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Trade Tax in Germany

The trade tax on income (Gewerbeertragsteuer) is based on the federal Trade Tax Act, but is levied by the local authorities (Gemeinde). A regional German Finanzamt is allowed to adjust their own trade tax rate depending on the value o its regional industry by using a multiplier (Hebesatz).

All German taxes

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German customs duties and import regulations

German tax return

German taxation of property

German VAT

German company taxation

Further German company taxes

German trade tax

German commercial tax

German income tax for partnerships

German income tax for corporates

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Stefan Grönke

Stefan Grönke

Tax Advisor

+49 6181 70115 30

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  • Strong experience in supporting foreign companies to develop their business in Germany
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Overview

The trade tax deduction on income usually ranges between 7% and 20% of the business income. Trade tax is also deductible as an expense against taxable income within the year of assessment.

As an individual community is allowed to commercialize its area, the trade tax of a major German city would be much higher than the one of a community outside this city.

For this reason, the trade tax should be taken in consideration when evaluating the right location to set up your business.

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