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Company taxes in Germany

How to start a German limited company. Incorporation or formation of a company in Germany.



Companies and taxation in Germany

There are tax advantages for groups or individual companies, which may wish to
establish in Germany.

The country is not a tax haven, but there is a network of double tax agreements that offer some big advantages.

Requirements and steps for the registration of a company in Germany

Once it is incorporated, the company must register with the Tax Services.

Corporate tax in Germany

In 2012, based on the taxable profits:

  • Corporate tax is 15%

However, there are:

  • A local tax is between 14 and 17% overall
  • A tax of 5.5% of 'solidarity'

Withholding taxes on Germany

Normally this is 25%, but it can be reduced to zero when:

  • It is another company of the European Union
  • In case of many double taxation agreements
  • A major shareholder is subject to a special exemption