Germany GmbH / AG — Körperschaftsteuer, Gewerbesteuer & UStVA

Confirm legal form (GmbH, UG, AG, GmbH & Co. KG), registered Finanzamt, Steuernummer, and fiscal year end. Establish whether the company is subject to unbeschränkte Körperschaftsteuerpflicht (unlimited tax liability as a resident entity) or beschränkte Steuerpflicht (limited liability for non-resident entities with German-source income). Identify the relevant Veranlagungszeitraum.

Verify that the company bookkeeping is complete and that the Betriebswirtschaftliche Auswertung (BWA) for the fiscal year reconciles to the trial balance. Identify any year-end journal entries required (accruals, prepayments, depreciation runs). Confirm that all bank statements, supplier invoices, and payroll records have been processed in the accounting system (DATEV, Lexware, or equivalent).

Prepare the statutory Jahresabschluss under HGB (Handelsgesetzbuch): Bilanz (balance sheet) and Gewinn- und Verlustrechnung (P&L), plus Anhang (notes) for medium and large GmbHs. For small GmbHs (Kleinstkapitalgesellschaft), a simplified format applies. The Jahresabschluss forms the starting point for the tax balance sheet (Steuerbilanz) or the tax reconciliation (Überleitungsrechnung).

Compute the corporate income tax (Körperschaftsteuer) at the flat rate of 15% plus 5.5% Solidaritätszuschlag (effective 15.825%) on the zu versteuerndes Einkommen. Apply non-deductible items under §10 KStG (e.g., KSt itself, 5% non-deductible portion of tax-exempt dividends under §8b KStG), verdeckte Gewinnausschüttungen (vGA) adjustments, and any Verlustabzug (§10d EStG via §8 KStG). Prepare and e-file the Körperschaftsteuererklärung via ELSTER.

Compute Gewerbesteuer (trade tax) starting from the KSt Gewerbeertrag, applying Hinzurechnungen (add-backs under §8 GewStG: 25% of financing costs, lease payments, licence fees) and Kürzungen (deductions under §9 GewStG: 1.2% of Einheitswert for owned real property, Schachtelprivileg for subsidiary dividends). Apply the federal Steuermesszahl of 3.5% and the municipality Hebesatz to determine the Gewerbesteuer liability. Gewerbesteuer is NOT deductible for KSt purposes (§4 Abs. 5b EStG).

For VAT-registered GmbHs, reconcile all monthly or quarterly Umsatzsteuer-Voranmeldungen (UStVA) filed via ELSTER during the year against the annual Umsatzsteuerjahreserklärung (USt 2 A). Confirm correct treatment of standard rate (19%), reduced rate (7%), reverse-charge on B2B cross-border services (§13b UStG), and Vorsteuerabzug (input VAT recovery). The Kleinunternehmerregelung threshold rises to €25,000 prior-year and €100,000 current-year from 2025.

Reconcile Körperschaftsteuer and Gewerbesteuer quarterly prepayments (Vorauszahlungen — due 10 March, 10 June, 10 September, 10 December) against final assessed liabilities. Identify any Nachzahlung (balance due) or Erstattung (refund). Check for Nachzahlungszinsen (arrears interest at 0.15% per month after the 15-month interest-free period under §233a AO). Advise on adjusting next-year Vorauszahlungen via Herabsetzungsantrag to the Finanzamt.