The Germany Corporation Tax Calculator is designed to allow free online calculations for resident and non-resident companies, SME's (Subject Matter Experts) and corporations who have accrued income from profits in Germany. The calculator allows corporation tax calculations for multiple scenarios including location specific allowances and rates for Mainland Portual, Madeira and Azores, rates and allowances tailored for tax filing status, profit amounts and allowances in 2023. This calculation provides you with two important pieces of financial information, the first is the amount of corporation tax you owe on profits generated in Germany, the second is the net amount of profit after tax which allows you to view exactly how your business investments in Germany are performing. Once you have calculated the corporation tax due, you can print the document or email the corporations tax document to yourself or a colleague for later reference.
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Corporation Tax in Germany or "Corporation Income TAX" (CIT) is calculated on a percentage of a company's profits, this typically includes trading income, passive income and income from capital gains. Certain business expenses can be deducted from the gross profits in order to provide a net profit from which CIT can be calculated.
You can calculate Corporation Tax in Germany for resident and non-resident companies by multiplying the profits accrued by the appropriate corporation tax rate. The appropriate tax rate is determined by the German Government, this is reviewed periodically with changes published in the German Tax Tables for each year. The rates and the profits which are subject to corporation tax in Germany are determined by the company residence status for tax purposes.
A Resident company of Germany is defined as a company which has its registered office in Germany or a central place of management located in Germany. If using the registered address as qualification for residency purposes, the address must match the company's address defined on their articles of incorporation.
We have included the Corporation Tax formula for Germany so that you can calculate corporation tax manually or update your systems with the relevant corporation tax rates in Germany. The latest corporation tax rates in Germany for 2023 are displayed in the Germany tax tables. For those who prefer to use the Germany Corporation Tax Calculator rather than calculate the tax manually, we have included a step-by-step guide to using the calculator for Corporation Tax calculations (see the guides under "How to use the Germany Corporation Tax Calculator").
The Corporation Tax in Germany for corporations and SMEs is calculated using the following Corporation Tax formula:
A flat corporate income tax of 15% applied to the amount of taxable global income on tax resident entities and non-resident entities with non-resident company's only liable for corporation tax based on profits from trade within Germany.
In addition to the standard corporation tax calculation, Germany applies a 5.5% solidarity surcharge (calculated as a percentage or capital gains tax due). In addition to this, all commercial business operations in Germany are liable for trade tax which is calculated on a municipal basis, set by local authorities and varying from region to region. The rate is generally the same for all businesses within each region with the standard trade tax rate for each region defined below:
The tax year is considered as the calendar year, although a different tax year can be requested if it coincides with the accounting period.
Consolidated returns are permissible upon meeting the defined criteria. Penalties and interest are payable for late filing and failure to comply with German tax law.
Similar to PIT, Resident entities are taxed on worldwide income and non-resident companies are subject to tax only on Portuguese-source revenue. Profits generated by residents on foreign source are taxed as per corporate tax regime.
You can view the calculator inline or full screen. The inline view displays the calculator surrounded by the normal menus and links to other tools and supporting information. The full screen view removes or the unnecessary information so you can focus solely on using the Germany Capital Gains Calculator. The following step-by-step guides to calculating capital gains tax online with the Germany Capital Gains Tax Calculator covers all the functions within the capital gains tax calculator:
The Corporation Tax Calculator will then automatically calculate the tax due based on the details entered.
If you found this information about Corporation Tax in Germany useful and liked our free online corporation tax calculator for Germany then you will probably find the following calculators and supporting Germany tax tables useful.