Trade tax; receipt of the notice of assessment
Trade tax is levied on the income of commercial enterprises (trade income tax). The trade tax to be paid is announced by the municipality in the trade tax notice.
The decisive factor is the profit under income and corporation tax law, which is, however, modified by additions or deductions. The municipalities are entitled to trade tax.
The tax is determined in a staged procedure.
- In the first stage, the tax offices determine the trade income and multiply this by a percentage, which is known as the tax rate. The result is the so-called tax assessment amount, which is determined by the responsible tax office in a separate notice, the so-called tax assessment notice.
- The respective municipality applies a multiplier (assessment rate) to these tax assessment amounts determined by the state tax authority, which it must determine in a local statute. This multiplication results in the trade tax to be paid, which the municipality determines in the trade tax assessment notice. The municipality has wide discretion in determining the amount of the assessment rate. With effect from the 2004 assessment period, a minimum assessment rate of 200% was specified by the Act of December 23, 2003 (BGBl I p. 2922) (Section 16 (4) sentence 2 GewStG).
For taxable commercial enterprises, there is a tax declaration obligation for the determination of the tax assessment amount. The state assessment notice and the municipal trade tax assessment notice may have to be appealed separately. In doing so, the deadlines specified in the respective instructions on appeals must be observed. It should be noted that the municipality is bound by the state assessment notices and that objections to the state assessment notices can generally no longer be taken into account in the municipal tax levy if the state assessment notices are final.
Responsible for editing:Bayerisches Staatsministerium des Innern, für Sport und Integration
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