Taxation

A GmbH is liable for corporate tax, VAT, trade tax, and a “solidarity surcharge”.

My fees for the tax returns are roughly estimated. The fees depend on the annual turnover and are set by an Ordinance determining the fee. My remuneration, i.e. factor of fee, mirrors the complexity of the company’s tax situation (double taxation, many / few long term assets, publication requirements, balance sheets, reporting to another institution / consultant, e.g.).

Below is a typical scenario when it comes to “accounting” for a GmbH with an annual turnover of € 50,000 with average difficulty. In order to determine the factor which is fair for both of us, I want to take monthly flat advances of € 200 for the first three months. In the fourth month, I will instruct you on the intended fees for the whole year. When it comes to paying for taxation services, I prefer to take monthly advances to secure the company’s liquidity. Archiving your details is not a necessity but is extremely handy if your company is to be audited, or you have no real physical address here.

Task	Fees*	Once	Mth	p.a.
1. Company Registration
Setup fee	€ 600	X
Applying for VAT-ID	€ 0
				X
2. Wage Taxation for Employer
Executing wage taxation per employee and month	€ 20		X
Setup fee for payroll	€ 500	X

2. Company’s Taxation (assumed annual turnover 50 k€)
Set-up fee for bookkeeping	€ 200	X
Booking any (incoming and outgoing) invoices **	€ 7		X
Corporate Taxation**	€ 123	X
Trade Taxation**	€ 82	X
Value Added Taxation** – monthly / quarterly pre-return	€ 78	X
Value Added Taxation** – annual return	€ 124	X
Notes on the accounts	€ 46	X
Statutory Flat Fee For Postage and Telecommunication *** per all above items in this section and per invoice	€ 25	X

This offer is subject to modification, if your client wishes more or less services. If they exist, please communicate!

* = all fees are net, i.e. 19% VAT will be added
** = assumed turnover € 50.000 p.a.
*** = The fees ordinance allows the attorney to collect a statutory flat fee of 15% for postage for all items under no. 2. However, if you do not mind corresponding digitally, I would waive the flat fee for communications – even though some correspondence must and will take place in writing.

The above offer results in monthly advances of € 251 (plus VAT) where as the first month will be invoiced with setup fees as needed.

Setup fee for registration: The setup fee is registering the company for taxation purposes at the tax office and discussing whether or not to bill with VAT (regarding domestic business), instructing how taxation works in Germany in a nutshell, applying for VAT-ID, describing the most important hints for deductions in a nutshell, double checking the correctness of your first invoice so that it meets VAT regulations and your company does not lose its face with its clients etc.

Setup fee for payroll: Setup for payroll costs € 500 and includes registering the business for payroll at tax office, social security and other authorities. There are at least four different agencies to be contacted and all have their own reference… You will also receive a nutshell on information on what you need to know and what your rights and duties as an employer will be.