Company tax in the EU – Germany
The company tax rate for Germany is 15%. There is also a solidarity surcharge of 5.5% levied on the corporate income tax and a municipal surcharge of between 14% and 17% depending on municipalities. The combined rate is between 30-33% approximately. More information can be found on the de.
When you set up your business entity, you should ensure that you do the following:
- Make company tax advance payments by the deadline. Once the amount is established, advance payments are due on a quarterly basis on 10 March, 10 June, 10 September and 10 December each year.
- File the company tax return by the deadline, i.e. in principle by 31 May the following year.
What profits do you pay company tax on?
Taxable profits include the money your company or association makes from:
- Doing business
- Selling assets for more than they cost (chargeable gains)
If your company is based in Germany, it must, in principle, pay company tax in Germany on all its profits worldwide.
If your company is not based in Germany but has an office or branch there, it only pays corporation tax and trade tax on the profits from its activities in Germany.