Corporate Taxes in Germany
German corporate tax rates
Germany has a uniform corporate tax rate of 15%, plus a solidarity surcharge of 5.5% on profit after tax (7.83% on profit before tax). Cantonal and communal corporate income taxes (CITs) are added to the federal CIT, resulting in an overall effective tax rate that varies depending on the location of the business.
Calculating the effective corporate tax rate in Germany
The effective corporate tax rate in Germany is the sum of the corporate income tax, the solidarity surcharge, and the trade tax. The corporate income tax rate is 15%, plus a solidarity surcharge of 5.5%, resulting in a total rate of 15.825%. The trade tax is calculated on a municipality-by-municipality basis, and rates can vary significantly. However, the average trade tax rate in Germany is around 14%. This means that the overall effective corporate tax rate in Germany is typically around 30%.
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