Calculate German Korperschaftsteuer (15%), Solidarity Surcharge, and Gewerbesteuer for your company.
How does German corporate tax work?
German corporations pay three tax components: Korperschaftsteuer at a flat 15%, a Solidarity Surcharge of 5.5% on the corporate tax (effective 0.825% of profit), and Gewerbesteuer (trade tax) which depends on the municipal Hebesatz. The combined effective rate typically ranges from 28% to 33%.
What is the Hebesatz and how does it affect my tax?
The Hebesatz is a municipal multiplier applied to the trade tax base rate (Steuermesszahl of 3.5%). Each municipality sets its own Hebesatz, with the legal minimum being 200%. Typical values range from 300% to 500%. For example, Munich uses 490%, Berlin 410%, and Frankfurt 460%.
Do corporations receive a trade tax allowance?
No. The trade tax allowance (Freibetrag) of EUR 24,500 is only available to sole proprietors and partnerships. Corporations such as GmbH and AG pay trade tax from the first euro of profit.
Disclaimer: These calculations are estimates based on 2025 German tax rules and should not be considered professional tax advice. Consult a Steuerberater for your specific situation.
How GmbH and AG companies are taxed, including Gewerbesteuer and profit distribution
What is the corporate tax rate in Germany?
German corporations pay 15% Körperschaftsteuer (corporate income tax) plus 5.5% Solidaritätszuschlag on that, making the effective rate 15.825%. On top of this, companies pay Gewerbesteuer (trade tax), which varies by municipality. The combined rate is usually between 30% and 33%. On a €100,000 profit, you pay roughly €30,000 to €33,000 in total corporate taxes.
How does Gewerbesteuer work for corporations?
Gewerbesteuer is calculated by multiplying your profit by a base rate of 3.5% and then by the local Hebesatz (multiplier). Most cities have a Hebesatz between 300% and 500%. In Munich it is 490%, making the trade tax rate 3.5% × 490% = 17.15%. In a cheaper town with 300%, it is 10.5%. Corporations cannot offset Gewerbesteuer against income tax like sole traders can.
How is profit distribution to shareholders taxed?
When a GmbH pays dividends to individual shareholders, the shareholder pays 25% Abgeltungsteuer plus Solidaritätszuschlag and possibly Kirchensteuer. Alternatively, shareholders can elect the Teileinkünfteverfahren where 60% of the dividend is taxed at their personal rate. On a €50,000 dividend, the Abgeltungsteuer method costs about €13,190; the partial income method might cost less for lower earners.
What is the minimum tax for a GmbH?
There is no minimum corporate tax in Germany. If your GmbH makes no profit, you pay no Körperschaftsteuer. However, you still owe the minimum Gewerbesteuer in some municipalities and must pay IHK (chamber of commerce) contributions starting at about €150 per year. A GmbH also has annual accounting and filing costs of at least €2,000 to €5,000.
Can a GmbH carry losses forward?
Yes, a GmbH can carry losses forward indefinitely with the Verlustvortrag. Losses from the current year are first offset against the previous year's profit up to €1 million (Verlustrücktrag). Remaining losses are carried forward and can reduce future profits by up to €1 million fully, plus 60% of profits above €1 million. A €500,000 loss can save roughly €150,000 in future taxes.
How does the managing director's salary affect corporate tax?
The Geschäftsführer (managing director) salary is a deductible business expense for the GmbH, reducing its taxable profit. If the GmbH earns €150,000 and pays €80,000 salary, only €70,000 is subject to corporate tax. However, the salary must be at arm's length — an unreasonably high salary can be reclassified as a hidden profit distribution (verdeckte Gewinnausschüttung) by the Finanzamt.
Bundesfinanzministerium-Aligned: Based on 2025 Bundesfinanzministerium rates and thresholds. For personal advice, speak to a qualified Steuerberater (tax adviser).
Disclaimer: This calculator provides estimates based on current German tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms
Related Calculators
VAT Calculator
Add or remove German VAT at 19% standard or 7% reduced rate.
Dividend Tax
Calculate Abgeltungsteuer on dividends including Soli and church tax.
Trade Tax
Calculate Gewerbesteuer using your municipal Hebesatz multiplier.
GmbH vs UG
Compare GmbH and UG company structures — capital, costs and tax implications.
Depreciation Calculator
Calculate linear and declining-balance depreciation for business assets.