wzk partner. provides excellent accounting, tax and legal services throughout Germany.
We have a long history in supporting subsidiaries of international companies that operate in Germany as well as German corporates and individuals.
We are based in Munich but our services are available throughout Germany. We offer online accounting solutions that provide online access to your accounting data.
You can control your operations in Germany from wherever you are.
Handelsblatt - the leading German business newspaper - has rated us as Top Tax Advisers 2016 in 3 fields.We take that as a challenge in providing excellent services for our clients every day.
We have extensive experience of working with and advising companies in the production, service, media, technology, e-commerce and digital media sectors. Our work has brought us into contact with companies operating internationally, nationally and locally and through this experience we have developed a very good understanding of the issues you are likely to be facing in Germany in the future.
How does accounting work in Germany?
It is of practical importance to recognize that commercial accounts in Germany are linked directly with tax accounts. According to the authoritative principle (Maßgeblichkeitsprinzip), which is incorporated in Sec. 5 of the German Income Tax Law commercial financial statements form an authoritative basis for tax accounts. Tax accounts do not represent an independent set of accounts but are derived from the commercial accounts.
As a consequence, the accounting treatment in the commercial financial statements in general directly affects the tax position of a company. In addition, most of the tax incentives can be claimed only if the same treatment is applied to the items in question in the commercial financial statements. In practice this often leads to a reversal of the authoritative nature of commercial financial statements for the tax accounts.
As a result, German companies are compelled to value their assets at the lowest amount possible and their liabilities at the highest amount possible under GAAP in their commercial financial statements in order to minimize their tax liability. Furthermore, in order to benefit from tax incentives, they may be led to record in their commercial accounts special tax-allowed depreciation and reserves. To avoid the potentially misleading effects resulting from the departure from the true and fair view, such accounting practices must be explained in the notes.
It should be noted, that the application of the authoritative principle has become much less restrictive in recent years and that there is now a growing number of different accounting treatments in tax accounts.
Our mission: We will help you to ensure that you stay ahead of the game on all relevant issues across the financial, accounting, taxation and regulatory spectrum.
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