An especially important part of the corporate tax return is the “Uniform and Separate Declaration of Determination of Profits”, which presents the results of the partnership for each individual shareholder and notifies the respective residence tax office of the shares in the result. A shareholder often incurs expenses for his investment, which he pays privately. These must be declared as special business expenses, so that they are not lost for tax purposes.
A corporation tax return must be prepared for “non-natural persons” such as a GmbH or AG.
The basis for trade tax, which is a municipal tax, is the profit according to the Income Tax Act. In the trade tax return, the additions and deductions regulated by the Trade Tax Act are made to determine the so-called trade tax base amount. This amount is multiplied by the municipalities via the trade tax measurement amount valid there. In this way, trade tax is calculated.
The VAT declaration is also part of the company’s tax returns. Value Added Tax is levied on the supplies and services provided by a company in Germany against payments within the framework of the company. The annual declaration explains the sales generated in a calendar year.