Trade tax
If you run a commercial business in Munich, it is subject to trade tax.
Course description
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Calculation of trade tax Your local tax office determines whether you are liable for trade tax, calculates your trade income and sets the trade tax assessment base and the tax period in the trade tax assessment notice. The City of Munich then multiplies the trade tax assessment base by the currently applicable assessment rate of 490 per cent.
The calculated amount is shown as trade tax in the trade tax assessment notice.
Please note that the City of Munich is bound by the tax office’s findings as set out in the trade tax assessment notice. You can therefore only raise objections to your liability for trade tax and the amount of tax due with the relevant tax office.
Due dates You must make quarterly advance payments of trade tax: on 15 February, 15 May, 15 August and 15 November each year. The amount due is shown in your latest trade tax assessment notice.
Prerequisites
Any standing commercial enterprise is subject to trade tax if it is operated in Germany. A commercial enterprise is a commercial enterprise within the meaning of the Income Tax Act. Corporations are subject to trade tax due to their legal form. In principle, agricultural and forestry businesses and freelance activities are not subject to trade tax.
Required documents
- You must submit your trade tax return, together with all the necessary supporting documents, to the relevant tax office. You do not need to send any further documents to the City of Munich.
- You will receive your trade tax assessment by post. If you wish your assessments and other correspondence to be sent to another person, you can appoint an authorised representative. For example, your tax adviser’s office can handle the correspondence on your behalf.
- By submitting a notice of assignment or pledge, you can arrange for any tax refunds to be paid directly to a creditor. To do this, please send us the completed form.