Germany > Legal entities > Bookkeeping and Tax Returns for Companies
Bookkeeping
and Tax Returns
for Companies
in Germany
We can help you with administration and solutions in Germany.
Do I have to file a tax return in Germany?
If you carry out work in Germany on a long-term basis, you may have a permanent establishment in Germany for income tax purposes. In construction and assembly work, this is usually after a 12-month period has been exceeded, working for one customer on one site, or on multiple sites within a radius of up to 50 km. Should this situation arise, you are obliged to tax your income in Germany backwards from the date on which the contract in question started in Germany.
You may also have a permanent establishment if you buy or rent premises in Germany or if your employee or agent closes deals on your behalf in Germany.
Each case may be special and specific, so we recommend you consult us to find out whether you may have a permanent establishment for income tax purposes in that particular case. Should you be at risk of this, we will advise you on how to avoid the obligation if this is still possible or how to mitigate the consequences as much as possible.
From a quality point of view, it is advisable to have a German tax advisor handle both your accounting and your taxes. We will be happy to represent you on the basis of a power of attorney in cooperation with our local counsel in Germany.
Frequently asked questions
When does a foreign company have to file a tax return in Germany?
The obligation may arise if the company has taxable income, a permanent establishment or other tax-relevant presence in Germany. The assessment depends on German regulations and the relevant double taxation treaty. We will review your situation and arrange the necessary steps in cooperation with an authorised German tax adviser.
When can a permanent establishment arise in Germany for a construction or installation company?
For construction and installation projects, whether a permanent establishment arises is assessed according to the duration and connection between the specific projects and under the relevant double taxation agreement. The threshold cannot safely be determined from a general rule alone without reviewing the treaty and the facts. We assess the projects and identify the related tax obligations.
Does a foreign company have to keep accounts according to German rules?
The scope of German accounting and recordkeeping obligations depends on the legal form, registrations and type of business activity of the company in Germany. The German tax office may require records and documents necessary for the correct determination of tax. We will set up the document-submission process and arrange the bookkeeping in cooperation with an authorised German tax adviser.
What taxes can a company pay when doing business in Germany?
Depending on the legal form and method of operation, this may include corporate income tax, trade tax, solidarity surcharge or VAT. The specific obligation and amount of the tax depend on the results of the company, the municipality and the tax status. We will prepare an overview of the obligations according to the specific situation of the company.