Trade tax determination

The trade tax is a real tax. It is also known as object control. The focus of taxation is your business. The trade tax is thus aimed at the performance of your business. For the assessment of the trade tax, it is basically irrelevant who is the owner of the company. However, he is the debtor of the trade tax Profits of sole proprietorships and partnerships are subject to trade tax insofar as they generate income from the business enterprise. The activity of a corporation is always considered a commercial enterprise. It is therefore regularly subject to trade tax. Your business is subject to business tax in the municipality in which a permanent establishment is maintained. The municipality levies the trade tax on the basis of the trade tax measurement amount. The trade tax measurement 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 factual and personal trade tax liability. In order to determine the trade tax measurement amount, a trade tax return must be submitted to the company tax office. This tax office determines the trade tax measurement amount by means of a trade tax measurement notice. This notice will be notified to you as a taxable person. In addition, the content of this decision will be communicated to the municipality entitled to lift. This determines the trade tax and the trade tax advance payments. The trade tax is calculated by multiplying the trade tax measurement amount by the lifting rate. The lifting rate for the trade tax is determined by the municipality by statute.

For each self-employed company, a business tax return must be submitted electronically by the taxpayer in accordance with the officially prescribed record. Electronic transmission can only be dispensed with in exceptional cases, the so-called hardship cases.


All required forms are available online; either via the form center 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: As part of the cross-border cooperation in tax administration (KONSENS Law), the ELSTER Online Portal (EOP) is made available to citizens free of charge. In the EOP it is possible to submit the trade tax return online.

Preconditions
The taxpayer is obliged to submit or submit the business tax return. The transmission or submission of the business tax return is necessary and cannot be waived.
Trade Tax Act (GewStG) Tax Code (AO) Statutes of the municipality

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

In order to determine the trade tax measurement amount, a trade tax return must be submitted to the company tax office. The tax office determines the trade tax measurement amount by means of a trade tax measurement notice. This decision shall be notified to the taxpayer. In addition, the content of this decision will be communicated to the municipality entitled to lift. This determines the trade tax and the trade tax advance payments.

Responsible for the content
Ministry of Finance

Last update or date of publication
29.03.2019