From when on trade tax?

The trade tax is levied by your municipality. The prerequisite is the submission of a tax assessment to the tax office. The tax office first determines your profit in a formal notification, from which the trade tax base is derived. On the basis of this trade tax base, the municipality levies the trade tax according to its individual assessment rate.

Trade tax only above the tax exemption

• If your trade income is below a limit of € 24,500, you do not pay any trade tax.
• If you work in a variety of ways in your company, think about whether and when you want to separate the company and take advantage of the trade tax allowance of € 24,500 for each individual company.
• Example: You run a carpenter's shop and outsource the activity as a funeral home. Then you run both parts of the business as independent businesses. The prerequisite is that both parts of the company are organizationally, in particular in terms of personnel, accounting and space separate.
  instagram viewer
• You calculate your business tax on the basis of your profit, which you have determined after deducting your operating expenses from operating income.


GbR and trade tax - when taxes are due

For self-employed, who have chosen the legal form of the GbR for a company, are ...

• To this profit amount, you have to add 25% of your operational financing costs, i.e. all interest and all loans that have a financing character in the broadest sense. Your rents and the profit shares of silent partners as well as license fees are also included, since these only relate to your Profit calculation reduce the profit, but not be used equally for the calculation of your business tax can.
• Your trade income is then determined after deducting the tax exemption of € 24,500 and results in the assessment basis. The trade tax base is determined based on the tax base amount of 3.5%.

When to avoid the predisposition

• On the basis of this trade tax base, your municipality then calculates your individual assessment rate. You will receive a trade tax assessment. There are in some cases considerable differences among the municipalities. Many communities are interested in promoting entrepreneurship in their community area and, in competition with other municipalities, sometimes demand minimal rates due to minimal assessment rates Business taxes.
• The trade tax you have to pay does not represent a business expense and does not reduce your taxable profit.
• If you work as a freelancer or as a farmer or forester, you do not pay any trade tax. So check whether and when your activity can possibly be assessed as a freelance activity. The case law on this is very extensive and complex.
• In order to optimize your tax situation, you should definitely seek tax advice.
• You can also do one Business tax calculator use on the internet.