# Germany Corporate & Trade Tax Compliance

> German corporations pay corporate income tax at 15% plus a 5.5% solidarity surcharge on that tax, and municipal trade tax whose rate depends on the municipality's multiplier, giving a combined burden of roughly 30%. Annual corporate tax, trade tax and VAT returns are prepared by a Steuerberater, and financial statements are published in the company register.

Practice: Germany Business Services — https://www.industax.com/services/germany-business/

Indian subsidiaries in Germany are usually service providers to the group, priced on a cost-plus basis; documentation must satisfy both German and Indian transfer pricing rules.

We coordinate the German filings with partner Steuerberater and keep the Indian side aligned.

## Key facts

| Item | Detail |
| --- | --- |
| Corporate tax | 15% + 5.5% solidarity surcharge |
| Trade tax | Depends on municipal multiplier |
| Combined | Roughly 30% |
| Publication | Financial statements in the company register |

## Who needs this

- German GmbHs and UGs
- German subsidiaries of Indian groups
- Companies with German permanent establishments

## What's included

- Coordination with Steuerberater
- Transfer pricing alignment
- Annual compliance calendar

## Documents

- Accounts and ledgers
- Intercompany agreements

## Process

1. **Close** — German GAAP accounts prepared.
2. **File** — Tax returns via Steuerberater.
3. **Publish** — Accounts published.

Work that legally requires a German Steuerberater is signed by a partner professional; Indus Tax coordinates it.

## FAQs

### Why is trade tax different between cities?

Each municipality sets its own multiplier on the base rate, so the effective trade tax varies by location.

### Are dividends from a German GmbH taxed in India?

Yes, in the Indian shareholder's hands, with credit for German withholding tax under the treaty.

### Who must sign German tax returns?

The managing directors, usually filed electronically by the company's Steuerberater.

## Official sources

- German Federal Central Tax Office: https://www.bzst.de/

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Canonical page: https://www.industax.com/services/germany-business/germany-corporate-trade-tax
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.