Business tax fixing

The business tax is a real tax. It is also known as property tax. Your business is at the heart of taxation. The business tax thus aims at the efficiency of your business. In general, it is irrelevant who owns the business tax. However, this is the debtor of the business tax Profits of sole proprietors and partnerships are liable to business tax, insofar as they generate income from the business. The activity of a corporation is always regarded as a commercial enterprise. It is therefore regularly subject to business tax. Your business is subject to business tax in the municipality where a permanent establishment is maintained. The municipality collects the business tax on the basis of the business tax measure. The business tax measure amount is determined by the responsible business tax office. This is the tax office in whose district the management of your company is located. This tax office is also responsible for deciding on the material and personal business tax liability. In order to determine the business tax measure amount, a business tax return must be submitted to the works tax office. This tax office determines the business tax measure amount by means of a business tax measurement notice. This notice will be notified to you as a taxable person. In addition, the content of that decision is communicated to the eligible municipality. The latter shall fix the business tax and the advance payments of business tax. The business tax is calculated by multiplying the business tax measure by the rate. The municipality fixes the rate of income tax by statute.

For each independent undertaking, a business tax return shall be submitted electronically by the taxable person in accordance with the official record. Electronic transmission can only be waived in exceptional cases, the so-called hardship cases.


All required forms are available online; either via the form centre of the Federal Ministry of Finance, or in the ELSTER online portal. https://www.formulare-bfinv.de https://www.elster.de/eportal/start Online procedure: The ELSTER Online Portal (EOP) is made available to citizens free of charge as part of the transnational cooperation in tax administration (KONSENS Law). In the EOP it is possible to file the business tax return online.

Preconditions
The taxable person is obliged to submit or submit the business tax return. The transmission or filing of the business tax return is necessary and cannot be dispensed with.
Business Tax Act (GewStG) Tax Code (AO) Statutes of the municipality

Information on filling in the business tax return can be found in the instructions for the business tax return. This is about the ELSTER online portal.

In order to determine the business tax measure amount, a business tax return must be submitted to the works tax office. The tax office determines the business tax measure amount by means of a business tax measurement notice. This decision shall be notified to the taxable person. In addition, the content of that decision is communicated to the eligible municipality. The latter shall fix the business tax and the advance payments of business tax.