German taxes

If a foreign company operates a branch office in Germany (business office, factory, etc.), its profits must be taxed in Germany. The taxes incurred depend on the legal form of the company. They correspond to the taxes that a company with the corresponding German legal form would have to pay.

The profits of the branch which is taxed in Germany is either exempt from taxation in the other State or is subject to taxation there, in which case the tax paid in Germany is charged against the corresponding tax of the other State. Details are provided in the Agreement for the Avoidance of Double Taxation (DBA) concluded by Germany with the other State.

In particular, income tax or corporation tax, solidarity surcharge, payroll tax, trade tax and value-added tax are payable.

Please find an overview about the German taxes as following:

Please note: For tax & legal advisory please refere to our cooperation partner Counselhouse.

Consultinghouse - Martin Wilke

Martin Wilke

Managing Director
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*All services offered on this website are provided by Consultinghouse A.M.C. Int GmbH and are exclusively carried out under § 6 Nr.3-4 of the German tax adviser direction code. Consultinghouse provides management consulting as well as services with regard to accounting of current business activities, the generation of payslips, as well as the registration for payroll tax. For tax or legal services please contact our cooperation partner