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German trade tax credit against income tax (EStG s. 35)

The break-even is a municipal multiplier of 400 %: below it the trade tax is fully neutralised, above it the excess is a permanent cost. And the credit only offsets — it is never refunded.

2026 rules — verified on September 22, 2026Free, no account

This content is part of the path: Computing and filing trade tax· Step 8 of 10· Next step: German trade tax return (GewSt 1 A)

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Sources and assumptions

  • gesetze-im-internet.de — EStG § 35 Abs. 1 Satz 1 Nr. 1 — tax year 2026, verified on September 22, 2026
    Excerpt from the source : « um das Vierfache des jeweils für den dem Veranlagungszeitraum entsprechenden Erhebungszeitraum nach § 14 des Gewerbesteuergesetzes für das Unternehmen festgesetzten Steuermessbetrags (Gewerbesteuer-Messbetrag) »

Calculation assumptions

  • A sole trader under subsection 1 sentence 1 no. 1 is computed. For partnerships the share of the base amount is separately assessed (subs. 2); this calculator does not apportion it.
  • Enter the REDUCED tariff tax within sentence 4, that is after crediting foreign taxes and treaty amounts.
  • An unused credit is neither refunded nor carried forward. It is definitively lost.

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This result is provided for information purposes only and does not constitute personalised tax advice. Check your situation with the tax authorities or a professional.