Germany

At a glance

 

Corporate Income Tax Rate 15 %
Solidarity surcharge 5.5 % of corporate tax, effectively 0.825 %
Municipal trade tax from 7 % to 17 % 16 %
Average total effective tax rate on corpate profits 32 %
   

Tax rate applied on capital gains, significant shareholdings 95% exemption

1.6 %
Tax applied on branch profits  32 %
Average total effective tax rate on corporate profits 19 %
   
Withholding taxes to foreign recipients                                (standard rates, i.e. no treaty non EU)  
on dividends 25 %
on branch profit remittance N.A.
on interest (other then secured by real estate or paid by bank) N.A.
on royalties 15 %
   
Loss carry back period (corptax only) 1 year
Loss carry forward period (indefinetly) eternal

Introduction

Germany, officially the Federal Republic of Germany (German: Bundesrepublik Deutschland), is bordered to the north by the North Sea, Denmark, and the Baltic Sea; to the east by Poland and the Czech Republic; to the south by Austria and Switzerland; and to the west by France, Luxembourg, Belgium, and the Netherlands. The territory of Germany covers 357,021 square kilometers (137,847 sq mi) and is influenced by a temperate seasonal climate. With 81.8 million inhabitants in 2010, it has the largest population among member states of the European Union, and it is home to the third-largest number of international migrants worldwide. As a modern nation-state, the country was first unified in 1871. In 1949 Germany was divided into two separate states: the Bundesrepublik Deutschland and the Deutsche Democratische Republik. Germany was reunified in 1990 as a federal parliamentary republic of sixteen states (Bundesländer). The capital and largest city is Berlin. Germany is a member of the United Nations, NATO, G8, G20, and the OECD. It is a major power with the world's fourth largest economy by nominal GDP and the fifth largest in purchasing power parity. (Source: Wikipedia)

Publications

CTA Members in Germany

Volker Streu Volker Streu
Telephone: + 49 16 29 774779 E-Mail: volker.streu@corptax.org

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