Corporate Tax Guide

Germany

Germany taxes corporate residents on worldwide income. Corporate profits are generally subject to a 15% corporation tax plus a 5.5% solidarity surcharge on that tax, resulting in a combined rate of 15.825%, and trade tax generally ranging from 8.75% to 20.3% depending on the municipality. Capital gains are generally subject to the ordinary corporate tax rules. Quarterly instalments are generally due on 10 March, 10 June, 10 September, and 10 December, while the annual corporate income tax return is generally due on 31 July, with extensions possible when a professional tax advisor is engaged. The general VAT rate is 19%. OECD baseline data indicates a composite effective average tax rate of 26.59 and a composite effective marginal tax rate of 11.00 for Germany. PwC also notes legislative changes adopted in 2025 under which the corporation tax rate is planned to decrease gradually from 2028 to 2032.

Time of Update — 4/02/2026

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Germany

Germany Corporate Tax Brief

PwC World Tax Summary OECD Statistics

Time of Update — 4/02/2026

Corporate Income Tax (CIT)

General CIT Rate:

Corporate income tax is 15%, plus a 5.5% solidarity surcharge on the corporate income tax, resulting in a combined rate of 15.825%. Trade tax applies separately and generally ranges from 8.75% to 20.3% depending on the municipality. According to legislative changes adopted in 2025, the corporation tax rate is planned to decrease to 14% in 2028, 13% in 2029, 12% in 2030, 11% in 2031, and 10% from 2032 onward, with the solidarity surcharge continuing to apply.

CIT Return Due Date:

July 31st (or extended to the end of February of the following year if the taxpayer instructs a professional tax advisor).

CIT Payment Due Date:

As stated in the assessment notice.

CIT Estimated Payment Due Date:

Quarterly installment payments are due on the 10th day of March, June, September, and December.

Withholding Tax (WHT)

Resident Withholding Tax (Dividend/Interest/Royalty):

25/25/0

None-Resident Withholding Tax (Dividend/Interest/Royalty):

25/0/15

Value-Added Tax (VAT)

General VAT Rate:

Learn More

Capital Gain Tax (CGT)

General Capital Gain Tax Rate:

Capital gains are subject to the normal corporate tax rate.

Effective Tax Rate (ETR)

Composite Effective Average Tax Rate:

26.59

Composite Effective Marginal Tax Rate:

11.00

Additional info

Germany Corporate Income Tax

Standard Corporate Income Tax (CIT) Rate:

Corporate tax is levied at a flat rate of 15%, followed by a surcharge of 5.5% on the amount paid (union surcharge). This gives the total tax rate to 15.825%.

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Germany VAT

VAT: The standard VAT rate is 19%, with a reduced 7% rate for certain supplies and a 0% rate for certain photovoltaic systems and related devices. Preliminary VAT returns are generally filed monthly or quarterly by the 10th day of the following month. Monthly filing generally applies where prior-year VAT payable exceeded EUR 9,000, while taxpayers may be relieved from preliminary filings if prior-year VAT payable did not exceed EUR 2,000. Additional reporting may apply for intra-EU cross-border transactions, and domestic B2B e-invoicing has been introduced with transitional rules from 2025.

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Germany labor tax

Payroll tax and social security: Employers must withhold payroll tax from employee remuneration and remit it to the tax office, usually monthly. Social security generally covers pension, unemployment, health care, nursing care, and accident insurance. From 1 January 2025, the main rates are 18.6% for pension, 2.6% for unemployment, 14.6% plus an average 2.9% supplement for statutory health insurance, and 4.2% for nursing care, while accident insurance is borne by the employer. Employees with annual earnings above EUR 77,400 (2026) may opt out of statutory health and nursing care insurance if privately insured.

Germany import and export duties

Customs duties: Germany applies the EU common customs system. Many imports from EU candidate countries and certain partner countries may benefit from a 0% customs rate, while manufactured goods from other countries are generally taxed at 0% to 15% based on import value. Countervailing duties may apply to certain imports and can exceed 15%. PwC also notes ongoing customs developments, including digitalisation, sanctions-related compliance, and proposed EU customs reforms.

Environmental taxes

Environmental taxes: Germany does not generally impose a standalone environmental tax. According to PwC, environmental elements are mainly built into excise taxes, and air passenger duty is the main tax specifically linked to pollution.