CIT in Germany
CIT / corporate tax
CITis an abbreviation of "Corporate Income Tax". CIT understood in this way should be compared with the German Körperschaftssteuer tax.
CIT corporate tax
We prepare balance sheets and tax declarations for capital companies in Germany.
Corporate income tax, KöSt, is imposed on the profits of legal persons, i.e. German limited companies GmbH and joint stock companies AG. It amounts to 15% of companies' tax result in Germany. Unfortunately, the actual tax burden on capital companies' profits is not limited to this tax. The companies still have to pay Gewerbesteuer and Solidaritätszuschlag, which together means a tax burden on German legal entities of 31%.
The tax costs of operating as capital companies also include taxing the dividend paid to shareholders.
The tax costs of operating as capital companies also include taxing the dividend paid to shareholders.