Not tax advice. Computation tools only. Have a professional review before filing.
OOpenAccountants
openaccountants/skills/de-income-tax.md
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v20Germany
1---
2name: de-income-tax
3description: >
4 Use this skill whenever asked about German income tax (Einkommensteuer) for self-employed individuals (Freiberufler or Gewerbetreibende). Trigger on phrases like "how much tax do I pay in Germany", "Einkommensteuer", "Einkommensteuererklarung", "Anlage S", "Anlage G", "Anlage EUR", "Freiberufler tax", "Gewerbetreibende", "Solidaritatszuschlag", "Kirchensteuer", "Vorauszahlungen", "Betriebsausgaben", "AfA", "Abschreibung", "hausliches Arbeitszimmer", "Fahrtkosten", "Bewirtungskosten", "Grundfreibetrag", or any question about filing or computing income tax for a self-employed client in Germany. Covers Einkommensteuer progressive rates, Solidaritatszuschlag, Kirchensteuer, Anlage S/G/EUR structure, allowable Betriebsausgaben, AfA depreciation, home office, vehicle expenses, quarterly Vorauszahlungen, Gewerbesteuer credit, and interaction with Umsatzsteuer. ALWAYS read this skill before touching any German income tax work.
5version: 2.0
6jurisdiction: DE
7tax_year: 2025
8category: international
9depends_on:
10 - income-tax-workflow-base
11---
12 
13# Germany Income Tax (Einkommensteuer) -- Self-Employed Skill v2.0
14 
15---
16 
17## Section 1 -- Quick Reference
18 
19| Field | Value |
20|---|---|
21| Country | Germany (Bundesrepublik Deutschland) |
22| Tax | Einkommensteuer (ESt) + Solidaritatszuschlag (SolZ) + Kirchensteuer (KiSt, if applicable) |
23| Currency | EUR only |
24| Tax year | Calendar year (Kalenderjahr) |
25| Primary legislation | Einkommensteuergesetz (EStG) |
26| Supporting legislation | Abgabenordnung (AO); Gewerbesteuergesetz (GewStG); Umsatzsteuergesetz (UStG) |
27| Tax authority | Finanzamt (local tax office) |
28| Filing portal | ELSTER (elster.de) |
29| Filing deadline | 31 July of the following year (with Steuerberater: end of February of the year after next) |
30| Contributor | Open Accountants Community |
31| Validated by | Pending -- requires sign-off by a German Steuerberater |
32| Validation date | Pending |
33| Skill version | 2.0 |
34 
35### Tax Rate Brackets (2025)
36 
37| Taxable Income (EUR) | Rate | Notes |
38|---|---|---|
39| 0 -- 12,084 | 0% | Grundfreibetrag (basic allowance) |
40| 12,085 -- 17,005 | 14% -- 24% | Progressive zone 1 (linear-progressive) |
41| 17,006 -- 66,760 | 24% -- 42% | Progressive zone 2 (linear-progressive) |
42| 66,761 -- 277,825 | 42% | Proportionalzone (flat) |
43| 277,826+ | 45% | Reichensteuer (wealth tax surcharge) |
44 
45**Germany uses a FORMULA-BASED progressive rate, not simple bracket multiplication. Each euro is taxed at its own marginal rate within zones 1 and 2. Do not compute manually -- pass to the deterministic engine.**
46 
47### Solidaritatszuschlag (SolZ)
48 
49| Item | Value |
50|---|---|
51| Rate | 5.5% of the Einkommensteuer |
52| Exemption threshold (single) | ESt up to EUR 18,130 -- no SolZ |
53| Exemption threshold (married/joint) | ESt up to EUR 36,260 -- no SolZ |
54| Gleitzone (phase-in) | 11.9% marginal rate on ESt between threshold and full-rate zone |
55 
56### Kirchensteuer (KiSt)
57 
58| Item | Value |
59|---|---|
60| Rate (most Lander) | 9% of ESt |
61| Rate (Bavaria, Baden-Wurttemberg) | 8% of ESt |
62| Applicability | Only if taxpayer is a registered church member |
63 
64### Gewerbesteuer Credit
65 
66| Item | Value |
67|---|---|
68| Credit against ESt | Factor 4.0 x Gewerbesteuer-Messbetrag |
69| Cap | Cannot exceed actual Gewerbesteuer paid |
70| Applicability | Gewerbetreibende only -- Freiberufler do NOT pay Gewerbesteuer |
71 
72### Key Anlage EUR Lines
73 
74| Line | Description |
75|---|---|
76| Betriebseinnahmen | Gross business revenue (net of USt if registered) |
77| Raumkosten | Office costs (rent, utilities, home office) |
78| Fahrzeugkosten | Vehicle costs (business portion) |
79| Reisekosten | Travel expenses |
80| Bewirtungskosten | Business entertainment (70% deductible) |
81| Werbekosten | Marketing/advertising |
82| AfA (Abschreibungen) | Depreciation |
83| Nebenkosten Geldverkehr | Bank fees, payment processing |
84| Gewinn/Verlust | Net profit/loss |
85 
86### Conservative Defaults
87 
88| Ambiguity | Default |
89|---|---|
90| Unknown filing status | Single (Einzelveranlagung) |
91| Unknown church membership | No Kirchensteuer (0%) |
92| Unknown business-use % (vehicle, phone, home) | 0% deduction |
93| Unknown whether Freiberufler or Gewerbetreibende | Freiberufler (no Gewerbesteuer) until confirmed |
94| Unknown expense category | Not deductible |
95| Unknown depreciation useful life | Use official AfA-Tabelle |
96 
97---
98 
99## Section 2 -- Required Inputs and Refusal Catalogue
100 
101### Required Inputs
102 
103**Minimum viable** -- bank statement for the full tax year in CSV, PDF, or pasted text, plus confirmation of filing status (single/married/joint) and whether Freiberufler or Gewerbetreibende.
104 
105**Recommended** -- all Ausgangsrechnungen (outgoing invoices), Eingangsrechnungen (purchase invoices), Steuer-Identifikationsnummer, prior year Steuerbescheid (tax assessment).
106 
107**Ideal** -- complete Einnahmen-Uberschuss-Rechnung (EUR) from prior year, asset register (Anlageverzeichnis), Vorauszahlungsbescheid, all SSC (Sozialversicherung) contribution statements.
108 
109**Refusal if minimum is missing -- SOFT WARN.** No bank statement at all = hard stop. Bank statement without invoices = proceed with reviewer warning.
110 
111### Refusal Catalogue
112 
113**R-DE-1 -- Corporations (GmbH, UG, AG).** "This skill covers Einkommensteuer for natural persons only. Kapitalgesellschaften file Korperschaftsteuer. Out of scope."
114 
115**R-DE-2 -- Partnerships (GbR, OHG, KG).** "Partnership income is determined at partnership level (gesonderte und einheitliche Feststellung) and allocated to partners. Out of scope."
116 
117**R-DE-3 -- Non-resident limited taxpayer (beschrankt steuerpflichtig).** "Non-resident taxation has different rules and rate tables. Out of scope."
118 
119**R-DE-4 -- Complex capital gains (Verausserungsgewinne).** "Business disposals, real estate gains, and share disposals beyond the Sparerpauschbetrag require specialised computation. Escalate."
120 
121**R-DE-5 -- Double taxation / foreign income.** "Cross-border income requires Doppelbesteuerungsabkommen (DBA) analysis. Escalate."
122 
123---
124 
125## Section 3 -- Transaction Pattern Library
126 
127This is the deterministic pre-classifier. When a bank statement transaction matches a pattern below, apply the treatment directly. If none match, fall through to Tier 1 rules in Section 5.
128 
129### 3.1 Income Patterns (Credits on Bank Statement)
130 
131| Pattern | Tax Line | Treatment | Notes |
132|---|---|---|---|
133| KUNDENUEBERWEISUNG, KUNDENUBERWEISUNG, UBERWEISUNG [client name] | Betriebseinnahmen | Gross revenue on Anlage EUR | If USt-registered, extract net (excl. 19% USt) |
134| HONORAR, HONORARNOTE, VERGUETUNG | Betriebseinnahmen | Revenue | Professional fees -- typical Freiberufler |
135| PAYPAL PAYOUT, STRIPE PAYOUT, STRIPE TRANSFER | Betriebseinnahmen | Revenue | Platform payout -- match to underlying invoices |
136| GEHALT, LOHN, ARBEITGEBER [name] | Einkuenfte aus nichtselbstaendiger Arbeit (Anlage N) | NOT self-employment income | Employment income -- separate Anlage N |
137| MIETEINNAHME, MIETE ERHALTEN | Einkuenfte aus Vermietung (Anlage V) | NOT self-employment income | Rental income -- separate |
138| ZINSEN, ZINSERTRAG, KAPITALERTRAG | Einkuenfte aus Kapitalvermogen (Anlage KAP) | NOT self-employment income | Capital income -- Abgeltungsteuer 25% |
139| DIVIDENDE | Einkuenfte aus Kapitalvermogen | NOT self-employment income | Dividend |
140| ERSTATTUNG FINANZAMT, STEUERERSTATTUNG | EXCLUDE | Not income | Tax refund |
141| GUTSCHRIFT [supplier name] | Check context | Could be credit note or refund | If refund of expense: reduce expense. If revenue: add to income |
142 
143### 3.2 Expense Patterns (Debits on Bank Statement)
144 
145| Pattern | Tax Line (Anlage EUR) | Treatment | Notes |
146|---|---|---|---|
147| MIETE BUERO, BUEROMIETE, OFFICE RENT | Raumkosten | Fully deductible | Dedicated business premises |
148| ARBEITSZIMMER, HOME OFFICE | Raumkosten -- hausliches Arbeitszimmer | T2 -- see Section 6 | Max EUR 1,260/year Tagespauschale or actual |
149| FAHRTKOSTEN, TANKSTELLE, ARAL, SHELL, TOTAL | Fahrzeugkosten | T2 -- business portion only | Fahrtenbuch or 1%-Regelung required |
150| BAHNCARD, DEUTSCHE BAHN, DB FERNVERKEHR | Reisekosten | Fully deductible | Business travel |
151| FLUG, LUFTHANSA, RYANAIR, EASYJET | Reisekosten | Fully deductible | Business purpose flights |
152| BEWIRTUNG, RESTAURANT, GASTSTATTE | Bewirtungskosten | 70% deductible (ESt) | MUST have Bewirtungsbeleg |
153| FACHLITERATUR, BUCH, AMAZON (books) | Betriebsausgaben | Fully deductible | Professional literature |
154| FORTBILDUNG, SEMINAR, KURS, TRAINING | Fortbildungskosten | Fully deductible | Related to business activity |
155| TELEFON, TELEKOM, VODAFONE, O2 | Telekommunikation | T2 -- business portion only | Default 0% if mixed use |
156| INTERNET, DSL | Telekommunikation | T2 -- business portion only | |
157| VERSICHERUNG, BERUFSHAFTPFLICHT | Versicherungen | Fully deductible | Professional liability only; personal = not deductible |
158| STEUERBERATER, STEUERKANZLEI, BUCHHALTER | Beratungskosten | Fully deductible | |
159| RECHTSANWALT, ANWALT, KANZLEI | Rechtskosten | Fully deductible | Business-related legal only |
160| IHK, HANDWERKSKAMMER, BEITRAG | Beitrage | Fully deductible | Compulsory chamber fees |
161| BUROMATERIAL, STAPLES, VIKING | Burobedarf | Fully deductible | |
162| SOFTWARE, LIZENZ, SUBSCRIPTION | Betriebsausgaben (IT) | Fully deductible if under EUR 800 net | Over EUR 800: capitalise and depreciate |
163| WERBUNG, MARKETING, GOOGLE ADS, META ADS | Werbekosten | Fully deductible | |
164| KONTOFUHRUNGSGEBUHR, BANKGEBUHR | Nebenkosten Geldverkehr | Fully deductible | Business account |
165| PAYPAL FEE, STRIPE FEE | Nebenkosten Geldverkehr | Fully deductible | Transaction fees |
166 
167### 3.3 Expense Patterns -- NOT Deductible as Betriebsausgaben
168 
169| Pattern | Correct Treatment | Notes |
170|---|---|---|
171| KRANKENKASSE, AOK, TK, BARMER, DAK | Sonderausgabe (Anlage Vorsorgeaufwand) | NOT a business expense |
172| RENTENVERSICHERUNG, DRV | Sonderausgabe (Altersvorsorge) | NOT a business expense |
173| KUENSTLERSOZIALKASSE, KSK | Sonderausgabe | NOT a business expense |
174| FINANZAMT, EINKOMMENSTEUER, VORAUSZAHLUNG ESt | EXCLUDE | Income tax not deductible |
175| GEWERBESTEUER, GewSt | Betriebsausgabe | Deductible since 2008 (for Gewerbetreibende) |
176| PRIVATENTNAHME, EIGENBELEG PRIVAT | EXCLUDE | Drawings |
177| UMSATZSTEUER ZAHLUNG, USt VORAUSZAHLUNG | EXCLUDE from P&L | USt is balance sheet for Regelbesteuerung |
178| SPENDE, DONATION | Sonderausgabe | NOT a business expense |
179 
180### 3.4 SaaS -- EU Suppliers (Reverse Charge for USt; fully deductible for ESt)
181 
182| Pattern | ESt Treatment | Notes |
183|---|---|---|
184| GOOGLE, MICROSOFT, ADOBE, META, SLACK, ZOOM | Betriebsausgaben (IT) | Net amount deductible. Reverse charge USt separate. |
185| ATLASSIAN, DROPBOX, SPOTIFY (business) | Betriebsausgaben (IT) | Same |
186| STRIPE (subscription fee) | Betriebsausgaben | Separate from transaction fees |
187 
188### 3.5 SaaS -- Non-EU Suppliers
189 
190| Pattern | ESt Treatment | Notes |
191|---|---|---|
192| NOTION, ANTHROPIC, OPENAI, GITHUB, FIGMA, CANVA | Betriebsausgaben (IT) | Net amount deductible. Non-EU reverse charge for USt. |
193| AWS (check billing entity) | Betriebsausgaben (IT) | AWS EMEA SARL (LU) = EU; AWS Inc (US) = non-EU |
194 
195### 3.6 Internal Transfers and Exclusions
196 
197| Pattern | Treatment | Notes |
198|---|---|---|
199| UMBUCHUNG, EIGENUEBERWEISUNG, INTERNAL TRANSFER | EXCLUDE | Internal movement between own accounts |
200| DARLEHEN, KREDIT, TILGUNG | EXCLUDE | Loan principal -- not income or expense |
201| ZINSEN DARLEHEN (paid) | Betriebsausgaben (Schuldzinsen) | Interest on business loan: deductible |
202| BARGELDABHEBUNG, GELDAUTOMAT, ATM | T2 -- ask | Default exclude; ask what cash was spent on |
203 
204### 3.7 German Banks -- Statement Format Reference
205 
206| Bank | Format | Key Fields |
207|---|---|---|
208| Sparkasse, Volksbank | CSV, PDF | Buchungstag, Wertstellung, Verwendungszweck, Betrag |
209| Deutsche Bank, Commerzbank | CSV, MT940 | Valuta, Buchungstext, Auftraggeber/Empfanger, Betrag |
210| N26, Revolut | CSV | Date, Counterparty, Amount, Reference |
211| ING DiBa | CSV | Buchung, Auftraggeber/Empfanger, Verwendungszweck, Betrag |
212 
213---
214 
215## Section 4 -- Worked Examples
216 
217### Example 1 -- Freiberufler, Standard Income
218 
219**Input line:**
220`15.03.2025 ; KUNDENUEBERWEISUNG STUDIO KREBS GMBH ; CREDIT ; Honorar Maerz 2025 ; +4,500.00 ; EUR`
221 
222**Reasoning:**
223Client payment for professional services. Freiberufler income. If USt-registered (Regelbesteuerung), EUR 4,500 may include 19% USt. Check invoice: if EUR 4,500 gross, net = EUR 3,781.51 (Betriebseinnahme) + EUR 718.49 (USt liability). If Kleinunternehmer (s19 UStG), full EUR 4,500 is income.
224 
225**Classification:** Betriebseinnahmen on Anlage EUR / Anlage S.
226 
227### Example 2 -- Bewirtung (Business Entertainment)
228 
229**Input line:**
230`22.04.2025 ; RESTAURANT GOLDENER HIRSCH ; DEBIT ; Bewirtung Kundentreffen ; -180.00 ; EUR`
231 
232**Reasoning:**
233Bewirtungskosten are 70% deductible for ESt (s4 Abs.5 Nr.2 EStG). The full Vorsteuer (19% USt) is recoverable for USt purposes if a proper Bewirtungsbeleg exists. Without Bewirtungsbeleg: 0% deductible.
234 
235**Classification:** ESt: EUR 180.00 x 70% = EUR 126.00 deductible. EUR 54.00 not deductible. USt: EUR 28.74 Vorsteuer 100% recoverable with proper Beleg.
236 
237### Example 3 -- Home Office (Arbeitszimmer)
238 
239**Input line:**
240`01.01.2025 ; VERMIETER MUELLER ; DEBIT ; Miete inkl. Nebenkosten ; -850.00 ; EUR`
241 
242**Reasoning:**
243Monthly rent. Home office deduction depends on arrangement:
244- **Tagespauschale:** EUR 6/day, max 210 days = EUR 1,260/year. Available regardless of room arrangement.
245- **Dedicated room (Mittelpunkt):** If separate room, exclusively for work, AND centre of all professional activity, full actual costs deductible (proportional by floor area).
246- **No dedicated room:** Tagespauschale only.
247 
248**Classification:** T2 -- ask client about room arrangement. Default: Tagespauschale EUR 1,260/year.
249 
250### Example 4 -- Vehicle Fuel
251 
252**Input line:**
253`10.05.2025 ; ARAL TANKSTELLE BERLIN ; DEBIT ; Diesel ; -85.00 ; EUR`
254 
255**Reasoning:**
256Fuel purchase. Vehicle expenses require either Fahrtenbuch (logbook), 1%-Regelung, or Kilometerpauschale. Without confirmed method: 0% deduction.
257 
258**Classification:** T2 -- ask which method. Default: 0% deduction until confirmed.
259 
260### Example 5 -- Software Subscription Under EUR 800
261 
262**Input line:**
263`03.06.2025 ; ADOBE SYSTEMS ; DEBIT ; Creative Cloud Jahresabo ; -713.88 ; EUR`
264 
265**Reasoning:**
266Annual subscription under EUR 800 net. Subscription (not perpetual licence) = Betriebsausgabe in full in year paid, regardless of EUR 800 threshold.
267 
268**Classification:** Betriebsausgaben (IT/Software). Fully deductible.
269 
270### Example 6 -- Health Insurance (NOT Business Expense)
271 
272**Input line:**
273`15.01.2025 ; TECHNIKER KRANKENKASSE ; DEBIT ; Krankenversicherung Jan 2025 ; -450.00 ; EUR`
274 
275**Reasoning:**
276Health insurance is a Sonderausgabe on the main return, NOT a Betriebsausgabe on Anlage EUR.
277 
278**Classification:** EXCLUDE from Anlage EUR. Record as Sonderausgabe (Anlage Vorsorgeaufwand).
279 
280---
281 
282## Section 5 -- Tier 1 Rules (When Data Is Clear)
283 
284### 5.1 Betriebseinnahmen (Business Revenue)
285 
286**Legislation:** EStG s4 Abs.1, s15 (Gewerbebetrieb), s18 (freiberufliche Tatigkeit)
287 
288All business income is Betriebseinnahmen. For USt-registered, report net of USt on Anlage EUR. For Kleinunternehmer (s19 UStG), report gross.
289 
290### 5.2 Betriebsausgaben (Business Expenses)
291 
292**Legislation:** EStG s4 Abs.4
293 
294Expenses are deductible if caused by the business (betrieblich veranlasst). Germany allows apportionment of mixed-use expenses where business and private portions can be objectively separated.
295 
296### 5.3 Geringwertige Wirtschaftsguter (GWG / Low-Value Assets)
297 
298| Net Cost (excl. USt) | Treatment |
299|---|---|
300| Up to EUR 250 | Immediate full deduction, no asset register |
301| EUR 250.01 -- EUR 800 | Immediate full deduction OR Sammelposten. Asset register required. |
302| EUR 800.01 -- EUR 1,000 | Sammelposten option: pool, depreciate 5 years (20%/year) |
303| Over EUR 1,000 | Normal AfA over useful life per AfA-Tabelle |
304 
305### 5.4 AfA (Depreciation)
306 
307**Legislation:** EStG s7
308 
309| Asset Type | Useful Life | Annual Rate |
310|---|---|---|
311| Computer hardware (incl. peripherals) | 1 year (since 2021 BMF ruling) | 100% |
312| Computer software | 1 year | 100% |
313| Office furniture | 13 years | ~7.7% |
314| Motor vehicles | 6 years | ~16.7% |
315| Office equipment (printers, copiers) | 7 years | ~14.3% |
316| Mobile phones | 5 years | 20% |
317| Buildings (commercial) | 33 or 50 years | 3% or 2% |
318 
319**Computer hardware and software:** Since BMF ruling of 26.02.2021, digital assets can be written off in full in the year of acquisition regardless of cost.
320 
321### 5.5 Non-Deductible Expenses
322 
323| Expense | Reason |
324|---|---|
325| Einkommensteuer, SolZ, KiSt | Tax on income -- s12 Nr.3 EStG |
326| Private living expenses | s12 Nr.1 EStG |
327| Fines and penalties (Geldstrafen, Busgelder) | s4 Abs.5 Nr.8 EStG |
328| Gifts to business partners over EUR 50/person/year | s4 Abs.5 Nr.1 EStG |
329| 30% of Bewirtungskosten | s4 Abs.5 Nr.2 EStG |
330| Personal insurance (life, household) | Sonderausgabe, not Betriebsausgabe |
331 
332### 5.6 Vorauszahlungen (Quarterly Prepayments)
333 
334**Legislation:** EStG s37
335 
336| Instalment | Deadline |
337|---|---|
338| Q1 | 10 March |
339| Q2 | 10 June |
340| Q3 | 10 September |
341| Q4 | 10 December |
342 
343Based on most recent Steuerbescheid. First year: Finanzamt estimates.
344 
345### 5.7 Filing Deadlines
346 
347| Scenario | Deadline |
348|---|---|
349| Self-filed (without Steuerberater) | 31 July of following year |
350| Filed by Steuerberater | End of February, year after next |
351| USt Voranmeldungen | 10th of following month/quarter |
352 
353### 5.8 Penalties
354 
355| Offence | Penalty |
356|---|---|
357| Late filing (Verspatungszuschlag) | 0.25% of assessed tax per month, min EUR 25/month |
358| Late payment (Saumiszuschlag) | 1% per commenced month on unpaid tax |
359| Interest on late assessment | 0.15% per month (from 15 months after year end) |
360| Incorrect return | Up to EUR 25,000; criminal penalties for fraud |
361 
362### 5.9 Interaction with Umsatzsteuer (USt)
363 
364| Scenario | Income Tax Treatment |
365|---|---|
366| USt collected (Regelbesteuerung) | NOT income -- report net on Anlage EUR |
367| Vorsteuer recovered | NOT an expense -- report net on Anlage EUR |
368| Vorsteuer blocked (e.g., 30% Bewirtung for ESt, 100% for USt) | ESt and USt have DIFFERENT rules |
369| Kleinunternehmer (s19 UStG) | No USt charged; all costs gross including USt paid |
370| Reverse-charge on imports | Net effect zero for USt; net cost deductible for ESt |
371 
372---
373 
374## Section 6 -- Tier 2 Catalogue (Reviewer Judgement Required)
375 
376### 6.1 Home Office (Hausliches Arbeitszimmer)
377 
378| Scenario | Deduction | Condition |
379|---|---|---|
380| No dedicated room | Tagespauschale: EUR 6/day, max EUR 1,260/year | Available to all who work from home |
381| Dedicated room, not Mittelpunkt | Tagespauschale only (since 2023 reform) | Room exists but works elsewhere too |
382| Dedicated room, Mittelpunkt der Tatigkeit | Full actual costs (pro-rata by floor area) | Centre of ALL professional activity |
383 
384**Flag for reviewer:** Confirm room arrangement, floor area ratio, Mittelpunkt status.
385 
386### 6.2 Vehicle Business Use
387 
388| Method | How It Works |
389|---|---|
390| Fahrtenbuch | Actual costs x (business km / total km). Must be contemporaneous, complete, unchangeable. |
391| 1%-Regelung | Private use = 1% x Bruttolistenpreis/month added as income. All costs deductible. |
392| Kilometerpauschale | EUR 0.30/km for business trips. No actual cost records needed. No Vorsteuer. |
393 
394**Flag for reviewer:** Confirm method and business-use percentage.
395 
396### 6.3 Phone / Internet Mixed Use
397 
398Default: 0% deduction. Options:
399- **Flat rate:** 20% of phone/internet costs, capped EUR 20/month, without records
400- **Actual records:** Higher % with 3-month representative usage log
401 
402### 6.4 Geschenke (Business Gifts)
403 
404- Deductible up to EUR 50 net per person per year (since 2024)
405- Must record individually with recipient name
406- Over EUR 50: entire amount non-deductible (not just excess)
407 
408---
409 
410## Section 7 -- Excel Working Paper Template
411 
412```
413EINNAHMEN-UBERSCHUSS-RECHNUNG (EUR) -- Working Paper
414Tax Year: 2025
415Client: ___________________________
416Status: Freiberufler / Gewerbetreibende
417 
418A. BETRIEBSEINNAHMEN
419 A1. Umsatzerlose (net of USt if registered) ___________
420 A2. Sonstige Betriebseinnahmen ___________
421 A3. Total Betriebseinnahmen (A1 + A2) ___________
422 
423B. BETRIEBSAUSGABEN
424 B1. Wareneinsatz / Fremdleistungen ___________
425 B2. Raumkosten (Miete, Nebenkosten) ___________
426 B3. Arbeitszimmer (Pauschale or actual) ___________
427 B4. Versicherungen (business only) ___________
428 B5. Fahrzeugkosten ___________
429 B6. Reisekosten ___________
430 B7. Bewirtungskosten (70% of gross) ___________
431 B8. Werbekosten ___________
432 B9. Buro- und Verwaltungskosten ___________
433 B10. Telekommunikation (business %) ___________
434 B11. Fortbildungskosten ___________
435 B12. Beratungskosten (StB, RA) ___________
436 B13. Abschreibungen (AfA) ___________
437 B14. Nebenkosten Geldverkehr (bank fees) ___________
438 B15. Sonstige Betriebsausgaben ___________
439 B16. Total Betriebsausgaben (B1-B15) ___________
440 
441C. GEWINN / VERLUST (A3 - B16) ___________
442 
443REVIEWER FLAGS:
444 [ ] Freiberufler or Gewerbetreibende confirmed?
445 [ ] Filing status confirmed (single/married)?
446 [ ] Church membership confirmed?
447 [ ] Home office method confirmed?
448 [ ] Vehicle method confirmed?
449 [ ] Bewirtungsbelege available?
450 [ ] All T2 items flagged for review?
451```
452 
453---
454 
455## Section 8 -- Bank Statement Reading Guide
456 
457### German Bank Statement Formats
458 
459| Bank | Format | Key Fields |
460|---|---|---|
461| Sparkasse, Volksbank | CSV, PDF | Buchungstag, Wertstellung, Verwendungszweck, Betrag |
462| Deutsche Bank, Commerzbank | CSV, MT940 | Valuta, Buchungstext, Auftraggeber/Empfanger, Betrag |
463| N26, Revolut | CSV | Date, Counterparty, Amount, Reference |
464| ING DiBa | CSV | Buchung, Auftraggeber/Empfanger, Verwendungszweck, Betrag |
465 
466### Key German Banking Terms
467 
468| German Term | English | Classification Hint |
469|---|---|---|
470| Gutschrift | Credit (incoming) | Potential income |
471| Lastschrift | Direct debit (outgoing) | Potential expense |
472| Uberweisung | Bank transfer | Check direction |
473| Dauerauftrag | Standing order | Regular expense |
474| Kartenzahlung | Card payment | Expense |
475| Bargeldabhebung | Cash withdrawal | Ask what it was for |
476| Abschluss | Bank charges | Nebenkosten Geldverkehr |
477 
478---
479 
480## Section 9 -- Onboarding Fallback
481 
482If the client provides a bank statement but cannot answer onboarding questions immediately:
483 
4841. Classify all transactions using the pattern library (Section 3)
4852. Mark all T2 items as "PENDING -- reviewer must confirm"
4863. Apply conservative defaults (Section 1)
4874. Generate the working paper with clear flags
4885. Present the following questions to the client:
489 
490```
491ONBOARDING QUESTIONS -- GERMANY INCOME TAX
4921. Are you Freiberufler or Gewerbetreibende?
4932. Filing status: Einzelveranlagung (single) or Zusammenveranlagung (joint)?
4943. Church member (evangelisch, katholisch, other, or none)?
4954. Home office: dedicated room or shared space?
4965. Vehicle: Fahrtenbuch, 1%-Regelung, or Kilometerpauschale?
4976. Phone/internet: what percentage is business use?
4987. Do you have a Steuerberater filing on your behalf?
4998. Prior year Steuerbescheid available?
500```
501 
502---
503 
504## Section 10 -- Reference Material
505 
506### Key Legislation References
507 
508| Topic | Section |
509|---|---|
510| Business income (Gewerbebetrieb) | EStG s15 |
511| Freiberufliche Tatigkeit | EStG s18 |
512| Business expenses | EStG s4 Abs.4 |
513| Non-deductible expenses | EStG s4 Abs.5, s12 |
514| AfA depreciation | EStG s7 |
515| GWG low-value assets | EStG s6 Abs.2 |
516| Bewirtungskosten | EStG s4 Abs.5 Nr.2 |
517| Geschenke (gifts) | EStG s4 Abs.5 Nr.1 |
518| Arbeitszimmer | EStG s4 Abs.5 Nr.6b / Nr.6c (Tagespauschale) |
519| Vorauszahlungen | EStG s37 |
520| Solidaritatszuschlag | SolZG |
521| Kirchensteuer | KiStG (Lander) |
522| Gewerbesteuer credit | EStG s35 |
523 
524### Test Suite
525 
526**Test 1 -- Freiberufler, mid-range income.**
527Input: Single, no church, Freiberufler, Betriebseinnahmen EUR 60,000, Betriebsausgaben EUR 15,000. Gewinn EUR 45,000.
528Expected: Apply formula-based progressive rate to EUR 45,000. SolZ likely below exemption threshold. No GewSt.
529 
530**Test 2 -- Bewirtung correctly limited.**
531Input: EUR 500 Bewirtungskosten claimed.
532Expected: EUR 350 deductible (70%). EUR 150 not deductible.
533 
534**Test 3 -- Computer hardware full write-off.**
535Input: Laptop EUR 2,500 purchased.
536Expected: Full deduction in year of acquisition (BMF 2021 ruling). 100% AfA.
537 
538**Test 4 -- Health insurance excluded.**
539Input: TK Krankenversicherung EUR 5,400.
540Expected: EXCLUDE from Anlage EUR. Sonderausgabe on Anlage Vorsorgeaufwand.
541 
542**Test 5 -- Geschenke over limit.**
543Input: EUR 80 gift to business partner.
544Expected: Over EUR 50 limit. Entire EUR 80 non-deductible.
545 
546**Test 6 -- Kleinunternehmer gross reporting.**
547Input: Kleinunternehmer, invoice EUR 1,000 (no USt charged).
548Expected: Full EUR 1,000 is Betriebseinnahme. All purchase costs at gross.
549 
550---
551 
552## PROHIBITIONS
553 
554- NEVER compute Einkommensteuer using simple bracket multiplication -- use formula-based progressive rate
555- NEVER include Krankenversicherung or Rentenversicherung as Betriebsausgaben -- they are Sonderausgaben
556- NEVER allow more than 70% of Bewirtungskosten as Betriebsausgabe
557- NEVER allow Geschenke over EUR 50 per person per year
558- NEVER allow Einkommensteuer, SolZ, or KiSt as deductible expenses
559- NEVER allow fines or penalties as deductible
560- NEVER apply Gewerbesteuer to a Freiberufler
561- NEVER deduct vehicle expenses without confirming the method
562- NEVER deduct home office beyond EUR 1,260 Tagespauschale without confirming Mittelpunkt
563- NEVER present tax calculations as definitive -- direct client to Steuerberater
564 
565---
566 
567## Disclaimer
568 
569This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a Steuerberater or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
570 
571The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.
572 

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About

Use this skill whenever asked about German income tax (Einkommensteuer) for self-employed individuals (Freiberufler or Gewerbetreibende). Trigger on phrases like "how much tax do I pay in Germany", "Einkommensteuer", "Einkommensteuererklarung", "Anlage S", "Anlage G", "Anlage EUR", "Freiberufler tax", "Gewerbetreibende", "Solidaritatszuschlag", "Kirchensteuer", "Vorauszahlungen", "Betriebsausgaben", "AfA", "Abschreibung", "hausliches Arbeitszimmer", "Fahrtkosten", "Bewirtungskosten", "Grundfreibetrag", or any question about filing or computing income tax for a self-employed client in Germany. Covers Einkommensteuer progressive rates, Solidaritatszuschlag, Kirchensteuer, Anlage S/G/EUR structure, allowable Betriebsausgaben, AfA depreciation, home office, vehicle expenses, quarterly Vorauszahlungen, Gewerbesteuer credit, and interaction with Umsatzsteuer. ALWAYS read this skill before touching any German income tax work.

DEty-2025

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