Tax Advisory & Compliance
With a wealth of business accounting and tax advisory expertise, Krieger builds firm and trusting relationships with private businesses and individual clients through their personal service and tailored tax advice
Whether you are a global executive moving overseas or returning home to Frankfurt, a global founder expanding your business or a middle market company expanding internationally, the team of tax specialists at Krieger have the expertise to ensure you receive the best tax and business guidance and advice.
Tax Advisory & Compliance for Expats in Frankfurt
Income tax in Germany is progressive. What this means is that the more income a person earns, then the higher the rate of income tax that they will have to pay on their income.
A resident of Germany must pay income tax in Germany on all their worldwide income. A non resident of Germany pays income tax only on their German sourced income.
Generally, a person is a resident of Germany if:
- they have a residence in Germany that they use or that is at least available to them or
- they have a habitual abode in Germany. This can be assumed if the individual is present in Germany for more than 6 months in the calendar year or for a consecutive period of 6 months over the year end.
In calculating tax payable, various income related expenses incurred may be deducted provided these expenses are not reimbursed by an employer. Expenses which are commonly deducted are costs of travelling to and from work, business literature, professional dues and work equipment.
Other expenses which may be deducted in Germany are alimony payments, donations to German and certain international charities, childcare expenses and education expenses.
Germany has entered into double tax treaties with nearly 90 countries. The purpose of these treaties is to ensure that same income is not taxed by more than one country.
As with individuals, Germany taxes its corporate residents on their worldwide income.
Corporations are treated as residents in Germany for tax purposes if their place of incorporation or their main place of management is in Germany.
A corporation which is not a resident of Germany has its income tax obligations limited to its income from German sources.
Corporate tax is levied at the rate of 15% and is then subject to a solidarity surcharge of 5.5%.This results in a total tax rate of 15.825%
An expat moving to Frankfurt either for employment or seeking to establish and operate a business will be best served with the guidance and advice of a specialist tax advisor. Our Eteam member is a firm of highly regarded tax specialists in Frankfurt, versed in both local and international tax, willing to guide and assist you in relation to all your tax affairs
Download the Tax Advisory & Compliance Frankfurt Chapter
The Tax Advisory & Compliance Chapter written by Alexander Krieger, Krieger, provides further detailed information about issues you need to be aware of in regards to Tax Advisory & Compliance in Frankfurt.DOWNLOAD NOW