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Paying trade tax

  • Steuern und Abgaben 



    	    

		    
If you run a commercial business in Germany, you are subject to trade tax and may have to pay trade tax.

		    


                					    

						    

							    Competent Department
						    

						    
					    

                        
					    

						    

							    Basic information
						    

						    

							    

								    
Are you an individual and generate a trade income of more than EUR 24,500 with your domestic business? Then you are above the tax-free amount and must submit an electronic trade tax return to your tax office. In it, you declare how high your trade income was in the tax period - i.e. in the previous calendar year.  

In addition, based on your profit or loss - income minus expenses - you declare further additions or deductions. 

You also state the municipality in which you operate your business. The tax office uses this information to determine the trade tax assessment amount by multiplying the trade income by the tax assessment rate of 3.5 percent. This measurement amount is the basis for the amount of trade tax. 

The tax office calculates the trade tax from the trade tax base multiplied by the trade tax multiplier of the municipality. Each municipality determines its own assessment rate. 

You will then receive a notice of the trade tax to be paid by you or to be refunded to you. 

The trade tax assessment notice also determines the advance trade tax payments to be made by you in the future for the following tax period.

								    

									    Requirements
  • You operate a commercial enterprise and are not a freelancer or an agricultural or forestry entrepreneur.
  • You are not exempt from trade tax.
								    
What documents do I need?
    
    
  • Trade tax return (GewSt 1 A)        
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