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Processing of tax returns

Am I obliged to submit a tax return in Germany?

If you carry out long-term works in Germany, you may found a fixed establishment liable for income tax. In case of construction and installation works, it usually means exceeding of 12 months of work for one client in one place or in several place within the range of 50 km. In that case, you are obliged to tax your income in Germany retrospectively, since the start date of the given establishment in Germany.


A fixed establishment may be founded if you purchase or rent facilities in Germany, or if your employee or intermediary closes deals in Germany on your behalf. Every case is individual and specific; therefore, we recommend consulting it with us to find out if it is a case of fixed establishment liable for income tax. If such a situation arises, we can help you avoid the given obligation, if possible, or to diminish the related repercussions.

If you carry out construction or installation works in the territory of Germany and your work in one place and for one client exceeds 12 months, you are obliged to submit a tax return in Germany and to tax the income from the given order since its start in Germany.

In Germany, in addition to income tax, you should pay a tax on trade license, which varies depending on the area. The overal tax burden may reach 25-30%.