Germany

Overview

Last reviewed - 23 December 2023

Germany, located in Central Europe, is bordered by Denmark to the north, Poland and the Czech Republic to the east, Austria and Switzerland to the south, France to the southwest, and Belgium, Luxembourg, and the Netherlands to the west. Germany has the largest economy and is the second most populous nation (after Russia) in Europe. It is divided into 16 provinces, and its capital is Berlin. The official language of Germany is German, and the currency is the euro (EUR).

Germany is a key member of the European economic, political, and defence organisations. The German economy is the fourth largest economy in the world. Germany is a leading exporter of machinery, vehicles, and chemicals. It also benefits from a highly skilled labour force.

PwC audits and advises not only leading companies of all sizes in all fields of activity in Germany but also (ultra) high-net-worth individuals. The German firm of PwC employs more than 13,000 experts at 21 locations.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)	Corporate income tax/solidarity surcharge: 15.825%; Trade tax: From 8.75% to 20.3%, depending upon the location of the business establishment.

Corporate income tax (CIT) rates

Headline CIT rate (%)

Corporate income tax/solidarity surcharge: 15.825%;

Trade tax: From 8.75% to 20.3%, depending upon the location of the business establishment.

Corporate income tax (CIT) due dates
CIT return due date	31 July (if the taxpayer instructs a professional tax adviser, the deadline is extended to the end of February of the following year). For tax years 2019 to 2024, filing deadlines have been extended due to the COVID-19 pandemic.
CIT final payment due date	As stated on the assessment notice.
CIT estimated payment due dates	Quarterly instalments due on the tenth day of March, June, September, and December.

Personal income tax (PIT) rates
Headline PIT rate (%)	45, plus surcharges

Personal income tax (PIT) due dates
PIT return due date	31 July of the year following the tax year (if the taxpayer instructs a professional tax adviser, the deadline is extended to the end of February of the following year). For the 2022 tax year, deadlines have been extended to 2 October 2023 (31 July 2024 if tax adviser is instructed) due to the COVID-19 pandemic. For the 2023 income tax returns, the deadline is 31 August 2024 (31 May 2025 if tax advisor is instructed).
PIT final payment due date	Within one month of the date that the final assessment is issued.
PIT estimated payment due dates	Quarterly instalments are due on 10 March, 10 June, 10 September, and 10 December

Value-added tax (VAT) rates
Standard VAT rate (%)	19

Withholding tax (WHT) rates
WHT rates (%) (Dividends/Interest/Royalties)	Resident: 25 / 25 / 0; Generally, only interest paid by banks to a resident is subject to WHT. Non-resident: 25 / 0 / 15 or upon application as reduced by EU directive/double tax treaty/domestic law. WHT is charged on interest from convertible or profit-sharing bonds and over-the-counter transactions.

Withholding tax (WHT) rates

WHT rates (%) (Dividends/Interest/Royalties)

Resident: 25 / 25 / 0;

Generally, only interest paid by banks to a resident is subject to WHT.

Non-resident: 25 / 0 / 15 or upon application as reduced by EU directive/double tax treaty/domestic law.

WHT is charged on interest from convertible or profit-sharing bonds and over-the-counter transactions.

Capital gains tax (CGT) rates
Headline corporate capital gains tax rate (%)	Capital gains are subject to the normal corporation tax rate.
Headline individual capital gains tax rate (%)	25, plus 5.5% solidarity surcharge on tax paid (in total 26.375% plus church tax if applicable)