pay corporate tax

Prerequisites

The following corporations, associations of persons and assets resident in Germany are subject to unlimited corporate tax liability:

• Capital companies such as stock corporations (AG), limited liability companies (GmbH) and entrepreneurial companies (UG)
• Cooperatives
• societies
• Foundations

Foreign companies may also be subject to corporate tax on their income earned in Germany (limited tax liability).

Documents required

• Electronically submitted corporate tax return (If you submit the return on paper, it will be treated as not submitted, except in cases of special hardship).
• Profit determination documents (e-balance sheet, profit and loss statement, if applicable, attachments to profit determination)

You can find out which documents are required in detail from the instructions in the tax return form.

Please note

Corporate tax is levied on the income of legal persons, i.e. corporations. It arises at the end of the assessment period, which usually covers the calendar year.

The basis for determining corporation tax is usually the corporation tax return, which is sent electronically to the tax authorities together with the annual profit calculations. This transmission is preferably carried out via the online portal www.Elster.de.

Whether and to what extent you, as a managing director or board member of a corporation, are obliged to submit a corporation tax return is determined by the provisions of the Corporation Tax Act (KStG). If you are unclear or have specific questions, we recommend consulting a tax advisor.

If your corporation is subject to corporate tax, you are required to submit a corporate tax return electronically. This also includes the electronic filing of a profit calculation.

In addition, further declarations, such as sales or trade tax returns, may be required. If you are unsure, we recommend consulting a tax advisor.

The corporate tax rate is 15 percent.

Deadlines

• If you have not sought tax advice, submit your corporation tax return by July 31 of the calendar year following the assessment period.


• As a taxpayer with tax advice (submission of the corporation tax return by a tax advisor), you submit the corporation tax return by February 28 of the second calendar year following the assessment period.

Procedure

• You submit your corporate tax return electronically to the relevant authority.
• The responsible authority will check your corporate tax return and your documents. If necessary, the responsible authority will request further documents or information from you.
• The responsible authority checks your declaration and sets the corporation tax in a notice.
• You will receive the notification from the responsible authority.

Processing time

The processing time depends on the administrative effort.

Fees

No

Legal remedies

• Objection


• Lawsuit before the tax court

Legal basis

§§ 149 , 150, 155, 157, 224, 347 Tax Code (AO)

§§ 1 , 2, 7, 8, 30, 31 Corporate Tax Act (KStG)

§§ 25 , 36 Income Tax Act (EStG)