UG & GmbH day to day · 4.3
How is trade tax calculated?
Short answer
Gewerbesteuer (trade tax) is calculated in four steps: profit, plus certain add-backs, minus deductions, multiplied by the 3.5% base rate (Messzahl), multiplied by the municipality's assessment rate (Hebesatz). The tax office determines the base amount, and the municipality levies the tax.
Key points
- Profit from the tax balance sheet
- Add-backs (Hinzurechnungen): portions of financing costs are added back, such as interest or rent, but only exceeding an allowance
- Deductions (Kürzungen): such as profit shares from participations above a minimum quota
- Result × 3.5% = Steuermessbetrag (tax base amount)
- Tax base amount × Hebesatz (assessment rate) = Gewerbesteuer
Example: €100,000 taxable trade profit × 3.5% = €3,500 base amount. At a 400% assessment rate: €14,000 trade tax.
A UG and GmbH have no tax-free allowance, and trade tax is not deductible as a business expense.
Figures & thresholds (as of November 2026)
- Base rate (Messzahl): 3.5%
- Allowance for add-backs: €200,000
- Minimum assessment rate (Mindesthebesatz): 200%
Legal basis
§ 7 GewStG§ 8 GewStG§ 9 GewStG§ 11 GewStG§ 16 GewStG§ 4 Abs. 5b EStG
Continue
- Next video: What Is the Hebesatz, and Why Does the Location Matter?
- Related: Myth: “The UG also has a €24,500 trade tax allowance.”
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