A Complete Overview of Tax Adviser Fees for the Annual Financial Statements

The good news first: the fee calculation is based on your business figures. For start-ups and smaller companies, this means the fee for the annual financial statements is comparatively low — at least when tax advisers bill on the basis of the legally established fee schedule and do not request a different fee arrangement. Guhr Steuerberatung bills in accordance with this fee schedule — ideal for those starting a new business and for smaller firms!

Behind the rather cumbersome term Steuerberatervergütungsverordnung (StBVV — Tax Adviser Remuneration Ordinance) lies the legal cost framework for tax advisers. This ordinance provides for three billing models:

- Value-based fees (Wertgebühren)

- Time-based fees (Zeithonorar)

- Flat-rate fees (Pauschalhonorare)

The most common model is value-based fees, which are calculated on the basis of a transaction value (Gegenstandswert). Do you require a cash-basis income statement (EUER) as a business owner? In that case, your business income or business expenses serve as the transaction value. Do you need annual financial statements comprising a balance sheet and a profit and loss account? In that case, the transaction value is calculated as the mean of the adjusted balance sheet total and the annual operating turnover.

This transaction value is used to determine the base fee for your tax adviser's work. The relevant table is set out in an annex to the ordinance; the base fee rises with the level of the transaction value. At 50,000 euros, it currently stands at 248 euros (Table B — fees for closing work).

The final step in the cost calculation is as follows: for the various services, the fee schedule specifies a cost range expressed in tenths. Tax advisory firms multiply this factor by the base fee.

If you are a trader who is exempt from the statutory accounts obligation and a cash-basis income statement (EUER) suffices, the fee rate for this service is between 5/10 and 30/10. The costs at a transaction value of 50,000 euros range from 124 euros (248 euros × 0.5) to 744 euros (248 euros × 3).

Are you subject to the statutory accounts obligation and a cash-basis income statement (EUER) is not sufficient? In that case, you engage your tax adviser to prepare annual financial statements (Jahresabschluss). These comprise the balance sheet and the profit and loss account; further documents such as notes to the accounts (Anhang) may be added.

The fee factor for preparing the annual financial statements ranges from 10/10 to 40/10. As with the EUER, the cost calculation is based on the base fee from Table B (closing work). For preparing the notes to the accounts, your tax adviser may apply a factor of between 2/10 and 12/10. You may also choose between the following additional services:

- Derivation of the tax result from the commercial-law annual financial statements: 2/10 – 10/10

- Development of the tax balance sheet from the commercial balance sheet: 5/10 – 12/10

Most self-employed individuals and companies also have all their tax returns handled by their tax advisory firm. The following rates apply; these are based on the base fees from Table A (advisory services):

- Corporation tax return (Körperschaftssteuererklärung): 2/10 – 8/10

- Income tax return (Einkommenssteuererklärung): 1/10 – 6/10

- VAT return (Umsatzsteuererklärung): 1/10 – 8/10

- Trade tax return (Gewerbesteuererklärung): 1/10 – 6/10

Please note that the method of calculating the transaction value may differ for these types of tax. For example, the transaction value for the VAT return is 10% of the relevant net receipts, subject to a minimum of 8,000 euros.

Choosing the right tax adviser for annual financial statements: costs are transparent

The fee ordinance grants tax advisers a wide degree of discretion. This ensures that tax advisory firms can take into account their actual workload and further considerations such as liability risks. In practice, many advisory firms use a mid-range figure within the respective band.

Your Guhr Steuerberatung advisers will inform you transparently about the costs for your annual financial statements in advance!