Germany corporate taxes

Germany taxes company profit in two layers: 15% federal corporate income tax (15.825% with the solidarity surcharge) plus a municipal trade tax that varies by town — together roughly 30%. VAT is 19%, wage tax is progressive to 45%, and social contributions are split about evenly between employer and employee. Mandatory B2B e-invoicing is phasing in from 2025 to 2028.

Currency EUR (€)Tax year Calendar year (or chosen financial year)EU member stateLast reviewed 2026-07-12

15.825%

Corporate income tax

15% + solidarity surcharge

~14–17%

Trade tax (municipal)

On top of CIT — combined ≈30%

19%

VAT standard rate

Reduced: 7%

14–45%

Income tax

Progressive; €12,348 tax-free

26.375%

Dividend WHT

25% + solidarity surcharge

~20%

Social — employee

Roughly matched by employer

Company forms & registration

A company is formed before a notary and entered in the Commercial Register (Handelsregister), then registered with the trade office and the tax office; beneficial owners go to the Transparency Register.

Main legal forms	GmbH (private LLC), UG (mini-GmbH), AG (stock corporation), GmbH & Co. KG^[5][8]GmbH is the default choice for most businesses.
Minimum share capital	GmbH €25,000 (€12,500 paid up); UG €1; AG €50,000^[5]A UG must retain 25% of annual profit until its capital reaches €25,000 and can convert to a GmbH.
Registers a new employer meets	Handelsregister (via notary) → trade office (Gewerbeamt) → tax office (Finanzamt) → Transparency Register^[8][9]

Other statutory requirements

Obligations beyond filing a tax return that every operating company must satisfy.

B2B e-invoicing	Phased-in mandatory structured e-invoices^[11][3]Since 2025 every business must be able to receive structured e-invoices. Issuing becomes mandatory for businesses with prior-year turnover above €800,000 from 2027, and for all businesses from 2028. Formats: XRechnung, ZUGFeRD, Peppol BIS.
Beneficial owners	Registered in the Transparency Register^[9]A person holding more than 25% of capital or voting rights is a beneficial owner; entries are filed on formation and updated without delay (Money Laundering Act, GwG).
Financial-statement disclosure	Published in the Federal Gazette within 12 months^[6]Corporations disclose their annual accounts through the Bundesanzeiger; missing the deadline draws fines from €2,500.
Document retention	10 years (books & invoices)^[6]8 years for accounting records since 2025; 6 years for business correspondence.

Corporate income & trade tax

A corporation pays federal corporate income tax plus a municipal trade tax. Because the trade tax multiplier is set locally, the total rate depends on where the company is based.

Corporate income tax	15% + 5.5% solidarity surcharge = 15.825%^[1][7]The solidarity surcharge is 5.5% of the corporate income tax. The 15% federal rate falls in yearly steps from 2028: 14% (2028), 13% (2029), 12% (2030), 11% (2031) and 10% (2032).
Trade tax (Gewerbesteuer)	3.5% × municipal multiplier (≈14–17%)^[2][7]The base rate of 3.5% is multiplied by the municipal Hebesatz (minimum 200%, often 400–500%). Corporations get no trade-tax allowance.
Combined effective rate	≈30% (roughly 29–33%)^[7]Corporate income tax, solidarity surcharge and trade tax together, depending on the municipality.
Returns & advances	Annual returns by July 31; advances quarterly^[1][2]The deadline extends to end of February of the second year if a tax adviser files. CIT advances: 10 Mar/Jun/Sep/Dec; trade-tax advances: 15 Feb/May/Aug/Nov.

Withholding taxes & dividends

Dividends	26.375% (25% + solidarity)^[4][1]EU parent-subsidiary exemption to 0% for a ≥10% holding held a year; treaties and a partial refund reduce the rate for other foreign corporate recipients.
Interest	Generally 0%^[4]Most interest to non-residents is not subject to withholding; certain profit-linked or bank-paid interest can be.
Royalties (non-residents)	15.825% (15% + solidarity)^[4]Reduced or eliminated under the EU Interest & Royalties Directive and tax treaties.
Capital income of individuals	26.375% flat^[4]A final withholding tax (Abgeltungsteuer) on dividends, interest and capital gains, plus church tax where applicable.

VAT (Umsatzsteuer)

Standard rate	19%^[3]
Reduced rate	7%^[3]Food, books and newspapers, public transport, hotel accommodation and cultural events. 0% for exports and intra-EU supplies.
Small-business scheme	Prior year ≤ €25,000 and current year ≤ €100,000^[3]A Kleinunternehmer charges no VAT; crossing €100,000 during the year ends the exemption immediately.
VAT return	Advance return (Voranmeldung) monthly or quarterly by the 10th^[3]A one-month extension is available (Dauerfristverlängerung). An annual VAT return is also filed.

Payroll: wage tax & social insurance

The employer withholds progressive wage tax and about half of the social contributions, and pays the other half; contributions apply up to income ceilings.

Income tax (Einkommensteuer)	14% → 45%, progressive^[4]0% up to €12,348 (2026 basic allowance), rising from 14% to 42% up to €69,878, 42% to €277,825, then 45%. A 5.5% solidarity surcharge applies to high incomes; church members also pay 8–9% church tax.
Pension & unemployment	Pension 18.6%, unemployment 2.6% (split)^[10]Shared roughly equally between employer and employee, up to a ceiling of €101,400/year (2026).
Health & long-term care	Health ~14.6% + supplement; care 3.6% (split)^[10]Up to a ceiling of €69,750/year (2026). Childless employees aged 23+ pay a care-insurance surcharge.
Minimum wage	€13.90/hour (2026)^[10]
Reporting	Wage-tax return (Lohnsteuer-Anmeldung) monthly by the 10th^[4][10]Social contributions are reported and paid to the employee’s health insurer each month.

Other taxes companies meet

Real property tax (Grundsteuer)	Municipal, on owned real estate^[7]Reformed from 2025 with new valuations and municipal multipliers.
Real estate transfer tax	3.5%–6.5%, set by each federal state^[7]On the purchase of German real estate (Grunderwerbsteuer).
Excise & energy taxes	Energy, electricity, alcohol, tobacco^[7]

Accounting & financial statements

Accounting standards	German Commercial Code (HGB) or IFRS^[6]IFRS is used for consolidated accounts of listed groups; individual accounts follow the HGB.
Size classes	Small: ≤€7.5m assets, ≤€15m turnover, ≤50 employees^[6]Medium up to €25m/€50m/250 employees; larger companies above. Class determines audit and disclosure duties.
Statutory audit	Medium and large corporations^[6]Small and micro companies are generally exempt from a statutory audit.
Preparation & disclosure	Prepare within 3–6 months; disclose within 12 months^[6]Small companies get up to 6 months to prepare; disclosure to the Federal Gazette is due within a year of the balance-sheet date.

Forms & filings

Every recurring return and report a typical company deals with, what triggers it, and where it goes. Registration-time and one-off filings are marked “per event”.

Form	What it is	Who files	Frequency	Deadline	Filed with
`KSt 1`	Corporate income tax return^[1]	Corporations	annual	July 31 (later with a tax adviser)	FinanzamtELSTER
`GewSt`	Trade tax return^[2]	Commercial businesses	annual	July 31 (later with a tax adviser)	FinanzamtELSTER
`USt-VA`	VAT advance return^[3]	VAT-registered persons	monthly	10th of the following period	FinanzamtELSTER
`USt annual`	Annual VAT return^[3]	VAT-registered persons	annual	July 31 (later with a tax adviser)	FinanzamtELSTER
`LSt-Anmeldung`	Wage tax return^[4]	All employers	monthly	10th of the following month	FinanzamtELSTER
`Beitragsnachweis`	Social contributions statement^[10]	All employers	monthly	Penultimate banking day of the month	Health insurersSV-Meldeportal
`e-Rechnung`	Structured e-invoice^[11][3]	B2B suppliers (phased 2025–2028)	per event	At issue	FinanzamtXRechnung / ZUGFeRD
`UBO`	Transparency Register filing^[9]	All companies	per event	On formation and without delay on change	TransparenzregisterTransparenzregister
`Offenlegung`	Financial-statement disclosure^[6]	Corporations	annual	Within 12 months of year end	BundesanzeigerUnternehmensregister

Compliance calendar

The same filings grouped by rhythm — what recurs when.

monthly

USt-VA10th of the following period
LSt-Anmeldung10th of the following month
BeitragsnachweisPenultimate banking day of the month

annual

KSt 1July 31 (later with a tax adviser)
GewStJuly 31 (later with a tax adviser)
USt annualJuly 31 (later with a tax adviser)
OffenlegungWithin 12 months of year end

per event

e-RechnungAt issue
UBOOn formation and without delay on change

Sources

Numbered references cited throughout this profile. Laws link to consolidated texts in the official register.

Corporate Income Tax Act (Körperschaftsteuergesetz, KStG)gesetze-im-internet.de — Federal law · law
Trade Tax Act (Gewerbesteuergesetz, GewStG)gesetze-im-internet.de — Federal law · law
VAT Act (Umsatzsteuergesetz, UStG)gesetze-im-internet.de — Federal law · law
Income Tax Act (Einkommensteuergesetz, EStG)gesetze-im-internet.de — Federal law · law
Limited Liability Companies Act (GmbH-Gesetz, GmbHG)gesetze-im-internet.de — Federal law · law
Commercial Code (Handelsgesetzbuch, HGB)gesetze-im-internet.de — Federal law · law
Corporate taxation in GermanyGermany Trade & Invest (federal agency) · authority
Commercial Register (Handelsregister)German Commercial Register · register
Transparency Register (beneficial owners)Transparenzregister · register
Social insurance contributions & ceilingsDeutsche Rentenversicherung · authority
eInvoicing in GermanyEuropean Commission · eu