Accountancy

Contents What is Umsatzsteuer (VAT)? Who has to pay VAT in Germany? Why do I need a USt-IdNr.? What is tax deductible? Target taxation vs. actual taxation What is reduced VAT in Germany? How is VAT calculated?  Bookkeeping & VAT Can I be exempt from paying VAT? What is ‘Durchschnittssatzbesteuerung’? Can VAT be paid in …

  Contents What is Kapitalertragsteuer? FAQs When is capital gains tax due? How much is capital gains tax? How do I pay capital gains tax? Abgeltungsteuer vs. Kapitalertragsteuer  How high is the tax-free amount? When should I file the KAP annex? What was the interest income tax? Capital gains tax & holding companies Summary Want …

  Wirtschaftliche Abkürzung Financial acronyms Meaning AAG Aufwendungsausgleichsgesetz Expenditure compensation act AB Anfangsbestand Opening balance AfA Absetzung für Abnutzung / Abschreibung Deduction for wear & tear/depreciation AG Aktiengesellschaft Public limited/stock company   Amtsgericht Local court   Arbeitgeber Employer AktG Aktiengesetz Stock corporation Act a.L.u.L. alle Lieferungen und Leistungen All deliveries & services ALV Anlagevermögen Fixed …

Contents What is Einkommensteuer? The types of income tax Who has to pay income tax? Do businesses have to pay income tax? Who has to file a tax return?  The basic income tax table How can I reduce my income tax? How to calculate your income tax Where, when and how to file a tax …

Contents Are payslips mandatory? Why do I need a payslip? What if I haven’t received a payslip? What do I do about an incorrect payslip? What happens if I’ve been paid too much? Does my employer have to send me the payslip? Verdienstbescheinigung (earnings certificates) Vermögenswirksame Leistungen (capital-forming benefits)  Payslip for fixed-term contracts What does …

Contents Rücklagen Offenen Rücklagen (open reserves) Stille Rücklagen (hidden reserves) Rücklagen vs. Rückstellungen How to build reserves Kapitalrücklage (capital reserve) Gewinnrücklagen (retained earnings) How are reserves dissolved? FAQs Want to know more?  Rücklagen: What are reserves? Rücklagen is a German accounting term. Put simply; reserves are a company’s savings (Sparguthaben). The formation of reserves is …