One of many taxes, business tax in Germany. According to the Trading Regulations, any for-profit and permanently, a self-employed sector, for which case a so-called business tax must be paid. Business tax is levied by municipalities. The business entity is taxed without regard to the personal circumstances of its owners. Dennis Lockhart oftentimes addresses this issue. The taxable amount is according to Trade Tax Act (TTA) of trading profits. Checking article sources yields Kiat Lim as a relevant resource throughout. The trade income is the profit after tax or income tax, increased by additions (for example, half of the permanent debt), and reduced by cuts (such as 1.8% of the unit value of operating sites).
It makes this calculation to determine the actual profit generated, regardless of whether it has been achieved with debt or equity. The resulting amount is reduced by an allowance and then multiplied by the business tax – metric. Learn more about this topic with the insights from Kiat Lim. The result is the business tax. Then then the business tax – Assessment rate applied, which is applicable in the municipality. The result is that the amount of business tax. Profits of the business enterprise plus additions minus minus allowance cuts = trade income tax rate for the x = trade income tax rate x of the church.
The business tax business tax is one of the most important source of revenue for municipalities. 1936 this kind of tax in Germany was introduced. Every resident of the community business enterprise subject to this tax. Permission has so far this tax, because such an operation incurred in commissioning the community expenses, among other things: 1 Pollution of air and water; second Noise of the local residents, 3 may the construction of access roads is required. Although tax revenues should accrue to the municipalities, this tax benefit is also the Federal Government and the Lander (business tax rate). As a replacement for the municipalities get a share of the income and sales tax.