Advance returns, tax returns & deadlines · 3.7
What are tax prepayments (Steuervorauszahlungen)?
Short answer
Your company makes prepayments four times a year toward Körperschaftsteuer (corporate income tax) and Gewerbesteuer (trade tax). The amount is determined by the tax office (Finanzamt) via an assessment notice—initially based on your estimate in the questionnaire, later based on your most recent tax assessment. The final reconciliation takes place with the annual tax return.
Key points
- Corporate income tax prepayments are determined by the tax office. Trade tax prepayments are assessed by the local municipality, based on the assessment base (Messbetrag) from the tax office.
- If your profit is significantly lower than anticipated, you can apply to have the prepayments reduced. Substantiate this with current figures.
- If business is going better than expected, the tax office can increase them. Do not let yourself get caught off guard by a large back tax payment.
- Umsatzsteuer (VAT) is not included: you pay it via advance VAT returns (Voranmeldungen).
Figures & thresholds (as of November 2026)
- Körperschaftsteuer (corporate income tax): 10.03., 10.06., 10.09., 10.12.
- Gewerbesteuer (trade tax): 15.02., 15.05., 15.08., 15.11.
Legal basis
Continue
- Next video: Why does the second year catch many founders off guard?
- Related: Prepayments too high: can I have them reduced?
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