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Myths & facts · 9.5

Myth: “Revenue equals profit.”

Short answer

False. Profit is what remains after all costs.

Key points

In simple terms, profit is your income minus your expenses. With €100,000 in net revenue and €60,000 in costs, €40,000 in profit remains. Your GmbH pays corporate tax and trade tax on the profit. VAT, on the other hand, is tied to revenue and does not count toward your revenue itself.

Rule of thumb: Revenue shows what comes in. Profit shows what stays.

Legal basis

§ 8 KStG§ 4 EStG

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