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Germany
Overview
Last reviewed - 27 June 2024Germany, 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 one of the largest economies 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 14,000 experts at 20 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 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 2 September 2024 (2 June 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. |
| 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 |
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