 Nr. 2 EStG. A Bewirtungsbeleg receipt listing all attendees, the business reason, and the date is mandatory. The remaining 30% is a permanently non-deductible business cost.

Yes — fees paid to Steuerberater (tax advisors), Rechtsanwälte (lawyers), and Wirtschaftsprüfer (auditors) for revenue-related matters are fully deductible as Betriebsausgaben. The key distinction is between revenue-generating advice (fully deductible) and capital structure costs (often not deductible or capitalised).

Yes — rent for external office space or commercial premises is fully deductible as a Betriebsausgabe under §4 EStG / §8 KStG. Lease costs, service charges, utilities, and office fit-out costs are all deductible in the period incurred. Home office deductions follow separate rules.