Member in Germany Committee Member in Corporate Tax matters
v. Woedtke & Partner is an internationally oriented law firm, acting for corporate and commercial clients in the heart of Dusseldorf, one of Germany’s leading business centers. We offer you access to experienced specialist lawyers who work with competence and passion for delivering excellent client service and tailored legal solutions to your legal needs. Our team is specialized in all areas of corporate and commercial law and offers its clients related legal expertise in banking and finance law, employment and media law, real estate and transport law, and tax and competition law.
Germany has a high level of professional workers and well-trained, educated managers makes Germany into one of the main service providers as well as advanced product manufactures in the world. German transportation is modern, well-developed and efficient and the country is steadily increasing its dependency of renewable energy sources. Unlike other countries that discriminate local and overseas investors, Germany offers equal benefits and limitation to any investor without notice country of origin. Germany has a long tradition in a stable financial and legal framework. All legal agreements are binding, intellectual property rights are protected and all laws are enforced.
Principal Exports
€2,644bn German GDP as of 2012
Principal Imports 47% 15% 5% 2.5% 2.5% 28%
Machinery & Transport Equipment Chemicals & Related Equipment Food, Drink & Tobacco Mineral Fuels & Lubricants Raw Materials Miscellaneous
Forms of Companies in Germany
Foreign Holdings
Exports according to sectors in 2012 in bn EUR
Corporations
33% 13% 6% 13% 5% 29%
Main Export Destinations
Automotive
190
Mechanical Engineering
164
Chemicals
104
Electrical Engineering, Eletronics
86
Metal Products
58
Pharmacy
55
Food, Beverages
45
Rubber, Plastics
38
Corporation is subject of tax (capital gain tax) In general the German Financial Authorities do not recognize foreign trust. The beneficial owner must be named.
Intransparent e.g. GmbH, AG, Verein, Stiftung (Trust)
Partnerships
As an anti-avoidance rule, dividends to holding companies within Europe are only tax free, if the holding company has its own business operation (§ 50 III EStG).
Shareowners are subject to (individual income) tax Transparent GbR, sole proprietor, OHG, KG
Company Taxation
9.6% France
6.6% Netherlands
6.2% UK
5.9% Italy
5.5% Austria
5.3% United States
4.9% China
59.3% Rest of EU
Principal Imports
For business founders, self-employed professionals and small and medium-sized enterprises (SMEs)
Average Tax burden of Corporations of selected countries 2010 (in %)
19
% Poland
13.8%
7.6%
which have been active in the market for less than three years and have funding requirements of up to EUR 10 million there are possibilities for grants fFor the establishment or takeover of an enterprise, for the acquisition of an interest in an enterprise, this can also be a part-time business if the plan is to achieve full-time self-employment later and for the consolidation of a young enterprise in the first three years, e.g. NRWInvest or KfW.de
As a result of the mixed and variable components, the overall tax burden of corporations can differ by up to ten percent between locations. Only the Corporate tax is just 15%. The average individual tax burden is 42%. The VAT is 19% and Real Estate Transfer Tax is 3,5%6%.
7.0%
6.3%
5.4%
4.8%
4.4%
20.62% 22.83% Hungary
Germany (minimum)
25
% Netherlands
26% UK
29.83% Germany (average)
30% Spain
31.40% 34.43% Italy
63.4% Sources
Netherlands
France
China
Belgium
Italy
UK
Austria
Rest of EU
www.nationmaster.com/Statistics for economy The Economist, Pocket World in Figures, Edition 2014
Investment Guide to North Rhine-Westphalia Statistisches Bundesamt
France