Tax presence
Germany
GmbH – limited liability company
A GmbH is usually taxed on 2 levels:
- Firstly, it is subject to corporate income tax (Körperschaftsteuer).
- On the second level, a GmbH is subject to trade tax (Gewerbesteuer), which is imposed by local municipalities (ie, the town or city where the company is based).
Companies are obliged to add value-added tax (VAT – Mehrwertsteuer) to the prices of their goods or services and to invoice their customers accordingly.
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