VAT return, corporate income tax return and trade tax return each year
Legal entities such as AGs, GmbHs and UGs must submit a VAT return, a corporation tax return and a trade tax return for each financial year.
Your turnover and the input tax claimed must be declared for each calendar year in the annual VAT return. If you exceed certain turnover limits, you must also submit monthly or quarterly advance VAT returns. There are exceptions for small businesses.
You declare your taxable income to the tax office with the corporate income tax return.
If a corporation has its registered office or management in Germany, it is always subject to trade tax. Exceptions may only arise for foreign corporations with limited activities in Germany (e.g. if real estate in Germany is managed from abroad).
Capital gains tax on distribution
If the shareholders of a corporation decide to make a distribution, the company must declare capital gains tax to the tax office and pay it if necessary. Exceptions may arise if, for example, a certificate of exemption is available. The latter should be applied for very early (also with effect for the future), as the processing times are now very long (up to one year)
Shareholders of corporations must also declare dividends and other income in their income tax return if no German withholding tax has been withheld and paid.
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Which tax returns must be submitted by partnerships or freelancers and sole proprietorships?
