If you are not obliged to prepare annual accounts, it is sufficient to calculate the profit as the surplus of the operating income over the operating expenses. These are then compiled in a so-called surplus income statement and sent to the tax office once a year together with the corresponding tax forms. Since the income […]
The most significant differences between the commercial and the tax balance sheets are in the following items: Depreciation’s Goodwill or company value Simplified methods of stock evaluation Future increases in prices and costs for calculation of provisions Accruals for pensions Contingent loss provision Intangible assets in fixed assets. Did we get your attention? See here […]
How expensive is a discount credit? A supplier makes you the offer to either fully pay an invoice within 30 days or pay within 10 days with 2% trade discount. For interest paid on overdraft, your firm’s bank demands 10% interest p.a. and for credit on the current account, you get 0% p.a. Is it […]
Holding companies hold shares in other companies. Accounting and annual financial statements are generally very manageable due to low business activities. According to § 8b Corporation Tax Act, profit distributions of other corporations to the holding company are tax-free if the participation amounts to at least 10% of the nominal share capital and if one […]
Independent professionals and sole proprietorships – income tax, VAT and trade tax The income of sole proprietorships and independent professionals is declared in the income tax return. The profits are shown based on payment transactions as the difference between revenues and expenditures in a cash basis accounting. The correct income and expenditure amounts must be calculated […]
In private companies such as a BGB company, KG (limited partnership) or OHG (general partnership), for uniform and separate identification of profits, the operating profits allotted to each individual shareholder are calculated. Trade tax must only be paid in case a trade is carried on in Germany. We advise our clients with respect to tax […]
Annual VAT return, Corporate Income Tax return and trade tax return Legal entities such as AG (public companies), GmbH (private limited companies) and UG (entrepreneurial companies/mini GmbH) must file returns for VAT (VAT return), corporate income tax (corporate tax return) and trade tax (trade tax return) for each financial year. Your turnover and claimed input […]
Tax Consulting Company, Public Audit Company
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