How do I install the De Income Tax skill?

Run npx skillmds@latest add openaccountants/de-income-tax in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

What does the De Income Tax skill do?

> Use this skill whenever asked about German income tax (Einkommensteuer) for self-employed individuals (Freiberufler or Gewerbetreibende). Trigger on phrases like "how much tax do I pay in Germany", "Einkommensteuer", "Einkommensteuererklarung", "Anlage S", "Anlage G", "Anlage EUR", "Freiberufler tax", "Gewerbetreibende", "Solidaritatszuschlag", "Kirchensteuer", "Vorauszahlungen", "Betriebsausgaben", "AfA", "Abschreibung", "hausliches Arbeitszimmer", "Fahrtkosten", "Bewirtungskosten", "Grundfreibetrag", or any question about filing or computing income tax for a self-employed client in Germany. Covers Einkommensteuer progressive rates, Solidaritatszuschlag, Kirchensteuer, Anlage S/G/EUR structure, allowable Betriebsausgaben, AfA depreciation, home office, vehicle expenses, quarterly Vorauszahlungen, Gewerbesteuer credit, and interaction with Umsatzsteuer. ALWAYS read this skill before touching any German income tax work. It is listed under AI & ML on SkillMD.

Is De Income Tax safe to use?

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Is De Income Tax free to use?

Yes. Installing skills from SkillMD is free. This skill is licensed under AGPL-3.

Who published De Income Tax?

openaccountants (@openaccountants) published this skill. Their other Agent Skills are listed on their SkillMD profile.

De Income Tax by openaccountants — Agent Skill

Name: De Income Tax
Author: openaccountants

Germany Income Tax (Einkommensteuer) -- Self-Employed Skill v2.0

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

Section 1 -- Quick Reference

Field	Value
Country	Germany (Bundesrepublik Deutschland)
Tax	Einkommensteuer (ESt) + Solidaritatszuschlag (SolZ) + Kirchensteuer (KiSt, if applicable)
Currency	EUR only
Tax year	Calendar year (Kalenderjahr)
Primary legislation	Einkommensteuergesetz (EStG)
Supporting legislation	Abgabenordnung (AO); Gewerbesteuergesetz (GewStG); Umsatzsteuergesetz (UStG)
Tax authority	Finanzamt (local tax office)
Filing portal	ELSTER (elster.de)
Filing deadline	31 July of the following year (with Steuerberater: end of February of the year after next)
Contributor	Open Accountants Community
Validated by	Pending -- requires sign-off by a German Steuerberater
Validation date	Pending
Skill version	2.0

Tax Rate Brackets (2025)

Taxable Income (EUR)	Rate	Notes
0 -- 12,084	0%	Grundfreibetrag (basic allowance)
12,085 -- 17,005	14% -- 24%	Progressive zone 1 (linear-progressive)
17,006 -- 66,760	24% -- 42%	Progressive zone 2 (linear-progressive)
66,761 -- 277,825	42%	Proportionalzone (flat)
277,826+	45%	Reichensteuer (wealth tax surcharge)

Germany uses a FORMULA-BASED progressive rate, not simple bracket multiplication. Each euro is taxed at its own marginal rate within zones 1 and 2. Do not compute manually -- pass to the deterministic engine.

Solidaritatszuschlag (SolZ)

Item	Value
Rate	5.5% of the Einkommensteuer
Exemption threshold (single)	ESt up to EUR 18,130 -- no SolZ
Exemption threshold (married/joint)	ESt up to EUR 36,260 -- no SolZ
Gleitzone (phase-in)	11.9% marginal rate on ESt between threshold and full-rate zone

Kirchensteuer (KiSt)

Item	Value
Rate (most Lander)	9% of ESt
Rate (Bavaria, Baden-Wurttemberg)	8% of ESt
Applicability	Only if taxpayer is a registered church member

Gewerbesteuer Credit

Item	Value
Credit against ESt	Factor 4.0 x Gewerbesteuer-Messbetrag
Cap	Cannot exceed actual Gewerbesteuer paid
Applicability	Gewerbetreibende only -- Freiberufler do NOT pay Gewerbesteuer

Key Anlage EUR Lines

Line	Description
Betriebseinnahmen	Gross business revenue (net of USt if registered)
Raumkosten	Office costs (rent, utilities, home office)
Fahrzeugkosten	Vehicle costs (business portion)
Reisekosten	Travel expenses
Bewirtungskosten	Business entertainment (70% deductible)
Werbekosten	Marketing/advertising
AfA (Abschreibungen)	Depreciation
Nebenkosten Geldverkehr	Bank fees, payment processing
Gewinn/Verlust	Net profit/loss

Conservative Defaults

Ambiguity	Default
Unknown filing status	Single (Einzelveranlagung)
Unknown church membership	No Kirchensteuer (0%)
Unknown business-use % (vehicle, phone, home)	0% deduction
Unknown whether Freiberufler or Gewerbetreibende	Freiberufler (no Gewerbesteuer) until confirmed
Unknown expense category	Not deductible
Unknown depreciation useful life	Use official AfA-Tabelle

Section 2 -- Required Inputs and Refusal Catalogue

Required Inputs

Minimum viable -- bank statement for the full tax year in CSV, PDF, or pasted text, plus confirmation of filing status (single/married/joint) and whether Freiberufler or Gewerbetreibende.

Recommended -- all Ausgangsrechnungen (outgoing invoices), Eingangsrechnungen (purchase invoices), Steuer-Identifikationsnummer, prior year Steuerbescheid (tax assessment).

Ideal -- complete Einnahmen-Uberschuss-Rechnung (EUR) from prior year, asset register (Anlageverzeichnis), Vorauszahlungsbescheid, all SSC (Sozialversicherung) contribution statements.

Refusal if minimum is missing -- SOFT WARN. No bank statement at all = hard stop. Bank statement without invoices = proceed with reviewer warning.

Refusal Catalogue

R-DE-1 -- Corporations (GmbH, UG, AG). "This skill covers Einkommensteuer for natural persons only. Kapitalgesellschaften file Korperschaftsteuer. Out of scope."

R-DE-2 -- Partnerships (GbR, OHG, KG). "Partnership income is determined at partnership level (gesonderte und einheitliche Feststellung) and allocated to partners. Out of scope."

R-DE-3 -- Non-resident limited taxpayer (beschrankt steuerpflichtig). "Non-resident taxation has different rules and rate tables. Out of scope."

R-DE-4 -- Complex capital gains (Verausserungsgewinne). "Business disposals, real estate gains, and share disposals beyond the Sparerpauschbetrag require specialised computation. Escalate."

R-DE-5 -- Double taxation / foreign income. "Cross-border income requires Doppelbesteuerungsabkommen (DBA) analysis. Escalate."

Section 3 -- Transaction Pattern Library

This is the deterministic pre-classifier. When a bank statement transaction matches a pattern below, apply the treatment directly. If none match, fall through to Tier 1 rules in Section 5.

3.1 Income Patterns (Credits on Bank Statement)

Pattern	Tax Line	Treatment	Notes
KUNDENUEBERWEISUNG, KUNDENUBERWEISUNG, UBERWEISUNG [client name]	Betriebseinnahmen	Gross revenue on Anlage EUR	If USt-registered, extract net (excl. 19% USt)
HONORAR, HONORARNOTE, VERGUETUNG	Betriebseinnahmen	Revenue	Professional fees -- typical Freiberufler
PAYPAL PAYOUT, STRIPE PAYOUT, STRIPE TRANSFER	Betriebseinnahmen	Revenue	Platform payout -- match to underlying invoices
GEHALT, LOHN, ARBEITGEBER [name]	Einkuenfte aus nichtselbstaendiger Arbeit (Anlage N)	NOT self-employment income	Employment income -- separate Anlage N
MIETEINNAHME, MIETE ERHALTEN	Einkuenfte aus Vermietung (Anlage V)	NOT self-employment income	Rental income -- separate
ZINSEN, ZINSERTRAG, KAPITALERTRAG	Einkuenfte aus Kapitalvermogen (Anlage KAP)	NOT self-employment income	Capital income -- Abgeltungsteuer 25%
DIVIDENDE	Einkuenfte aus Kapitalvermogen	NOT self-employment income	Dividend
ERSTATTUNG FINANZAMT, STEUERERSTATTUNG	EXCLUDE	Not income	Tax refund
GUTSCHRIFT [supplier name]	Check context	Could be credit note or refund	If refund of expense: reduce expense. If revenue: add to income

3.2 Expense Patterns (Debits on Bank Statement)

Pattern	Tax Line (Anlage EUR)	Treatment	Notes
MIETE BUERO, BUEROMIETE, OFFICE RENT	Raumkosten	Fully deductible	Dedicated business premises
ARBEITSZIMMER, HOME OFFICE	Raumkosten -- hausliches Arbeitszimmer	T2 -- see Section 6	Max EUR 1,260/year Tagespauschale or actual
FAHRTKOSTEN, TANKSTELLE, ARAL, SHELL, TOTAL	Fahrzeugkosten	T2 -- business portion only	Fahrtenbuch or 1%-Regelung required
BAHNCARD, DEUTSCHE BAHN, DB FERNVERKEHR	Reisekosten	Fully deductible	Business travel
FLUG, LUFTHANSA, RYANAIR, EASYJET	Reisekosten	Fully deductible	Business purpose flights
BEWIRTUNG, RESTAURANT, GASTSTATTE	Bewirtungskosten	70% deductible (ESt)	MUST have Bewirtungsbeleg
FACHLITERATUR, BUCH, AMAZON (books)	Betriebsausgaben	Fully deductible	Professional literature
FORTBILDUNG, SEMINAR, KURS, TRAINING	Fortbildungskosten	Fully deductible	Related to business activity
TELEFON, TELEKOM, VODAFONE, O2	Telekommunikation	T2 -- business portion only	Default 0% if mixed use
INTERNET, DSL	Telekommunikation	T2 -- business portion only
VERSICHERUNG, BERUFSHAFTPFLICHT	Versicherungen	Fully deductible	Professional liability only; personal = not deductible
STEUERBERATER, STEUERKANZLEI, BUCHHALTER	Beratungskosten	Fully deductible
RECHTSANWALT, ANWALT, KANZLEI	Rechtskosten	Fully deductible	Business-related legal only
IHK, HANDWERKSKAMMER, BEITRAG	Beitrage	Fully deductible	Compulsory chamber fees
BUROMATERIAL, STAPLES, VIKING	Burobedarf	Fully deductible
SOFTWARE, LIZENZ, SUBSCRIPTION	Betriebsausgaben (IT)	Fully deductible if under EUR 800 net	Over EUR 800: capitalise and depreciate
WERBUNG, MARKETING, GOOGLE ADS, META ADS	Werbekosten	Fully deductible
KONTOFUHRUNGSGEBUHR, BANKGEBUHR	Nebenkosten Geldverkehr	Fully deductible	Business account
PAYPAL FEE, STRIPE FEE	Nebenkosten Geldverkehr	Fully deductible	Transaction fees

3.3 Expense Patterns -- NOT Deductible as Betriebsausgaben

Pattern	Correct Treatment	Notes
KRANKENKASSE, AOK, TK, BARMER, DAK	Sonderausgabe (Anlage Vorsorgeaufwand)	NOT a business expense
RENTENVERSICHERUNG, DRV	Sonderausgabe (Altersvorsorge)	NOT a business expense
KUENSTLERSOZIALKASSE, KSK	Sonderausgabe	NOT a business expense
FINANZAMT, EINKOMMENSTEUER, VORAUSZAHLUNG ESt	EXCLUDE	Income tax not deductible
GEWERBESTEUER, GewSt	Betriebsausgabe	Deductible since 2008 (for Gewerbetreibende)
PRIVATENTNAHME, EIGENBELEG PRIVAT	EXCLUDE	Drawings
UMSATZSTEUER ZAHLUNG, USt VORAUSZAHLUNG	EXCLUDE from P&L	USt is balance sheet for Regelbesteuerung
SPENDE, DONATION	Sonderausgabe	NOT a business expense

3.4 SaaS -- EU Suppliers (Reverse Charge for USt; fully deductible for ESt)

Pattern	ESt Treatment	Notes
GOOGLE, MICROSOFT, ADOBE, META, SLACK, ZOOM	Betriebsausgaben (IT)	Net amount deductible. Reverse charge USt separate.
ATLASSIAN, DROPBOX, SPOTIFY (business)	Betriebsausgaben (IT)	Same
STRIPE (subscription fee)	Betriebsausgaben	Separate from transaction fees

3.5 SaaS -- Non-EU Suppliers

Pattern	ESt Treatment	Notes
NOTION, ANTHROPIC, OPENAI, GITHUB, FIGMA, CANVA	Betriebsausgaben (IT)	Net amount deductible. Non-EU reverse charge for USt.
AWS (check billing entity)	Betriebsausgaben (IT)	AWS EMEA SARL (LU) = EU; AWS Inc (US) = non-EU

3.6 Internal Transfers and Exclusions

Pattern	Treatment	Notes
UMBUCHUNG, EIGENUEBERWEISUNG, INTERNAL TRANSFER	EXCLUDE	Internal movement between own accounts
DARLEHEN, KREDIT, TILGUNG	EXCLUDE	Loan principal -- not income or expense
ZINSEN DARLEHEN (paid)	Betriebsausgaben (Schuldzinsen)	Interest on business loan: deductible
BARGELDABHEBUNG, GELDAUTOMAT, ATM	T2 -- ask	Default exclude; ask what cash was spent on

3.7 German Banks -- Statement Format Reference

Bank	Format	Key Fields
Sparkasse, Volksbank	CSV, PDF	Buchungstag, Wertstellung, Verwendungszweck, Betrag
Deutsche Bank, Commerzbank	CSV, MT940	Valuta, Buchungstext, Auftraggeber/Empfanger, Betrag
N26, Revolut	CSV	Date, Counterparty, Amount, Reference
ING DiBa	CSV	Buchung, Auftraggeber/Empfanger, Verwendungszweck, Betrag

Section 4 -- Worked Examples

Example 1 -- Freiberufler, Standard Income

Input line: 15.03.2025 ; KUNDENUEBERWEISUNG STUDIO KREBS GMBH ; CREDIT ; Honorar Maerz 2025 ; +4,500.00 ; EUR

Reasoning: Client payment for professional services. Freiberufler income. If USt-registered (Regelbesteuerung), EUR 4,500 may include 19% USt. Check invoice: if EUR 4,500 gross, net = EUR 3,781.51 (Betriebseinnahme) + EUR 718.49 (USt liability). If Kleinunternehmer (s19 UStG), full EUR 4,500 is income.

Classification: Betriebseinnahmen on Anlage EUR / Anlage S.

Example 2 -- Bewirtung (Business Entertainment)

Input line: 22.04.2025 ; RESTAURANT GOLDENER HIRSCH ; DEBIT ; Bewirtung Kundentreffen ; -180.00 ; EUR

Reasoning: Bewirtungskosten are 70% deductible for ESt (s4 Abs.5 Nr.2 EStG). The full Vorsteuer (19% USt) is recoverable for USt purposes if a proper Bewirtungsbeleg exists. Without Bewirtungsbeleg: 0% deductible.

Classification: ESt: EUR 180.00 x 70% = EUR 126.00 deductible. EUR 54.00 not deductible. USt: EUR 28.74 Vorsteuer 100% recoverable with proper Beleg.

Example 3 -- Home Office (Arbeitszimmer)

Input line: 01.01.2025 ; VERMIETER MUELLER ; DEBIT ; Miete inkl. Nebenkosten ; -850.00 ; EUR

Reasoning: Monthly rent. Home office deduction depends on arrangement:

Tagespauschale: EUR 6/day, max 210 days = EUR 1,260/year. Available regardless of room arrangement.
Dedicated room (Mittelpunkt): If separate room, exclusively for work, AND centre of all professional activity, full actual costs deductible (proportional by floor area).
No dedicated room: Tagespauschale only.

Classification: T2 -- ask client about room arrangement. Default: Tagespauschale EUR 1,260/year.

Example 4 -- Vehicle Fuel

Input line: 10.05.2025 ; ARAL TANKSTELLE BERLIN ; DEBIT ; Diesel ; -85.00 ; EUR

Reasoning: Fuel purchase. Vehicle expenses require either Fahrtenbuch (logbook), 1%-Regelung, or Kilometerpauschale. Without confirmed method: 0% deduction.

Classification: T2 -- ask which method. Default: 0% deduction until confirmed.

Example 5 -- Software Subscription Under EUR 800

Input line: 03.06.2025 ; ADOBE SYSTEMS ; DEBIT ; Creative Cloud Jahresabo ; -713.88 ; EUR

Reasoning: Annual subscription under EUR 800 net. Subscription (not perpetual licence) = Betriebsausgabe in full in year paid, regardless of EUR 800 threshold.

Classification: Betriebsausgaben (IT/Software). Fully deductible.

Example 6 -- Health Insurance (NOT Business Expense)

Input line: 15.01.2025 ; TECHNIKER KRANKENKASSE ; DEBIT ; Krankenversicherung Jan 2025 ; -450.00 ; EUR

Reasoning: Health insurance is a Sonderausgabe on the main return, NOT a Betriebsausgabe on Anlage EUR.

Classification: EXCLUDE from Anlage EUR. Record as Sonderausgabe (Anlage Vorsorgeaufwand).

Section 5 -- Tier 1 Rules (When Data Is Clear)

5.1 Betriebseinnahmen (Business Revenue)

Legislation: EStG s4 Abs.1, s15 (Gewerbebetrieb), s18 (freiberufliche Tatigkeit)

All business income is Betriebseinnahmen. For USt-registered, report net of USt on Anlage EUR. For Kleinunternehmer (s19 UStG), report gross.

5.2 Betriebsausgaben (Business Expenses)

Legislation: EStG s4 Abs.4

Expenses are deductible if caused by the business (betrieblich veranlasst). Germany allows apportionment of mixed-use expenses where business and private portions can be objectively separated.

5.3 Geringwertige Wirtschaftsguter (GWG / Low-Value Assets)

Net Cost (excl. USt)	Treatment
Up to EUR 250	Immediate full deduction, no asset register
EUR 250.01 -- EUR 800	Immediate full deduction OR Sammelposten. Asset register required.
EUR 800.01 -- EUR 1,000	Sammelposten option: pool, depreciate 5 years (20%/year)
Over EUR 1,000	Normal AfA over useful life per AfA-Tabelle

5.4 AfA (Depreciation)

Legislation: EStG s7

Asset Type	Useful Life	Annual Rate
Computer hardware (incl. peripherals)	1 year (since 2021 BMF ruling)	100%
Computer software	1 year	100%
Office furniture	13 years	~7.7%
Motor vehicles	6 years	~16.7%
Office equipment (printers, copiers)	7 years	~14.3%
Mobile phones	5 years	20%
Buildings (commercial)	33 or 50 years	3% or 2%

Computer hardware and software: Since BMF ruling of 26.02.2021, digital assets can be written off in full in the year of acquisition regardless of cost.

5.5 Non-Deductible Expenses

Expense	Reason
Einkommensteuer, SolZ, KiSt	Tax on income -- s12 Nr.3 EStG
Private living expenses	s12 Nr.1 EStG
Fines and penalties (Geldstrafen, Busgelder)	s4 Abs.5 Nr.8 EStG
Gifts to business partners over EUR 50/person/year	s4 Abs.5 Nr.1 EStG
30% of Bewirtungskosten	s4 Abs.5 Nr.2 EStG
Personal insurance (life, household)	Sonderausgabe, not Betriebsausgabe

5.6 Vorauszahlungen (Quarterly Prepayments)

Legislation: EStG s37

Instalment	Deadline
Q1	10 March
Q2	10 June
Q3	10 September
Q4	10 December

Based on most recent Steuerbescheid. First year: Finanzamt estimates.

5.7 Filing Deadlines

Scenario	Deadline
Self-filed (without Steuerberater)	31 July of following year
Filed by Steuerberater	End of February, year after next
USt Voranmeldungen	10th of following month/quarter

5.8 Penalties

Offence	Penalty
Late filing (Verspatungszuschlag)	0.25% of assessed tax per month, min EUR 25/month
Late payment (Saumiszuschlag)	1% per commenced month on unpaid tax
Interest on late assessment	0.15% per month (from 15 months after year end)
Incorrect return	Up to EUR 25,000; criminal penalties for fraud

5.9 Interaction with Umsatzsteuer (USt)

Scenario	Income Tax Treatment
USt collected (Regelbesteuerung)	NOT income -- report net on Anlage EUR
Vorsteuer recovered	NOT an expense -- report net on Anlage EUR
Vorsteuer blocked (e.g., 30% Bewirtung for ESt, 100% for USt)	ESt and USt have DIFFERENT rules
Kleinunternehmer (s19 UStG)	No USt charged; all costs gross including USt paid
Reverse-charge on imports	Net effect zero for USt; net cost deductible for ESt

Section 6 -- Tier 2 Catalogue (Reviewer Judgement Required)

6.1 Home Office (Hausliches Arbeitszimmer)

Scenario	Deduction	Condition
No dedicated room	Tagespauschale: EUR 6/day, max EUR 1,260/year	Available to all who work from home
Dedicated room, not Mittelpunkt	Tagespauschale only (since 2023 reform)	Room exists but works elsewhere too
Dedicated room, Mittelpunkt der Tatigkeit	Full actual costs (pro-rata by floor area)	Centre of ALL professional activity

Flag for reviewer: Confirm room arrangement, floor area ratio, Mittelpunkt status.

6.2 Vehicle Business Use

Method	How It Works
Fahrtenbuch	Actual costs x (business km / total km). Must be contemporaneous, complete, unchangeable.
1%-Regelung	Private use = 1% x Bruttolistenpreis/month added as income. All costs deductible.
Kilometerpauschale	EUR 0.30/km for business trips. No actual cost records needed. No Vorsteuer.

Flag for reviewer: Confirm method and business-use percentage.

6.3 Phone / Internet Mixed Use

Default: 0% deduction. Options:

Flat rate: 20% of phone/internet costs, capped EUR 20/month, without records
Actual records: Higher % with 3-month representative usage log

6.4 Geschenke (Business Gifts)

Deductible up to EUR 50 net per person per year (since 2024)
Must record individually with recipient name
Over EUR 50: entire amount non-deductible (not just excess)

Section 7 -- Excel Working Paper Template

EINNAHMEN-UBERSCHUSS-RECHNUNG (EUR) -- Working Paper
Tax Year: 2025
Client: ___________________________
Status: Freiberufler / Gewerbetreibende

A. BETRIEBSEINNAHMEN
  A1. Umsatzerlose (net of USt if registered)    ___________
  A2. Sonstige Betriebseinnahmen                  ___________
  A3. Total Betriebseinnahmen (A1 + A2)           ___________

B. BETRIEBSAUSGABEN
  B1. Wareneinsatz / Fremdleistungen              ___________
  B2. Raumkosten (Miete, Nebenkosten)             ___________
  B3. Arbeitszimmer (Pauschale or actual)         ___________
  B4. Versicherungen (business only)              ___________
  B5. Fahrzeugkosten                              ___________
  B6. Reisekosten                                 ___________
  B7. Bewirtungskosten (70% of gross)             ___________
  B8. Werbekosten                                 ___________
  B9. Buro- und Verwaltungskosten                 ___________
  B10. Telekommunikation (business %)             ___________
  B11. Fortbildungskosten                         ___________
  B12. Beratungskosten (StB, RA)                  ___________
  B13. Abschreibungen (AfA)                       ___________
  B14. Nebenkosten Geldverkehr (bank fees)        ___________
  B15. Sonstige Betriebsausgaben                  ___________
  B16. Total Betriebsausgaben (B1-B15)            ___________

C. GEWINN / VERLUST (A3 - B16)                    ___________

REVIEWER FLAGS:
  [ ] Freiberufler or Gewerbetreibende confirmed?
  [ ] Filing status confirmed (single/married)?
  [ ] Church membership confirmed?
  [ ] Home office method confirmed?
  [ ] Vehicle method confirmed?
  [ ] Bewirtungsbelege available?
  [ ] All T2 items flagged for review?

Section 8 -- Bank Statement Reading Guide

German Bank Statement Formats

Bank	Format	Key Fields
Sparkasse, Volksbank	CSV, PDF	Buchungstag, Wertstellung, Verwendungszweck, Betrag
Deutsche Bank, Commerzbank	CSV, MT940	Valuta, Buchungstext, Auftraggeber/Empfanger, Betrag
N26, Revolut	CSV	Date, Counterparty, Amount, Reference
ING DiBa	CSV	Buchung, Auftraggeber/Empfanger, Verwendungszweck, Betrag

Key German Banking Terms

German Term	English	Classification Hint
Gutschrift	Credit (incoming)	Potential income
Lastschrift	Direct debit (outgoing)	Potential expense
Uberweisung	Bank transfer	Check direction
Dauerauftrag	Standing order	Regular expense
Kartenzahlung	Card payment	Expense
Bargeldabhebung	Cash withdrawal	Ask what it was for
Abschluss	Bank charges	Nebenkosten Geldverkehr

Section 9 -- Onboarding Fallback

If the client provides a bank statement but cannot answer onboarding questions immediately:

Classify all transactions using the pattern library (Section 3)
Mark all T2 items as "PENDING -- reviewer must confirm"
Apply conservative defaults (Section 1)
Generate the working paper with clear flags
Present the following questions to the client:

ONBOARDING QUESTIONS -- GERMANY INCOME TAX
1. Are you Freiberufler or Gewerbetreibende?
2. Filing status: Einzelveranlagung (single) or Zusammenveranlagung (joint)?
3. Church member (evangelisch, katholisch, other, or none)?
4. Home office: dedicated room or shared space?
5. Vehicle: Fahrtenbuch, 1%-Regelung, or Kilometerpauschale?
6. Phone/internet: what percentage is business use?
7. Do you have a Steuerberater filing on your behalf?
8. Prior year Steuerbescheid available?

Section 10 -- Reference Material

Key Legislation References

Topic	Section
Business income (Gewerbebetrieb)	EStG s15
Freiberufliche Tatigkeit	EStG s18
Business expenses	EStG s4 Abs.4
Non-deductible expenses	EStG s4 Abs.5, s12
AfA depreciation	EStG s7
GWG low-value assets	EStG s6 Abs.2
Bewirtungskosten	EStG s4 Abs.5 Nr.2
Geschenke (gifts)	EStG s4 Abs.5 Nr.1
Arbeitszimmer	EStG s4 Abs.5 Nr.6b / Nr.6c (Tagespauschale)
Vorauszahlungen	EStG s37
Solidaritatszuschlag	SolZG
Kirchensteuer	KiStG (Lander)
Gewerbesteuer credit	EStG s35

Test Suite

Test 1 -- Freiberufler, mid-range income. Input: Single, no church, Freiberufler, Betriebseinnahmen EUR 60,000, Betriebsausgaben EUR 15,000. Gewinn EUR 45,000. Expected: Apply formula-based progressive rate to EUR 45,000. SolZ likely below exemption threshold. No GewSt.

Test 2 -- Bewirtung correctly limited. Input: EUR 500 Bewirtungskosten claimed. Expected: EUR 350 deductible (70%). EUR 150 not deductible.

Test 3 -- Computer hardware full write-off. Input: Laptop EUR 2,500 purchased. Expected: Full deduction in year of acquisition (BMF 2021 ruling). 100% AfA.

Test 4 -- Health insurance excluded. Input: TK Krankenversicherung EUR 5,400. Expected: EXCLUDE from Anlage EUR. Sonderausgabe on Anlage Vorsorgeaufwand.

Test 5 -- Geschenke over limit. Input: EUR 80 gift to business partner. Expected: Over EUR 50 limit. Entire EUR 80 non-deductible.

Test 6 -- Kleinunternehmer gross reporting. Input: Kleinunternehmer, invoice EUR 1,000 (no USt charged). Expected: Full EUR 1,000 is Betriebseinnahme. All purchase costs at gross.

PROHIBITIONS

NEVER compute Einkommensteuer using simple bracket multiplication -- use formula-based progressive rate
NEVER include Krankenversicherung or Rentenversicherung as Betriebsausgaben -- they are Sonderausgaben
NEVER allow more than 70% of Bewirtungskosten as Betriebsausgabe
NEVER allow Geschenke over EUR 50 per person per year
NEVER allow Einkommensteuer, SolZ, or KiSt as deductible expenses
NEVER allow fines or penalties as deductible
NEVER apply Gewerbesteuer to a Freiberufler
NEVER deduct vehicle expenses without confirming the method
NEVER deduct home office beyond EUR 1,260 Tagespauschale without confirming Mittelpunkt
NEVER present tax calculations as definitive -- direct client to Steuerberater

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a Steuerberater or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at openaccountants.com. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.

Source: OpenAccountants — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: source-cited draft. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (openaccountants-mcp).

De Income Tax

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