Income tax declaration for contractors

Contractors get the tax status of being self-employed. Therefore no wage tax is deducted from their income. Based on estimated income or prior year’s income, quarterly tax prepayments have to be made. Monthly VAT statements have to be prepared and submitted. There are many ways to minimize your tax. Important options or ways to save taxes are:

  • Treatment of resident / non-resident in Germany. Depending on your individual case, we give consult to you which option is better to minimize your taxes
  • Under certain circumstances you can get material tax reliefs if you are married or have children, even if your wife and children do not live in Germany. We will inform you about your options.
  • We will tell you how to deduct a maximum of costs, i.e. tell you how to deduct
    • German apartment/ hotel costs
    • Travel costs to Germany and back home
    • Food allowances
    • Phone costs
    • Insurance costs
    • Project application costs
    • General allowances for office supply, banking fees, travel costs in Germany (e.g. your daily way to your office plant etc. )

Cosmotax provides compliance and accounting service to dozens of contractors and we will give you advice how to get your project in Germany started best. We will tell you :

  • How to get a bank account in Germany
  • Which insurances are important and which not
  • At which authorities you have to register
  • How to comply with German tax rules a
  • How to minimize your German taxes.

Call or email us to discuss your plans. We will show you how to comply and get the best return on investment.