Alemanya flag Alemanya: Entorn econòmic

Impostos a Alemanya

Tax Rates

Consumption Taxes

Nature of the Tax
Value Added Tax (VAT), also refered to as Umsatzsteuer (USt) or Mehrwertsteuer (MwSt).
Tax Rate
19%
Reduced Tax Rate
A reduced rate of 7% applies to food, agricultural products, public transport, books, e-books and magazines, hotels (short-term accommodation) and certain cultural services, social services, medical equipment for disabled persons and firewood.
Intra-EU supplies, exports to non-EU countries, cross-border transport of goods to and from non-EU countries are generally zero-rated.

In light of the COVID-19 epidemic, the Federal government decided to temporarily reduce the VAT rates from 19% to 16% (standard rate) and from 7% to 5% (reduced rate) in the period between 1 July and 31 December 2020. Furthermore, the rate on meals (excepting beverages) provided in restaurants and through other catering services were temporarily reduced from 19% to 5% for services provided between 1 July and 31 December 2020 and to 7% for the period until 31 December 2022.

Other Consumption Taxes
Germany levies several environmental taxes, including those on mineral oil, gas, coal and electricity. A motor vehicle tax is imposed on the ownership of motor vehicles.
General insurance premiums also incur a 19% tax.
Excise duties apply on fuel, electric power, alcoholic products and tobacco.
There are no stamp duties in Germany (except for the real estate transfer tax).
 
Find out more about Taxes and Accounting in Germany on GlobalTrade.net, the Directory for International Trade Service Providers.
 

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Corporate Taxes

Company Tax
Standard rate is 15% (15.825% including a 5.5% solidarity surcharge). Effective rate including trade tax (assessed independently by each municipality from 7% to 17.5%) is estimated at about 30-33%
Tax Rate For Foreign Companies
There is no distinction between German companies and foreign companies. Non-resident companies are only taxed on their Germany-sourced income, while resident companies are taxed on their worldwide income.
Both corporation tax and trade tax are imposed on the taxable income of a foreign company's German branch.
Capital Gains Taxation
Capital gains are typically taxed at the same rate as ordinary income at 15% (or 15.825% with the solidarity surcharge). A 95% tax exemption (a 100% exemption with a 5% add-back as a non-deductible business expense) applies to the sale of shares by a company, regardless of how long the participation in the subsidiary has been held. Such an exemption does not apply to banks, financial institutions and finance companies, life or health insurance companies and pension funds.
Main Allowable Deductions and Tax Credits
In general, all expenses incurred in the course of business operations are deductible. Germany offers unilateral tax relief, allowing companies to credit foreign taxes paid up to the amount that is subject to domestic tax or to deduct foreign tax as a business expense. Net operating losses up to EUR 1 million can be carried back one year for corporation tax (for losses incurred in 2020 and 2021 the limit has been increased to EUR 5 million, in response to the COVID-19 crisis), but this provision does not apply for trade tax. Losses up to EUR 1 million may be carried forward indefinitely. For net operating losses exceeding EUR 1 million, at least 40% of the taxable income is subject to taxation ("minimum taxation" principle). Deduction of net interest expense is generally limited to 30% tax EBITDA.

Start-up and formation expenses are deductible. Bad debts incurred on business activity with unrelated parties are deductible if it is apparent that they are irrecoverable and all attempts to pursue the debt have failed or been abandoned.

Donations to charity organizations that respect certain parameters, whether in cash or in kind, are deductible up to the higher of 20% of otherwise net taxable income or 0.4% of the total of sales revenue and wages and salaries paid during the year.

Paid taxes are deductible, except for corporation tax, trade tax, and the VAT on most non-deductible expenses. Fines and penalties are not deductible. The deductibility of certain royalty payments to related parties has limitations. Payments to foreign affiliates can be deducted, provided the amounts are at "arm’s length".

According to a Federal decree, taxpayers having income from agriculture or forestry, trade, self-employment, or rent or lease and expect to suffer losses due to the COVID-19 pandemic in 2020, which may be carried back to 2019, may apply for a reduction of income or corporation tax prepayments for 2020 (to EUR 0) and for a retroactive reduction of income or corporation tax prepayments made for 2019 based on a lump-sum loss carry-back (15% of the tax base for the prepayments in 2019). Furthermore, enhanced depreciation rates were introduced for movable assets acquired or made in the period between 31 December 2019 and 1 January 2022 of up to the factor of 2.5 compared to currently applicable depreciation rates (up to a maximum of 25% per year).

Other Corporate Taxes
A municipal trade tax is levied by municipalities at a minimum rate of 7% (averages between 14% and 17% of income).
A tax on property is levied by local authorities at a rate of 0.35% of the tax value of the property, multiplied by a municipal coefficient. A real estate transfer tax applies with rates varying between 3.5-6.5%, including on indirect transfers from the acquisition of at least 95% of the shares in property-owning companies.
Employers are liable for social security contributions, as follows:

- Pension insurance: 9.3%
- Unemployment insurance: 1.2%
- Health insurance: 7.3% (the health funds may levy a supplement of 1.1% on average)
- Invalidity insurance: 1.525% (with a surcharge of 0.25% in some cases)
The upper monthly salary limit varies according to the region.

Other Domestic Resources
Federal Central Tax Office
Consult Doing Business Website, Summary of taxes and mandatory contributions

Country Comparison For Corporate Taxation

  Germany OECD United States
Number of Payments of Taxes per Year 9.0 10.1 10.6
Time Taken For Administrative Formalities (Hours) 218.0 163.6 175.0
Total Share of Taxes (% of Profit) 48.8 41.6 36.6

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

Personal Income Tax for single taxpayers Progressive rate from 14% to 45%
From EUR 0 to EUR 9,744 0%
From EUR 9,745 to EUR 57,918 Geometrically progressive rates between 14% and 42%
From EUR 57,919 to EUR 274,612 42%
Above EUR 274,612 45%
Personal Income Tax for married taxpayers
From EUR 0 to EUR 19,488 0%
From EUR 19,489 to EUR 115,836 Geometrically progressive rates between 14% and 42%
From EUR 115,836 to EUR 549,224 42%
Above EUR 549,224 45%
Solidarity Contribution is added as a mandatory surcharge 5.5% of the amount of the income tax
No solidarity surcharge is levied any longer for individuals filing separately and having an income tax burden up to EUR 16,956, and for married filing jointly taxpayers with an income tax burden of up to EUR 33,912
If the aforementioned thresholds are exceeded, a sliding scale is applied
Church Tax (applicable to resident members of certain officially recognised German churches) 8 or 9% of the annual income tax liability. It varies according to the district of residence
Trade Income Tax
(levied on business income)
For individuals and partnerships a tax-free amount of EUR 24,500 applies
Each municipality is responsible for the final tax assessment
Allowable Deductions and Tax Credits
Statutory pension contributions (under certain limits), certain private insurance contributions, education (30% of tuition fees, excluding housing, care, and food; capped at EUR 5,000 per year/child) and training expenses, alimony (capped at EUR 13,805), donations (up to 20% of adjusted gross income), and church tax are deductbile. Additionally, resident taxpayers are granted personal allowances, as follows:
Employee's allowance EUR 1,000; Investor's allowance (for interest, dividends, and capital gains) EUR 801; Lump-sum special expense deduction EUR 36.

Actual expenses for child care can be deducted up to a maximum of EUR 4,000 per year/child (for children under 14 years or for handicapped children).

Deductions are provided for parents and children with low income (documentary evidence of low income is required), up to EUR 9,744; and for children older than 18 who are being educated in Germany or certain foreign countries, up to EUR 924 per year. A lump sum deduction of EUR 36 for a single person or EUR 72 for married couples is provided without need for proof.

Losses not offset in the year in which they occur can either be carried back to the previous year up to EUR 1,000,000 (for 2020 and 2021 this amount is increased to EUR 10,000,000 in response to the COVID-19 crisis) or carried forward indefinitely.

Special Expatriate Tax Regime
Income tax is payable by German resident individuals on their worldwide income. Non-resident individuals are only required to pay taxes on German-sourced income.
There is no specific tax regime for expatriates in Germany. However, the country has signed double taxation agreements with many countries in the world. For more information refer to the Ministry of Finance.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
Federal Ministry of Finance
Withholding Taxes
Dividends: 25% (26.375% with solidary surcharge)
Interest: 0/25% (26.375%, including the solidarity surcharge; generally only interests paid by banks to residents is subject to a withholding tax)
Royalties: 0 for residents/15% for non-residents (15.825% with solidarity surcharge)
Bilateral Agreement
Spain and Germany signed a Double Taxation Treaty.

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Find out more about Taxes and Accounting in Germany on GlobalTrade.net, the Directory for International Trade Service Providers.

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Actualitzacions: May 2022

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