Start-up costs

29. REPORTING REGISTRATION AND CANCELLATION EXPENSES ON YOUR TAX RETURN

Expenses often arise before a business is registered or deregistered. They can still be claimed for tax purposes.

The date a business is established is the start of operations. A founder must have this date recorded in the business registration with the city or municipal administration. If a freelance activity is registered only with the tax office, that date must be provided here. Costs, however, often arise beforehand. They are always deductible if they relate to future work, specifically: travel, train, and car expenses for visits to government offices, funding agencies, the Chamber of Commerce and Industry (IHK), notaries, viewings of offices and other properties, as well as visits to banks, consulting fees, commissions, fees, furnishings, business space rent paid in advance, bank charges, postage, office supplies, and telephone expenses. A valid invoice must be submitted. The costs are also deductible if they were incurred in the year prior to the business opening.