Company tax in the EU – Germany
The company tax rate for Germany is 15%.
A 5.5% solidarity surcharge is levied on company tax. The municipalities also levy trade tax, and set the rate, which averages 13.96 %. The combined rate of company tax, trade tax and the solidarity surcharge is approximately 30%.
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.