You have decided to start a business in Germany and want to make the right decisions right from the start? Then taxes should be at the top of your priority list. The tax regulations in the Federal Republic of Germany are considered to be complicated, but they are not inscrutable. This guide will give you the necessary overview so that you can orientate yourself more quickly and start successfully as a company in Germany. The most important things in a nutshell: At the beginning of the commercial activity in Germany is always the business registration. On your invoice you have to show the sale ..read more

When an employee is dismissed, he or she often receives a severance payment. This is a one-off cash payment arranged by the employer due to the termination of the employment relationship. The severance payment is intended to compensate the employee for the termination. It should be noted that the severance pay must also be taxed and declared in the tax return. Paying tax on severance pay In principle, severance pay has been a normal income since 2006. Since then, severance payments are no longer completely tax-free. Such payments do not have to be taxed only if the total income for the year in ..read more

The calculation of property tax has been based on outdated values for years. For this reason, new calculation bases are to apply from 2025. For these, however, the current property values are required, so that all property owners in Germany must submit a property tax return. The original deadline for this was 01.07. to 31.10.2022. Since it will not be possible to ensure that all declarations are received within the deadline, the federal and state governments agreed shortly before the deadline expired that the deadline for submitting property tax declarations nationwide will be extended once un ..read more

At the turn of the year, a number of tax changes will come into force that will have an impact on payroll accounting. We would like to inform you briefly about these. 1. increase of the basic tax allowance and the child allowance As of 01.01.2023, the basic tax allowance will increase from € 10,347 to € 10,908 (annually). The child tax allowance will increase for each parent from € 2,730 to € 3,012 (i.e. a total of € 6,024, including the childcare allowance of € 2,928, then a total of € 8,952 per year). The LBV will automatically take the increase in the allowances into account as of the salar ..read more