Wise Business Group
January 6, 2024
An overview of the usual tax terms and the tax system in Germany
Tax terms are often difficult to understand. Since the German tax system is very complex, it becomes more difficult to understand these terms, especially for expats. Therefore, to avoid possible mistakes when paying taxes in Germany, you should familiarize yourself with some of the most common terms. The most important are:
• Tax Office: Finanzamt
• Gross salary: Brutto
• Net salary: Netto
• Salary certificate: Wohnbescheinigung
• Tax declaration: Steuererklärung
• Tax identification number: Steueridentificationsnummer
• Tax number: Steuernummer
• Tax rate: Steuersatz
If you are not thoroughly familiar with German tax terms and laws, we recommend seeking help from a tax advisor to fill out your tax return.
January 1, 2024
• A small business in Germany can provide the prerequisites for moving towards self-employment. This type of business is attractive for founders who want to start without worries, with low capital, or as a side business.
• Business registration and obtaining a license is essential for starting a small business in Germany. Entering the commercial register is not required. However, depending on the business, some documents may be required.
• Accounting for a small business in Germany is simple and is done using surplus income accounting. Also, there is no obligation to keep accounts and publish annual financial statements in the Federal Gazette.
• You can use the legal forms of sole proprietorship, UG, GbR, or GmbH to set up your small business in Germany as an individual or a group. However, you should pay attention to things such as liability, requirements related to double-entry bookkeeping, and entry into the commercial register.
December 25, 2023
In recent years, we have seen significant growth and unprecedented promotion of entrepreneurship in Germany. The reason for that can be having a robust and dynamic startup ecosystem and a supportive business environment. Germany is known for advanced and reliable infrastructure, innovation, and excellence in engineering sciences. In this article from Wise Business Group, we will explain why Germany has become an attractive destination for entrepreneurs.
December 19, 2023
A sole proprietorship is one of the most common and popular legal forms for startups in Germany. This type of company has numerous tax and legal […]
December 17, 2023
One of the most common questions we face these days is buying a ready-made business in Germany, which can be very attractive to investors. However, you […]
December 16, 2023
Here in Wise Business Group, we will explain how a CEO of the company in Germany who is a shareholder, can be recognized as a self-employed, […]
November 25, 2023
• According to the principle of freedom of trade, all people can register a business in Germany if they provide the necessary documents, permits, and approvals.
• If you set up a business or branch, start a commercial activity, take over, relocate, or expand a business in Germany, you must register it. However, freelancers are exempt from business registration.
• As an entrepreneur in Germany, it is necessary to register your business at the latest until the start of activity. Otherwise, you may face fines or penalties.
• The local trade office of the municipality or city where the business is located in Germany is the responsible body for registration.
• You must complete and submit the relevant form when registering your profession in Germany. Also, bring your passport or ID card with you. Depending on the type of business, you may need to provide additional documents.
November 3, 2023
You must go through the qualification recognition process to immigrate to Germany. During this process, it will be determined whether your qualifications are comparable to professional […]
October 21, 2023
The German salary system is well-regulated to guarantee transparency, accuracy, and compliance with legal requirements. Employers are often responsible for accurately calculating and processing employee salaries according to German labor laws and contractual conditions.
Employees in Germany usually receive their salaries every month. The employers must provide their employees with detailed pay slips containing the various salary components, tax deductions, social security contributions, and other additional payments. They deduct some mandatory deductions such as income tax, social security contributions, health insurance contributions, and pension contributions directly from employees' salaries and pay them to the competent authorities.
