Frequently asked questions to tax advisors and how to receive responses (online and offline)

Which legal form is optimal for setting up my own business?

‍The decision for a specific legal form, such as a GmbH or a UG, influences liability and tax burden, among other things. In addition, some legal forms involve higher bureaucratic costs than others. Talk to your tax advisor to find out which legal form suits you best. Of course, you can also change your chosen legal form retrospectively, for example after a few years of doing business. This is particularly useful when circumstances have changed.

Which costs can I deduct for tax purposes?‍

Expenses caused by operations are deductible. This includes costs for office supplies, business trips and continuing education. There are lump sums for some tax-deductible costs, such as working from home.

Do I have to file an advance sales tax return?‍

The obligation to file the advance sales tax return is based on the sales tax payload of the previous calendar year. If the sales tax payload exceeds 7,500€, you are required to submit your registration monthly. There is a quarterly tax obligation if the payment burden in the previous year was between 2,000€ and 7,500€. If your sales tax payload in the previous year was less than 2,000€, you can be exempted from the obligation to register in advance.
If you expect an input tax refund of more than 7,500€ in the founding year, you can submit monthly advance sales tax returns in accordance with Section 18 paragraph 2a of the UStG.

How do I create a surplus income statement (EUER)?‍

Integral provides an all-in-one solution for your startup: From annual financial statements to tax optimization, our partner tax advisor supports you. Our platform reduces paperwork, ensures GoBD compliance, and saves time so you can focus on scaling. Convince yourself with a free initial consultation!

What funding programs are there for my company?‍

In Germany, you can take advantage of many different funding programs for companies. The associated conditions may vary — depending on the company phase and location. But regardless of whether it is to support your business start-up, to advance the digitization of your company, to become more energy efficient or to invest: There is a suitable program at federal, state or EU level for just about every goal.
Some grants, such as the start-up grant from the Employment Agency, do not have to be repaid. Contact persons for funding opportunities relating to sustainability include KfW and BAFA. You should also find out about regional funding programs.

How high are tax advisor fees for a small business?‍

Tax advisor fees for small businesses are also based on the Tax Consultant Remuneration Code and vary depending on expenditure. A small business owner with an annual turnover of 25,000€, around 40 bookings a month, without employees, with a quarterly advance declaration and an EUER, who has his tax return prepared by his tax advisor, pays an average of around 1,600€ per year.

What do I have to consider during a tax audit?‍

Comprehensive preparation helps to make the tax audit as stress-free as possible for all parties involved. Your tax advisor checks your documents and thus creates a reliable basis. It shows you which accounting documents may be missing. At the same time, you should prepare yourself for inquiries, for example about unusually high spending.

How do I optimize my tax burden as a self-employed person?‍

Self-employed people who want to optimize their tax burden should consistently deduct their operating expenses, properly plan investments (including with regard to depreciation of low-value assets and more expensive purchases) and review the small business regulation. You should also consider the pro rata deduction — for example in connection with private and business use of your vehicle. Retirement plans and pension expenses can also often be deducted for tax purposes.

What are the deadlines for the tax return?‍

The deadlines for filing a tax return can be found on the website of your responsible tax office. If you have a tax advisor assist you with your tax, you will have later filing dates than those who file their own tax return. Anyone who misses their deadline must pay a late payment surcharge. A lot of information on the subject of “deadlines” can also be found on the website of the Federal Chamber of Tax Advisors, among others.

Can I do my bookkeeping myself or do I need assistance?‍

You decide for yourself whether you do your bookkeeping yourself or whether you want help from a tax advisor. If you have extensive background knowledge on the subject of “taxes” and if your company is characterized by relatively simple structures, it may be a good idea to take care of the tax yourself.
However, when wage payments, extensive depreciation or the like become relevant, it makes sense to work with a tax advisor. If you mistakenly provide incorrect information as part of your tax return, you are responsible and liable accordingly. A tax advisor can relieve you of the burden and help you not to take legal risks.