It's pretty hard to comprehend taxes in any country, let alone in a foreign country... It really makes sense to hire an adviser. But it's worth knowing the main things, so thanks for the information :)
You did not explain what difference between "Turnover" and "Trade Income" is on calculation Trade Tax? I get confused. Is it possible for you to show a model calculation as you did for Corporation Tax?
Dear Nexus thanks for your useful informations toward starting business in Germany, can I ask question regarding opening Kleingewerbe if I open e-commerce websites I will pay tax when I import the product and pay also when I sell the products? Danke schon.
Anyone knows how do you calculate taxes if you got both self-employed and employed job (eg part time). I know for employed the employer will pay half of the medical insurance cost. So, how does it effect the medical tax when you also have self employed? Any recommendations of a good tax services?
I was watching a video on German tax rates and the host said the tax rate in Germany is 55%. This is incorrect. As you said if you’re making under €9700 you don’t pay any tax. The 55% tax rate applies to the highest income earners. Also, it is a nominal tax rate. If for example somebody’s making under €10 million per year they pay lower tax rate but once they get over €10 million a year they pay 55% tax rate on whatever they make after €10 million. So if they made €10 million they are taxed at a lower tax rate, not 55%, but if they make over €10 million, for example €10,100,000 then they pay 55% on that extra $100,000. The rest of the €10 million is taxed at a lower tax rate, which is called a nominal tax rate. I don’t know the specific numbers I’m just using this as an example. Can you do a video or explain to me how the nominal tax rate works for different income levels, not just the very rich but at all income levels and do all income levels have nominal tax rates? For example somebody making €50,000 per year would pay the lower tax rate on that €50,000 but if they made €51,000 they would pay a higher tax rate on that extra €1000. Another words they would be text differently on those two incomes. A different tax rate of €50,000 and the different tax rate on the extra €1000. Nominal tax rate.
Thank you for your comment. In our video we said no such thing. The topic of income tax is very complex and complicated. Maybe we'll make a video about it indeed to provide general information. However such matters should be discussed with a tax adviser in each specific case.
![Tax Classes in Germany [Explained]](http://i.ytimg.com/vi/JUSNxh4llek/mqdefault.jpg)
![Tax Classes in Germany [Explained]](/img/tr.png)
Contact us to launch a successful business in Germany: nexus@nexus-gmbh.biz
Thanks for the clear breakdown of German company taxation. This is indeed very useful. 👍
Glad it is helpful. Thank you for watching and sharing your opinion.
This is a very important topic!
Thank you for your comment. We think it is very important to understand the main aspects too
Very good job and as always explained in a very understandable way.
Many thanks.
It's pretty hard to comprehend taxes in any country, let alone in a foreign country... It really makes sense to hire an adviser. But it's worth knowing the main things, so thanks for the information :)
This is exactly what we wanted to make: give an initial idea, so that foreign entrepreneurs can understand the main points.
You did not explain what difference between "Turnover" and "Trade Income" is on calculation Trade Tax? I get confused. Is it possible for you to show a model calculation as you did for Corporation Tax?
Dear Nexus thanks for your useful informations toward starting business in Germany, can I ask question regarding opening Kleingewerbe if I open e-commerce websites I will pay tax when I import the product and pay also when I sell the products? Danke schon.
Dear Ahmed, thank you for your comment. For a tax consultation please contact a tax adviser.
Anyone knows how do you calculate taxes if you got both self-employed and employed job (eg part time). I know for employed the employer will pay half of the medical insurance cost. So, how does it effect the medical tax when you also have self employed? Any recommendations of a good tax services?
I was watching a video on German tax rates and the host said the tax rate in Germany is 55%. This is incorrect. As you said if you’re making under €9700 you don’t pay any tax. The 55% tax rate applies to the highest income earners. Also, it is a nominal tax rate. If for example somebody’s making under €10 million per year they pay lower tax rate but once they get over €10 million a year they pay 55% tax rate on whatever they make after €10 million. So if they made €10 million they are taxed at a lower tax rate, not 55%, but if they make over €10 million, for example €10,100,000 then they pay 55% on that extra $100,000. The rest of the €10 million is taxed at a lower tax rate, which is called a nominal tax rate. I don’t know the specific numbers I’m just using this as an example. Can you do a video or explain to me how the nominal tax rate works for different income levels, not just the very rich but at all income levels and do all income levels have nominal tax rates? For example somebody making €50,000 per year would pay the lower tax rate on that €50,000 but if they made €51,000 they would pay a higher tax rate on that extra €1000. Another words they would be text differently on those two incomes. A different tax rate of €50,000 and the different tax rate on the extra €1000. Nominal tax rate.
Thank you for your comment. In our video we said no such thing. The topic of income tax is very complex and complicated. Maybe we'll make a video about it indeed to provide general information. However such matters should be discussed with a tax adviser in each specific case.
German tax system is very complicated!
You are right. That is why it makes sense to consult a tax adviser at the beginning of the company operation.
This is a very important topic!
We are glad to be useful.