Taxation

If you like working with numbers, think analytically and at the same time enjoy language and communication, you will find the perfect combination in the occupational fields of taxation. Prof. Dr Mark Knüppel, Prof. Dr Meike Utzerath and Prof. Dr Jürgen Vogt show how legal precision, economic understanding and a flair for consulting are trained during their studies - and how these strengths pave the way to the tax consultant exam and a secure, versatile career. Graduate Hilal Cetin will give an insight into her career and her work as a tax consultant.

What is the occupational field of taxation generally about?

Almost every person and every company that makes a profit in Germany must also pay taxes in Germany. Those who work in the occupational fields of taxation support clients - individuals and companies - in determining the correct amount of tax to be paid. This works best if you understand the client's professional situation in detail and plan ahead. In this way, clever solutions can be developed to make clients more economically successful and avoid tax risks.

What different areas of activity are there in the occupational field and what specific tasks are associated with them?

There are three different areas of tax consultancy: Advice on tax structuring, advice on all aspects of tax returns and support in enforcing tax positions.

In tax structuring advice, the task is to find the best tax solution for the client. For example, start-up advice involves deciding on the legal form. If a company wants to expand abroad, we examine the regulations of international tax law and advise on the choice of location, for example. If companies want to merge, tax consultants help them to avoid tax risks.

Advice on tax returns involves the preparation of bookkeeping, annual financial statements and tax returns. The tax authorities often have questions about tax returns and it is not uncommon for clients to argue with the tax authorities about the correct amount of tax. Tax advisors then support clients in enforcing their rights. This includes lodging appeals and representing them in court. This is usually reserved for fully qualified lawyers; the tax courts are an exception to the rule.

You can choose which areas you work in and it is also possible to change your field of work over the course of your career.

What is a typical career start in the field of tax?

Entry is often via a university degree, e.g. a bachelor's degree in business administration or business law, both usually with a specialisation in tax. There are also university degrees with a tax specialisation, e.g. a Bachelor of Taxation. More rarely, the path to becoming a tax consultant is chosen via the training occupation of "tax clerk".

How can you develop further in the occupational field?

If you want to work in the field of taxation in the long term, you will take the tax consultant exam after completing your university degree. If you pass the exam, you will be awarded the title of "tax consultant". This opens all doors: As a tax consultant, you can be employed in the tax department of a company or in a tax firm. Of course, you can also become self-employed with the title and become your own boss. Without the title of "tax consultant", you are relatively limited. There are only a few tax areas in which the title of "tax advisor" is not absolutely necessary. This may be the case, for example, in the area of transfer pricing and in the development of tax software.

What does the labour market in the tax sector look like at the moment?

The labour market looks very good. People starting out in their careers are desperately sought after.

What salary do you usually start with and what developments are possible?

The starting salary often depends on the size of the company. If you choose one of the Big Four (Deloitte, EY, KPMG, PwC) as your employer, the starting salary is around €45,000 per year. In smaller law firms, the salary tends to be somewhat lower.

However, you shouldn't just look at the starting salary. The salary prospects are more interesting. Passing the professional examination is naturally associated with a salary increase. If you also work your way up to a management position in the company - either independently or as an employee - your annual salary is more likely to be in the six-figure range.

What qualifications and skills are necessary to be successful in this occupational field?

Of course you need specialist tax knowledge. You should also enjoy dealing with new issues and situations. Every client is different and there are always tax issues that you have never dealt with before. You should therefore enjoy understanding new content and finding answers. You should also not be afraid of numbers. You don't have to be a maths genius, but sometimes you have to get stuck into the numbers.

It's also all about advising people. Even when it comes to the tax situation of a GmbH, you don't talk to "the GmbH", but to the Executive Director of the GmbH. You should therefore enjoy dealing with people. You have to realise that as a tax consultant you are a person of trust. It can happen that you are the first person to find out about the planned sale of the company or the divorce. This can require a certain amount of sensitivity.

What compulsory basic modules do we have at the faculties in the area of tax?

All of our degree programmes include a basic module "Corporate Taxes - Fundamentals and Basic Tax Types". Depending on the degree programme, you can or must take the module in English, in which case it is called "Business Taxation".

Which specialisations can I choose?

We offer students a wide range of different tax modules. These include: Taxation of Companies, Taxation of Investment and Financing, Taxation of Conversions, International Taxation (in German) or International Taxation (in English), DATEV Management Consulting and Real Estate Taxation.

Are there any modules from other areas that you would also recommend in order to be successful in the occupational fields?

The determination of taxable profit is generally based on annual financial statements under commercial law. Therefore, all modules from the field of accounting and auditing fit very well. In addition, you often work together with the Accounting Section and with auditors. Of course, you talk to each other very differently when you understand the "world of accounting". Group and international accounting is also important, especially for larger companies. There are also tax items in consolidated and IFRS degrees that need to be determined or reviewed.

As tax advice is often provided to partnerships or corporations, knowledge of company law is also helpful. Company law plays a particularly important role when it comes to the formation, merger or separation of companies.

Are there any current developments in the occupational field that have an influence on the occupational fields?

AI entered the field of tax consultancy and accounting years ago. A lot has already been automated, particularly in the preparation of bookkeeping and balance sheets. The use of AI in day-to-day work, e.g. for summarising notes or writing emails, is also already common practice at many companies.

The use of AI to solve tax problems is progressing somewhat more slowly. The problems of "Mr Mustermann", including his date of birth, marital status and amount of debt, cannot be entered into ChatGPT. Data protection dictates this. Internal AI systems must therefore be used. Due to the costs, this is currently more feasible for larger tax consulting firms. But I assume that this will also change in the near future. In the future, AI will take over the answering of simpler questions and even more routine activities. For tax advisors, the difficult and exciting new questions will remain.

In addition, the number of tax regulations is increasing rather than decreasing. Tax expertise is increasingly in demand, not only in Germany, but especially in an international context. Although there is a lot of talk about simplification, things are actually becoming more and more complex. The infamous beer mat that fits an entire tax return will probably never exist.