The Tax Mystery in Germany ????

Few months ago after founding Obrang our Creative Design Agency (www.obrang.com), my new entrepreneurial life started in Germany. There was always one puzzle which I was trying to demystify for a couple of months, and that was nothing but the lovely Taxes in Germany. So let me take you through my journey and different experiences. ??

Tax as a Roadblock

I began discussing it with people I knew mostly who were themselves employees. The feedback I received was both interesting and, to be honest, discouraging. I was warned that mistakes or failure to comply fully with tax regulations could lead to court battles and severe consequences. Some advised me not to start a for-profit company if I wanted to avoid problems altogether, while others shared their own tales of woe, like someone partnering with another person who handled all the paperwork and sometimes online commands in exchange for 50% of their earnings due to the fear of tax headaches. ??

Tax as a Constant Confusion

I also had conversations with several business owners who all echoed the same sentiment: "Tax is complicated in Germany." While they relied on tax consultants to navigate the complexities, many of them lacked a clear understanding of how taxes were calculated, the different tax types, and other specifics. Although I hoped to grasp the basics, they often suggested I consult a tax consultant, which was logical, but I had expected more insights from those experienced in the field. ??

Tax Consultants as Financial Wizards

After some time, I came to the realization that tax consultants held the key to unraveling this mystery. Thus, my quest began to find these financial wizards. However, I soon discovered that securing a reliable tax consultant and signing a contract proved to be one of the primary challenges at the start of a business venture in Germany – a challenge that might not be given much thought in other countries. Much like the wizards in stories performing the impossible, tax consultants play a similar role, as I started reaching them, they were often overbooked or uninterested in taking on new clients. Additionally, the uncertainty of their hourly fee structure added further confusion to budgeting and planning, especially for small and new companies like mine. Even those few who are open to granting you a first appointment to discuss your needs and their offerings would often schedule it no earlier than two or three weeks from the date you reach them. ??

Tax as a Treasure to be Discovered in a New Way

Despite the initial hurdles, my limited experience with taxes in Germany and the evident high demand in the industry convinced me that this is an opportunity worth exploring. Especially with the new decree focusing on ESG reporting in Germany, the tax industry seemed to be gaining more significance and potential. Consequently, I seriously contemplated getting involved in this industry in the future, hoping to make people's lives easier and reap the rewards. ????

Finally, I found my tax consultant about a month ago. Not only are they very friendly, but I also can't believe how technology has simplified things. During our first consultation appointment, they asked me to register and log in to an online platform that connects everything seamlessly – my tax consultant, relevant tax authority, and my bank account, among other things. This real-time synchronization was an entirely new experience for me, given my six years of conducting business in Afghanistan. The best part came when it was time to pay my first Quarterly Tax – with just ONE CLICK! The software had already done all the calculations and presented everything for my approval. So far everything is straight forward.

As I continue to gain more experience, I'll be sure to share my insights. The tax mystery might have been daunting, but with the right tools and mindset, it's a challenge worth embracing. ????