Field help:
Profits are determined according to
Select here how the profit calculation for your business is carried out:
- Net income method (sect. 4 para. 3 of the Income Tax Act (EStG)): Profit is calculated by comparing income and expenses. This method is particularly suitable for smaller companies.
- Balance sheet (sect. 4 para. 1 or 5 of the Income Tax Act (EStG)): With this more complex method, an inventory must be carried out and a Balance Sheet and Profit and Loss Calculation prepared at the end of the year.
For each self-employed occupation, a balance sheet or a net income method (Einnahmeüberschussrechnung = EÜR) must be submitted electronically.
Exception: Employees and senior citizens who are not required to file an electronic tax return and who receive expense allowances for voluntary work up to the allowance for voluntary work of 840 Euro or the trainer's allowance of 3.000 Euro per year may continue to use paper forms, which is often accepted in practice.
