Myths & facts · 9.3
Myth: "Writing it off means I get the money back."
Short answer
False. Writing something off reduces profit; you only save the tax on it.
Key points
Business expenses reduce the profit on which your GmbH pays corporate income tax (Körperschaftsteuer) and trade tax (Gewerbesteuer). With a €1,000 expense and an approximate 30% tax rate, you save about €300 in taxes—the remaining €700 is paid by the company itself. Real "money back" only applies to the VAT (Umsatzsteuer) on the invoice as input tax (Vorsteuer), provided your company is not a small business (Kleinunternehmer). More expensive purchases are often written off (depreciated) over several years.
Rule of thumb: Writing something off makes it cheaper, not free.
Legal basis
Continue
- In detail: What is an operating expense?
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