Tax & Compliance

German Tax & Annual Compliance: General Overview

A plain-language summary of the main German tax and filing points for a company in 2026. This is general information to help you plan, not tax or legal advice. Your German provider or adviser confirms what applies to your situation.

German Tax & Annual Compliance: General Overview

Corporate Income Tax & Solidarity

A German company pays corporate income tax at 15%, plus a solidarity surcharge of 5.5% of that tax (about 15.8% combined at federal level). Municipal trade tax (Gewerbesteuer) applies in addition and varies by municipality, so the overall corporate tax burden is commonly around 30% depending on location.

Trade Tax (Gewerbesteuer)

Trade tax is levied at municipal level and varies by location, so the total effective tax rate depends on where the company is based. Current figures should be confirmed.

VAT

The standard German VAT rate is 19%, with a reduced rate of 7% for certain goods and services. VAT registration and charging obligations depend on the activity and turnover.

Withholding & Treaties

Dividends and certain payments to non-residents can be subject to withholding tax, though EU directives or a treaty may reduce or eliminate it for qualifying recipients. Eligibility should be confirmed case by case.

Annual Financial Statements

Companies prepare annual financial statements and file or publish them as required, along with tax returns. Deadlines apply after the financial year-end.

Payroll & Social Security

Where a company employs staff, German payroll taxes and social-security contributions generally apply, with periodic filings. This only applies where there is actual employment.

Start Your Germany Company Today

Send us your details and we will explain the GmbH and UG options and connect you with a Germany provider.

Request a Quote