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).

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.

Further German company taxes

German trade tax
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German commercial tax
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German income tax for partnerships
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German income tax for corporates
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All German taxes

German customs duties and import regulations
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German tax return
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German taxation of property
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German VAT
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German company taxation
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Let us be a part of your success story

Andreas Wilke


+49 6181 250 330


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Why us?
  • Strong experience in supporting foreign companies to develop their business in Germany
  • Our clients success is our success. Our objective is to grow along our clients
  • We are family owned. Our long- term perspective allows for good strategy and decision-making

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To learn more about how we can add value to your business in Germany, please do not hesitate to contact us today!

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Or call us at +49 (0) 6181 25 03 30

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