Trade tax determination

The trade tax is a real tax. The focus of taxation is your business. First, a trade tax measurement amount must be determined by the company tax office. This tax assessment amount is the basis for the determination of your trade tax for the municipality entitled to levy.

The trade tax is a real tax. It is also known as object tax. 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 business. However, this 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 operation. The activity of a corporation is always considered a commercial enterprise. It is therefore regularly subject to trade tax.

Your business is subject to trade 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 company 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 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 assessment notice. This decision will be notified to you as a taxable person. In addition, the content of this decision is 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 levy rate. The levy rate for trade tax is determined by the municipality by statute.

For each independent company, a trade tax return must be submitted electronically by the taxpayer according to an officially prescribed data 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 transnational cooperation in the tax administration (KONSENS Act), citizens are provided with the ELSTER online portal (EOP) 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 trade tax return. The transmission or submission of the trade tax return is necessary and cannot be dispensed with.

Trade Tax Act (GewStG)

Tax Code (AO)

Statutes of the municipality

Instructions for completing the trade tax return can be provided in the instructions for the trade tax return. This is about the
ELSTER online portal can be viewed.

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 assessment notice. This decision shall be notified to the taxable person. In addition, the content of this decision is 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