Trade tax
If you run a commercial business in Munich, it is subject to trade tax.
Description
Calculation
Your local tax office decides on your trade tax liability, determines the trade income and sets the trade tax assessment amount and the tax period in the trade tax assessment notice. The City of Munich then multiplies the trade tax assessment amount 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 findings of the tax office in the trade tax assessment notice. You can therefore only raise objections to the trade tax liability and the amount of tax with the responsible tax office.
Due date
You must make quarterly advance payments of trade tax: 15 February, 15 May, 15 August and 15 November each year. The amount due is shown in your last 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 submit your trade tax return with all the necessary 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 notice by post. If your assessment notices and other correspondence are to be sent to another person, you can issue an authorisation for delivery. For example, your tax consultant can take over the correspondence for you.
- With a notice of assignment or pledge, you can have possible tax refunds paid directly to a creditor. Please complete the relevant form and send it to us.