Income tax and corporate income tax is based on the taxable income of the respective person. This is laid down in § 2 (5) sentence 1 EStG and § 7 (1) KStG. In the Trade Tax Act (GewStG) there is also a regulation on the tax base, because according to § 7 sentence 1 GewStG, the business profit is the starting point for the further calculation of the tax. We look at how you determine the business income!
In principle, § 7 sentence 1 GewStG standardizes that the relevant business profit is the profit from business operations determined in accordance with § 15 EStG. According to § 2 (1) GewStG, the scope of application of the GewStG only includes commercial enterprises, which by virtue of statutory fiction also include all corporations resident in Germany (paragraph 2).
However, the business profit correctly determined according to the provisions of the EStG or KStG is to be used here. The first step is therefore usually to verify the determination of the income tax profit. So it happens – for example in the tax consultant exam – again and again that exam writers indicate a business income that still has to be corrected. Typical issues are here:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.