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Economic Development Dortmund
Income Tax
Who has to pay income tax?
Enterprises organized as partnerships (one-man businesses, partnerships
at will, general partnerships, business partnerships) are not subject
to any specific taxation of profits. However, the owners or partners of
an enterprise are committed to pay tax on the business profit in their
private income tax declaration.
What is subject to tax?
The income tax is subject to the profit of business activities. What
counts as profit is the surplus of business revenues in comparison with
the business expenditures. It is a difficult field which kinds of business
expenditures can be imputed. It would be best to ask you tax consultant.
What is the level of the income tax?
First of all, a so-called exemption minimum (“Mindestfreibetrag”)
will be subtracted from the income to be taxed. It currently amounts at
€ 7,664 for unmarried and € 15,329 for married persons. These
amounts will not be subject to taxation. The rest of the annual income
is subject to a tax rate which lies between 16 % and 45 % according to
the income.
When does the tax have to be paid?
Income tax has to be paid in advance, i.e. you have to contribute a payment
on instalment to the local tax office (dates cf. tax
calendar) altogether four times per annum. The amount of these payments
in advance conforms to the income estimated. Up to the 31 May of the particular
subsequent year you have to deliver your income tax at the local tax office.
The local tax office then calculates your real tax liability and repays
to you the amounts which probably may have been paid too much or makes
an additional claim, if your pre-payments were to low.
Electronic tax declaration
Meanwhile, you have the chance to deliver your tax declaration electronically.
The 
German
Ministry of Financial Affairs (“Bundesfinanzministerium”)
gives you basic information; you may receive details and the necessary
software on the website of the project
“ELSTER”.
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Corporate
tax
Introduction
to taxes