Business tax
Source: Serviceportal Rheinland-PfalzThe trade tax is a municipal tax (also called real or object tax) and is linked solely to the object of taxation, without taking into account the personal circumstances of the tax debtor (e.g. his ability to pay). The subject of trade tax is the business enterprise and its objective earning power. The debtor of the trade tax is the entrepreneur. An entrepreneur is the person for whose account the trade is operated.
Profits from the exercise of a commercial activity of sole proprietorships, partnerships or corporations are subject to trade tax.
Trade tax returns must be submitted to the tax office. On the basis of the profit determined in accordance with the provisions of the Income Tax Act or the Corporation Tax Act, increased and reduced by certain amounts, which in particular take into account the object tax character of trade tax and, for example, to avoid a double burden with trade and property tax, the tax office determines the trade tax assessment amount (tax assessment figure from 2008 always 3.5 percent), which is notified to the taxpayer by notice. This trade tax assessment notice is the basic assessment notice for the determination of trade tax and trade tax advance payments by the cities and municipalities.
The trade tax is calculated by multiplying the trade tax assessment amount by the levy rate, which is to be determined by the municipality entitled to levy.