Filing taxes for a General Partnership GbR in Germany is a key compliance requirement for small businesses, freelancers, and co-founders operating under this popular business structure. While the GbR (Gesellschaft bürgerlichen Rechts) is not a taxable entity itself, it is still obligated to report its income, expenses, and profit distribution to the German tax authorities. This guide provides a complete overview of how to file a General Partnership GbR Tax Return in Germany, the documents required, the forms to be used, common mistakes to avoid, and important compliance timelines.
Whether you are a local entrepreneur or a foreign partner in a German business, understanding the General Partnership GbR Tax Return process is essential for staying compliant and avoiding penalties.
What is a General Partnership (GbR) in Germany?
A GbR (Gesellschaft bürgerlichen Rechts) is the simplest form of partnership under German civil law. It is formed by two or more individuals or entities joining together for a common business purpose. GbRs are commonly used by:
- Freelancers and consultants teaming up
- Founders starting a small business
- Service providers and professionals in early-stage ventures
The GbR is not a separate legal person but can hold property, enter into contracts, and be held liable for obligations as a business entity.
Key Features of a GbR:
- Easy to form with no minimum capital
- Partners are jointly and severally liable
- Ideal for non-commercial, small-scale operations
- Must register with tax authorities but not the commercial register (Handelsregister)
Is a GbR Taxed as a Company?
No. A General Partnership GbR is a tax-transparent entity. This means:
- The GbR does not pay income tax directly
- The partnership must file a General Partnership GbR Tax Return to report total earnings and allocate profits to partners
- Each partner includes their share of the income in their personal income tax return
This structure ensures that profits are taxed only once at the partner level. However, the GbR has an obligation to report and document its financial performance and structure every year.
Tax Filing Obligations for a General Partnership GbR in Germany
1. Partnership Tax Return (Feststellungserklärung)
This is the central General Partnership GbR Tax Return document that must be submitted to the tax office. It includes:
- Gross revenue and total expenses
- Net profit or loss
- Allocation of profit to each partner (based on the GbR agreement or equal split)
This return must be filed electronically via ELSTER, Germany’s official tax filing platform.
2. Profit and Loss Statement (Einnahmen-Überschuss-Rechnung or EÜR)
Smaller GbRs with straightforward operations may use cash-based accounting and submit an EÜR. It summarizes:
- All incoming payments (income)
- All outgoing payments (expenses)
- Resulting net income for the year
This report forms the basis of the General Partnership GbR Tax Return.
3. Trade Tax Return (Gewerbesteuererklärung)
A GbR engaged in commercial business activities must file a trade tax return:
- Trade tax (Gewerbesteuer) applies if income exceeds the €24,500 exemption
- Individual partners may receive a trade tax credit on their income tax
Note: Not all GbRs are subject to trade tax professional partnerships or freelance GbRs may be exempt.
Step-by-Step: How to File a General Partnership GbR Tax Return in Germany
Step 1 – Register Your GbR With the Tax Office
After forming your GbR, you must submit the Questionnaire for Tax Registration (Fragebogen zur steuerlichen Erfassung) to the Finanzamt. This process:
- Registers the GbR for tax purposes
- Assigns a Steuernummer (tax number)
- Determines whether the GbR is subject to VAT, trade tax, etc.
Step 2 – Maintain Proper Accounting Records
Accurate bookkeeping is critical. Keep digital and physical records of:
- All invoices issued and received
- Receipts for expenses
- Payroll (if applicable)
- Bank transactions
Small GbRs can use cash-based accounting, but those above turnover thresholds may need double-entry bookkeeping.
Step 3 – Prepare the Annual Profit and Loss Statement (EÜR)
The EÜR is usually sufficient unless your GbR exceeds €600,000 in revenue or €60,000 in annual profit. In your EÜR:
- List all income (client payments, sales, etc.)
- Deduct business-related expenses (rent, software, marketing, etc.)
- Calculate the net profit for the year
Step 4 – Allocate Profit Among Partners
As part of the General Partnership GbR Tax Return, you must specify how profits are split between partners. If no specific terms are mentioned in the partnership agreement, the split is usually equal.
Include:
- Partner names and tax IDs
- Percentage of profit share
- Proof of capital contributions (if relevant)
Step 5 – File the Feststellungserklärung via ELSTER
- Register the GbR on www.elster.de
- Complete the Feststellungserklärung form accurately
- Attach the EÜR and other supporting documents
- Submit it electronically to the Finanzamt before the deadline (usually July 31 of the following year)
Step 6 – Partners File Their Individual Income Tax Returns
Each partner must declare their allocated profit share in their own Einkommensteuererklärung (income tax return).
- Include the income allocated from the GbR
- Apply for trade tax credits (if applicable)
- Submit by the same July 31 deadline (or later with a tax advisor)
Documents Required for Filing General Partnership GbR Tax Return
To successfully file the General Partnership GbR Tax Return, gather the following:
- ELSTER registration and certificate
- Steuernummer and partner tax numbers
- Partnership agreement
- Profit and loss report (EÜR)
- Receipts, invoices, and expense records
- Any trade tax-related documentation
- List of business assets (if applicable)
Deadlines and Extensions
- Standard Filing Deadline: July 31 of the following year
- With Tax Advisor: Extended to end of February of the year after
- Late Filing Penalties: May include fines, surcharges, and estimated assessments
Timely filing of your General Partnership GbR Tax Return helps you avoid unnecessary complications with the Finanzamt.
Trade Tax for GbR Firms
If your GbR engages in commercial activity, you may be subject to Gewerbesteuer (trade tax):
- First €24,500 of profit is tax-free
- Tax rate depends on your municipality (approx. 7–17%)
- Not applicable to freelance GbRs (e.g., journalists, consultants)
Trade tax obligations are reported separately using the Gewerbesteuererklärung.
Common Challenges When Filing a General Partnership GbR Tax Return
- Language barriers on ELSTER (interface is mostly in German)
- Errors in profit allocation, leading to mismatched partner filings
- Inconsistent bookkeeping making reconciliation difficult
- Trade tax confusion, especially for borderline cases (freelance vs commercial)
- Unclear tax residency status of partners in international setups
- Delays in ELSTER registration, causing missed deadlines
Tips for a Smooth Tax Filing Experience
- Begin preparations early to avoid last-minute rushes
- Store invoices and documents digitally using accounting tools like Lexoffice or SevDesk
- Hire a tax advisor (Steuerberater) if your GbR has multiple partners, foreign founders, or high revenues
- Review previous year’s Feststellungsbescheid to avoid inconsistencies
How Ease to Compliance Can Help
Filing your General Partnership GbR Tax Return correctly is critical for compliance, especially when partners live in different regions or countries. At Ease to Compliance, we offer:
- End-to-end assistance with preparing and filing the Feststellungserklärung
- Bookkeeping and EÜR preparation tailored to your business type
- Guidance on trade tax obligations and credits
- Partner income allocation and individual filing coordination
- Support for international founders and cross-border partnerships
Let us simplify your tax process, minimize risk, and keep your GbR fully compliant with German tax laws.
Contact Ease to Compliance today to get expert help filing your General Partnership GbR Tax Return in Germany with confidence.
FAQs On General Partnership GbR Tax Return in Germany
Question 1. Does a GbR need to register for VAT (Umsatzsteuer) in Germany?
Answer: Yes, if the GbR’s annual turnover exceeds €22,000 (as of 2025), it must register for VAT and charge VAT on its invoices. Below this threshold, it can opt for the small business regulation (Kleinunternehmerregelung) and remain VAT-exempt.
Question 2. Can a GbR hire employees in Germany?
Answer: Yes, a GbR can employ staff. It must register as an employer with the tax office and health insurance providers and handle payroll taxes and social contributions accordingly.
Question 3. How is a GbR closed or dissolved for tax purposes?
Answer: To dissolve a GbR, partners must formally agree to end the partnership, settle liabilities, and notify the tax office. A final tax return must be filed to report the business closure and final profit allocation.
