Paying trade tax

Are you an individual and generate a trade income of more than EUR 24,500 with your domestic business? Then you are above the tax-free amount and must submit an electronic trade tax return to your tax office. In it, you declare how high your trade income was in the tax period - i.e. in the previous calendar year.

You also declare further additions or deductions based on your profit or loss - income less expenses.

You also indicate the municipality in which you operate your business. You will then receive a notice from the tax office about the so-called trade tax assessment amount.

The tax office determines the trade tax assessment amount by multiplying the trade income by the tax assessment rate of 3.5 percent. This measurement amount is the basis for the amount of trade tax.

The tax office informs the municipality in which you operate your business about the trade tax assessment amount. You will then receive a notice of the trade tax you have to pay or the trade tax to be refunded to you by the municipality.

The municipality calculates the trade tax from the trade tax assessment amount of the tax office multiplied by the trade tax multiplier of the municipality. Each municipality determines its own assessment rate.

The municipality also decides on the advance payments of trade tax to be paid by you in the future for the following tax period with the notice of trade tax.