It is worth noting that taxation in Germany is considered one of the highest in the world. However, the German tax system is transparent and understandable, which makes it one of the most advanced in the world. In general, when it comes to GmbH, such companies must pay the following types of taxes:
• Income tax – 15% of the company's total income.
• Business tax, the amount of which depends on the legal address of the company. So, the base rate is 3.5%, which must be multiplied by the regional coefficient: in Frankfurt am Main it is 4.6 (16.1% tax), and in Munich – 4.9 (17.15% tax).
• VAT – 19%.
• Solidarity Supplement – 5.5% of the profit rate. Not all companies pay.