Companies in Germany

Running a business in Germany places you in one of the largest marketplaces in Europe, with around 83 million potential customers, numerous distribution channels, and vast business opportunities. However, it also involves many obligations, deadlines, and challenges. From preparing tax returns and annual financial statements to structuring options and tax optimization, many aspects must be considered. These requirements often raise questions — and we are happy to assist you. Please contact us by email or phone.

Preparation of Annual Financial Statements  

At the end of each financial year, companies in Germany are required to prepare annual financial statements and submit them to the competent tax office. These statements provide information about the company’s economic performance.

Companies that maintain double-entry bookkeeping must submit a balance sheet, profit and loss statement, and other supporting documents as part of their annual financial statements. Smaller businesses that do not maintain double-entry bookkeeping only need to submit an income-surplus statement (Einnahmenüberschussrechnung) to the tax office.

A special feature for GmbH and GmbH & Co. KG companies is the publication requirement. Their annual financial statements must be published in the electronic Federal Gazette (Bundesanzeiger) within one year after the end of the financial year and are therefore publicly accessible. Failure to comply with this obligation may result in penalties.

We prepare the required annual financial statements for submission to the tax office, banks, or other authorized parties. In doing so, we make use of the legal options available under commercial and tax law and advise you accordingly. If necessary, we also prepare a separate tax balance sheet.

The tax-specific requirements introduced with the E-balance sheet are, of course, fully taken into account.

Statutory or voluntary audits are carried out in cooperation with various auditing firms, often working together with professionals already known to you. During such audits, the tax authorities review the taxes reported in the tax returns — including VAT, input VAT, and payroll taxes.

Preparation of Tax Returns

Companies must also submit tax returns to the relevant tax office. The structure of these returns depends on the legal form of the business.

For example, corporations must pay corporate income tax and therefore submit a corporate tax return based on a tax balance sheet. They are also subject to trade tax, which must be declared separately in a trade tax return.

We support you in fulfilling all these tax obligations so that you can focus entirely on running your business. From ongoing VAT advance returns and payroll tax filings to annual tax returns for income tax, corporate tax, trade tax, and VAT, we handle all necessary filings on your behalf.

We provide these services for corporations, partnerships, and sole proprietorships alike. We remind you well in advance of deadlines and ask the right questions to ensure that your tax advantages in Germany are fully utilized.

Tax Consulting, Structuring and Optimization

We help you make the right tax decisions, for example when choosing the appropriate legal form or designing the most suitable tax structure within a corporate group.

We also assist with restructurings, share transfers, acquisitions, and liquidations, ensuring that unnecessary tax burdens are avoided wherever possible.

Advisory Services and Transfer Pricing

In many cases, tax advice must be considered across borders. One area that regularly requires attention is transfer pricing, which is closely scrutinized by the tax authorities of both countries involved.

Unlike in Scandinavia, German tax offices frequently conduct tax audits. During these audits, business transactions are examined in detail and reassessed from a tax perspective. Transfer pricing, contractual arrangements, and professional tax guidance play a crucial role in such situations.

During tax audits, we represent your interests as your tax advisor and advocate for your position in discussions with the German tax authorities.

Our Strength: International Tax Law Scandinavia – Germany

In cross-border matters, it is not enough to optimize taxation on only one side of the border. The combined effects in both countries must always be considered. Here we rely on our many years of experience in German-Scandinavian tax matters, particularly with regard to Denmark.

Due to our location close to Germany’s northern border, we traditionally advise many Scandinavian companies operating in Germany. At the same time, we have supported numerous German companies in establishing and running their operations in Scandinavia.

With our multilingual team, a Danish state-authorized auditor, and an excellent international network, we can provide answers to complex cross-border questions. We are also happy to handle communication with the relevant local authorities.

Our advice is always based on German and Scandinavian tax law, taking into account the applicable double taxation agreements.