![]() ![]() In addition, a solidarity surcharge ( Solidaritätszuschlag) is added on top of the corporate income tax. For more information please also refer to our chapter on tax deductions. However, German tax law provides different accounting options and income correction rules, meaning that the taxable income usually differs from the annual profit determined in the financial statement under commercial law. ![]() This is recorded in the annual financial statement and forms the basis for determining taxable income. Under German commercial law, corporate company annual profit is calculated according to the accrual basis accounting method. annual business profit) forms the tax base for corporate income tax. Corporate Income Tax RateĬorporate income tax is levied as a flat nationwide tax at a rate of 15 percent of taxable corporate income. via a permanent establishment, dividends or licenses). Dividends that have been generated and taxed abroad may be exempt from taxation in Germany or taxes paid in a foreign country can be offset against taxation in Germany.Ĭorporate companies who are not based in Germany and do not have an executive board in Germany are only liable to corporate income tax on income generated inside Germany (e.g. Companies Liable to Corporate Income TaxĬorporate companies – such as the limited liability company (GmbH) or the stock corporatioon (AG) – based in Germany or with an executive board in Germany are liable to corporate income tax on globally generated income.This is levied at a flat nationwide rate of 15 percent on the taxable profits of the company. All corporations are liable to corporate income tax.
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