Who Is Obliged To Keep Records?

Tax advisor Ute Marseille from Bochum informed for smaller companies, the obligation to keep records means a substantial additional effort that costs them time and money. To call out here any undue burdens, excludes the German legislator especially small entrepreneurs, professionals from the requirement to keep proper records. The Bochum-based accountant Ute Marseille informed who the German laws require accounting. Whether a company must present a double-entry bookkeeping, arises from the 238ff sections. HGB as well as 140f. AO. Traders and merchants are affected.

However the term merchants is”from the perspective of the commercial code something more broadly, as in common parlance. Basically all self-employed persons, who operate a commercial enterprise, are assimilated to the merchants. The obligation to keep records in accordance with German commercial code does not apply to so-called small and microentrepreneurs, if their companies after nature and scope not furnished in commercial way Require business”( 1 para 2 HGB). In case of doubt the local Chamber of industry and Commerce informs entrepreneurs about, if this is the case you. 241a HGB, which entered into force in the year of 2009 in the wake of the Bilanzmodernisierungsgesetztes, excludes merchants from the obligation to keep records, which have achieved no more than 500,000 euros turnover and 50,000 euros profit during two immediately consecutive fiscal years. Newly founded company benefit from this scheme already at the first closing date.

The obligation to keep records not determined by commercial rules, she can arise also from the tax law. section 141 of the tax code requires traders, farmers and foresters to cause proper books if they exceed annual sales of 500,000 euros or gains of 50,000 euros. Forest and farmers are also subject to accounting at an economic value of their land by over 25,000 euros. Pursuant to section 140 of the tax code is the tax obligation to keep records independently comes from other statutory provisions, even considering, if an entrepreneur does not count according to commercial standards to the merchants. Freelancers and the self-employed, that neither after trading still tax rules books, do their tax returns by a revenue surplus account starting Emit. However, even they must with documents to prove their income and expenditure and keep them. The Bochum-based accountant Ute Marseille like enlighten their clients on all issues related to the accounting. Press contact accountant Ute Marseille Josef-Baumann-str. 21 44805 Bochum phone: 0234-96431 31 fax: 0234-96431 91 email: Homepage: