Germany

Overview

Last reviewed - 30 June 2022

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 has about 12,000 partners and staff employed 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) 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 2021 tax year, deadlines have been extended to 31 October 2022 (31 August 2023 if tax adviser is instructed) due to Corona pandemic.

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 (A temporary deduction of the VAT rate on meals [except for beverages] provided in restaurants and through other catering services from 19% to 7% remains in force until 31 December 2022 in response to the COVID-19 pandemic.)

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)

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Headline inheritance tax rate (%)

50

Headline gift tax rate (%)

50

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.