The Unternehmergesellschaft (UG haftungsbeschränkt) or GmbH are taxed according to the principles of the so-called corporations. The following taxes are due:

  • Corporations pay corporate income tax on their profits in the amount of 15% of the profit.
  • In addition, corporations must pay a solidarity surcharge of 5.5% on the corporate income tax.

These taxes are far below those that a self-employed person would otherwise normally have to pay on his profits. This is particularly advantageous if the profits do not have to be paid out in full and can remain in the company.

When profits are distributed to the shareholders, a final withholding tax of 25% is also due, plus a further solidarity surcharge of 5.5% on this tax.