Large corporation and small companies after registration will receive reminders of the required payments to be made on a monthly basis. This list includes:
· VAT – the general rate is equal to 19%, in some cases you can count on this rate reduction to 7% (payment to be made based on the turnover);
· income tax – this tax shall be paid in the amount of 15% of any income every 3 months in Germany (deductions are valid for equivalents of Russian LLC, JSC and partnerships);
· solidarity supplement – a payment to be made in addition to the income tax that amounts to 5.5% of the total sum;
· business payments.
The latter mentioned type of payments is just another version of the income tax in Germany. It shall be paid once per 3 months and amounts to 10-18% of the income. The amount of deductions depends on the region you are operating in as well as on the community it belongs to.
If a company owner hires employees then he/she will bear obligations to pay employer tax. It is calculated based on the salary and amounts to 14-45% of it. The higher an employee`s salary, the higher is the amount of deductions to be made to the state. It is important to know that the payment shall be made immediately upon money transfer – this can be done once per month or per week.
In case you purchase a real estate unit, you should consider 2 other types of payments:
· for real estate – 3-4% of the transaction amount;
· for property– annually 0.6% of the initial price.
The tax on dividends is set at about 25%. However, firms have an opportunity to reduce it by 45-90%, and if certain conditions are met, it can even be absolutely removed from the general list.