tax matters in Germany
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When is your company liable to pay taxes in Germany?

The tax obligations in Germany for your company start as soon as you establish a company such as a GmbH or set up a permanent establishment. A permanent establishment can be, for example, an office, warehouse or factory in Germany. In this case, you must file a tax return and pay taxes on the profits made in Germany. It is therefore essential to carefully consider the tax consequences of establishing a permanent establishment in Germany.

Does Germany have the same tax system as other countries?

Germany has a complex tax system that includes several types of taxes, including:

• sales tax (value added tax): Is levied on the sale of goods and services.
• income tax: Applies to the income of natural persons.
• corporate tax: Is levied on the profits of corporations.

These taxes can be compared to those in other countries, but the specific rules may vary. Therefore, it is advisable to consult a tax expert to learn about German tax laws and avoid unforeseen tax burdens.

What does the double taxation agreement between Germany and the Netherlands mean?

Germany and the Netherlands have a double taxation agreement to avoid double taxation. This agreement regulates how taxation is divided between the two countries. It is especially important for companies that operate in both countries as it ensures that income is not taxed twice. A tax advisor can help you take advantage of the agreement and ensure that you do not pay more tax than necessary.

What types of taxes are there in Germany?

In Germany, there are a variety of taxes for companies, including:

• income tax and corporate tax: These concern the income of natural and legal persons.
• Value Added Tax (VAT): A tax on the sale of goods and services.
• Local taxes: These include municipal taxes and property taxes, which can vary depending on the region.

It is important to thoroughly inform yourself about the different types of taxes in advance to ensure that you meet all tax obligations and can take advantage of possible tax benefits.

Can I use my Dutch payroll and accounting services in Germany?

Dutch accounting cannot be used for your business operations in Germany. You are required to keep separate payroll and bookkeeping according to German regulations. These requirements are not only important for the proper administration of your business, but also for meeting your tax obligations in Germany. Germany has specific laws and regulations for payroll and bookkeeping that you must be aware of. It is advisable to consult a tax expert or accountant who is familiar with German regulations.

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