About Tax Law in Frankfurt am Main, Germany
Frankfurt am Main, one of the largest cities in Germany, has a robust tax system that adheres to both federal and regional regulations. Its tax system includes various categories such as income tax, trade tax, corporate tax, value-added tax, among others. Compliance to these stringent tax laws can sometimes be complicated, as German tax law is known for its complexity and constant updates.
Why You May Need a Lawyer
Whether you are a business owner, expatriate, or an investor, navigating Frankfurt's tax environment could be overwhelming. You may need a tax lawyer for any number of reasons including preparation of complex tax returns, assistance during tax audits, dispute resolution with tax authorities, setting up a business, property sales, or inheritance planning. A professional lawyer can provide legal advice and guidance, ensuring compliance with tax obligations as well as maximizing tax benefits and savings.
Local Laws Overview
Frankfurt's local tax laws fall under the broader umbrella of Germany's federal laws. Key tax aspects include Income Tax which everyone irrespective of their nationality is subjected to, Corporate Tax for businesses and Corporation Tax on profits for corporations. Trade tax applies to all types of trades conducted in Frankfurt, with the rates varying by municipality. Additionally, the VAT in Germany generally stands at 19%, however, reduced rates of 7% apply to certain goods and services like food and books.
Frequently Asked Questions
What is the basic rate of income tax in Frankfurt?
The basic income tax rate in Germany varies between 14% to 42%, depending on your income bracket. A 'rich tax' of 45% is levied on the section of income exceeding €260,533 for single taxpayers.
Are there any tax benefits for expatriates in Frankfurt?
Yes, expatriates may avail of certain tax benefits like the Expatriate Tax Exclusion, which allows foreign employees to be exempt from tax on certain foreign earned income, depending on certain conditions.
How are corporations taxed in Frankfurt?
Corporations in Frankfurt are liable for Corporate Income Tax at a flat rate of 15%, with a solidarity surcharge of 5.5% on the corporate tax amount. If the corporation is involved in trade, a trade tax between 14%-17% will be levailed, depending on the municipality.
What is the standard VAT rate in Frankfurt?
The standard VAT (Value Added Tax) rate in Germany, including Frankfurt, is 19%. However, a reduced rate of 7% applies to certain goods and services.
Who do I contact for tax disputes in Frankfurt?
It's recommended to first contact your tax advisor or attorney to explore options and formalities involved in resolving a tax dispute. The Finanzgericht Hessen (Tax Court of Hesse) in Frankfurt is the relevant body for tax disputes in the region.
Additional Resources
The Federal Ministry of Finance provides comprehensive information on German tax law. The Frankfurt Chamber of Commerce and Industry (IHK Frankfurt am Main) offers advice and services for businesses. Additionally, the Central Office for Taxes (Zentrale Zulagenstelle für Altersvermögen - ZfA) in Berlin can provide information about subsidies for private retirement provisions.
Next Steps
If you need tax legal assistance in Frankfurt, consider consulting a tax attorney. They are experts in German tax law and can provide comprehensive advice regarding your specific situation. Specialized legal firms in Frankfurt offer a range of services such as tax planning, audit defense, dispute resolution, etc. It is advisable to perform diligent research and choose a lawyer or firm that caters to your specific requirements and budget.
Lawzana helps you find the best lawyers and law firms in Frankfurt am Main through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Tax, experience, and client feedback.
Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters.
Get a quote from top-rated law firms in Frankfurt am Main, Germany - quickly, securely, and without unnecessary hassle.
Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please
contact us, and we will review and update it where appropriate.
