Business enterprises bring enormous added value to cities and communities alike. At the same time, however, they also create additional burdens, for example due to the necessary infrastructure. The trade tax is intended to grant the municipalities a “quasi-compensation” of these additional expenses. Part of the determination of the tax base is therefore also additional calculations according to § 8 GewStG. Operating expenses within the meaning of § 4 (4) EStG are partly not deductible for trade tax purposes.
The income of trade tax is exclusively the municipalities. According to § 7 sentence 1 GewStG, the respective income or corporate income tax profit is to be used as a basis for assessment. Certain expenses that have reduced this profit (§ 15 EStG) or income (§§ 7 and 8 KStG) are considered by legislators to be undesirable for trade tax purposes. For example, the background
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.