The S·K· Profit Taxation Guide for Germany gives a useful overview with regard to business taxes and special rules for businesses on profit taxation in Germany by providing general information and covering the most important regulations, also for groups operating cross-border.
Generally, all German resident companies and entrepreneurs with commercial activities in Germany are liable for taxation. There is only limited tax liability for non-resident companies. Depending on their organizational form, they may be liable to pay taxes on business activities conducted in Germany solely.
Germany applies a profit taxation to all businesses operating in Germany by raising business taxes, such as, for example, corporate tax, trade tax and VAT. However, there are tax reliefs and special regulations, which should be taken into consideration when, amongst others, founding corporations, planning certain transactions, making decisions within the group or operating on an international basis (e. g. locational
choice, dividend distribution, formalities etc.).
Please find attached the new guide "Taxation of Profits in Germany"