Trade Tax

Find out more about the Trade Tax (Gewerbesteuer) in Germany...

Trade and business income from individuals and corporate income is subject to an additional tax - the Trade Tax. This is justified by the fact that trade and business income normally exploits the public infrastructure more than, for example, income from other sources like capital gains.

Taxable Income

Income from trade and business under personal income tax - and any income of corporations - is separately taxed with a trade tax (Gewerbesteuer). In contrast to corporations, individuals and business partnerships are granted a tax exempt amount and the trade tax can be credited to the personal income tax. There is a separate computation process for Trade Tax.

Tax Rates

The rates depend on the region in which the business is run. Economically attractive regions charge higher rates than depressed areas.

Disclaimer: Tax law is a complex matter. Any information provided on this website is intended as a summary and not to be more than a general overview. A specific client-advisor relationship does not arise from any information shown herein. Neither the author nor the publisher are responsible for any liability, especially for actions taken on the basis of information contained in this summary, nor for any errors, omissions etc. This text is not intended to render legal, accounting or tax advice.

Due to the complexity of tax law in any country and especially the interaction of multiple tax systems it is always recommended and encouraged to seek professional advice concerning specific matters before making any decision.

Stein and Partners LLP: Business and Tax Law with a Cross-Border Focus

Information provided by Stein & Partners LLP - Legal and Tax Advisory Ballenstedter Strasse 16a, 10709 Berlin, Germany Tel.: +49 (0)30 - 8900 6062 Fax.: +49 (0)30 - 8900 6063 www.stein-partners.com email Copyright © 2014 Stein & Partners LLP. All Rights Reserved.