Trade tax
If you run a commercial business in Germany, you are liable for trade tax. You can find out more here.
Trade tax is a real tax (also known as an object tax) and is based solely on the taxable object, without taking into account the personal circumstances of the tax debtor (e.g. their ability to pay). The taxable object of trade tax is the business and its objective earning power. The trade tax debtor is the entrepreneur. The entrepreneur is the person for whose account the business is conducted. If the activity of a partnership is a business, the company is liable for the tax.
Profits from sole proprietorships and partnerships are subject to trade tax if they generate income from business operations or from corporations.
Profits from freelance, agricultural and forestry or asset management activities (e.g. renting and leasing) are not subject to trade tax.
The tax base for trade tax is the trade income. This is the profit from the trade to be determined in accordance with the provisions of the EStG or KStG, which is to be taken into account when determining the income for the assessment period corresponding to the trade tax assessment period, adjusted for certain additions and deductions. In the case of sole traders and partnerships, the trade income is reduced by an allowance of EUR 24,500. If the business is operated in the legal form of a corporation, the tax-free amount is not granted.
Based on the trade income, the trade tax base is determined by applying the tax base to the trade income.
The trade tax is then calculated by multiplying the trade tax base by the assessment rate, which is determined by the municipality entitled to levy the tax. The assessment rate is 200 percent if the municipality has not set a higher assessment rate.
(Hessian Ministry of Finance)
The tax office is responsible for determining the basis of taxation and for setting the trade tax assessment amount. If a business has business premises in several municipalities during the assessment period, the tax office breaks down the trade tax assessment amount according to a specific key. In principle, the wages are used as the basis for apportionment.
The trade tax assessment notice from the tax office forms the basis for the trade tax assessment for the municipality entitled to levy the tax. The trade tax is calculated by applying the assessment rate to the tax assessment amount and is set and announced in the tax assessment notice. The amount of the assessment rate can be found in the information sheet on assessment rates.
Important: The tax and revenue office is legally bound by the findings made in the trade tax assessment notice. Objections to the assessment notice can only be submitted to the responsible tax office.
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Trade tax
Address
65189 Wiesbaden
Postal address
65029 Wiesbaden
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Public transportation: bus stop Hasengartenstraße, bus line 27.
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- +49 611 316967
- +49 611 313959
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- Barrier-free access is available
- The WC is barrier-free