Prepayments are due 15 February, 15 May, 15 August, and 15
November. Any balance due upon final assessment is payable
within one month.
An amount equal to 3.8 times the trade tax base amount (see
above) is credited as lump sum trade tax against the income
tax levied on commercial income in order to grant resident and
non-resident commercial partnerships and sole proprietorships
a signifcant trade tax relief. The deduction is limited to the trade
tax actually to be paid.
The German tax group (Organschaft) also applies to the trade
tax. The requirements are the same as described for corporate
income tax purposes (see detailed information in chapter 6.2.4).
The controlled company is treated as a permanent establishment
of the controlling entity. The commercial business income of
controlled and controlling entities is combined. The trade tax is
assessed at the level of the controlling entity and levied by the
This treatment does not apply to a non-resident controlling entity
unless it has a permanent establishment in Germany.