German Company Taxes


The Einnahmen-Überschuss-Rechnung (short EÜR) must be submitted as an attachment to the income tax return of certain self-employed persons. It is an alternative to the balance sheet.

The balance sheet, as well as the company balance sheet, is very complex, costs a lot of time during the financial year, and different accounts must be kept and (ongoing) inventories need to carry out. The Einnahmen-Überschuss-Rechnung, on the other hand, is quite straightforward and can therefore be easily added to tax returns by laymen of tax law. On this, the operating income and the operating expenses are compared in a simple comparison and the profit is determined, which then has to be taxed.

What to look for at EÜR

If you issue an EÜR for tax declaration, you must first note that a separate EÜR plant has to be submitted to you for each of your operations. The submission must be made electronically, via the ElsterOnline portal or with the program Elster. You can also make an exception on request, for example, if you do not have a computer. Then you can submit the EÜR also on a paper form together with your tax declaration to the tax office. Do not forget that the sales tax paid to the tax office belongs to the operating expenses! Many entrepreneurs overlook this and thereby subject themselves to a tax disadvantage. If this error is discovered too late and the corresponding tax assessment is already final, the money for you is irretrievably lost.
When you can make a cash base accounting instead of a balance sheet.
In addition, all freelancers are exempted from drawing up a balance sheet unless they voluntarily create it. Also, all those who use the so-called "small business" regulation are not obliged to submit a balance sheet. This does not mean, however, that you should not be extremely careful when preparing the EÜR. Incorrect entries could be regarded as attempted tax fraud and lead to serious financial losses. In the case of uncertainties, you should be supported by a tax advisor.