Tax & Accounting
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 an executive moving or returning home to Frankfurt or a business founder expanding your business, the team of tax specialists at Krieger have the expertise to ensure your move doesn’t result in negative tax consequences.
Tax & Accounting for Expats in Frankfurt
Individuals and businesses are required to lodge end of financial year tax returns each year in Frankfurt. The financial year begins on January 1st and ends on December 31st.
Key Tax & Accounting tips you should know as an expat in Frankfurt
- The German tax system has different rates of tax for German tax or non-tax residents. It is advisable that you seek advice from a tax advisor as to the status of your tax residency when you move to Frankfurt.
- Germany has a progressive income tax system, meaning the higher the income you earn, the higher the marginal tax rate.
- Income tax is paid by the employer and any under or over payment is balanced when you lodge your tax return.
- Employees can deduct income-related costs from their income. It is best to employ the services of a reputable tax agent to lodge your tax return. They will know the deductions you are eligible to claim.
- Besides income tax, social security contributions will be deducted from your income also.
- Married couples will be taxed together provided they are both in Germany. This is advantageous because the tax burden is lower than if they were taxed as a single person.
- Bilateral double taxation treaties are in place with many countries which help you to avoid double taxation.
Tax & Accounting for expats establishing a business in Frankfurt
- Corporations are treated as residents in Germany for tax purposes if their place of incorporation or their main place of management is in Frankfurt.
- Corporate tax is levied at the rate of 15% and is then subject to a solidarity surcharge of 5.5%.
Download the Tax & Accounting Frankfurt Chapter
The Tax & Accounting 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