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Retained

  • Statutory Tax Rate 21
  • Surtax Based on Taxable Income 8.5
  • Surtax Based on Statutory Tax 0
  • Surtax Deductible from Taxable Income 0
  • Statutory Tax Deductable 0
  • Effective Tax Rate 29.5

Statutory Tax Rate

The standard corporate tax rate is 21%. A reduced rate of 12.5% (reduced from 17% effective 1 April 2020) applies to the first EUR 25,000 (previously EUR 15,000) of taxable profits and the excess will be subject to the standard corporate tax rate for small and medium-sized enterprises. A state surcharge is levied on taxable profits at the following rates: 3% on taxable profits between EUR 1.5 million and up to EUR 7.5 million; 5% on profits between EUR 7.5 million and EUR 35 million; and 9% on profits in excess of EUR 35 million. A municipal surcharge is levied on taxable profits at rates up to 1.5%, depending on the municipality, resulting in a maximum possible combined tax rate of 31.5%.

Effective Tax Rate

A municipal surtax of up to 1.5% applies based on taxable income. Rate may be reduced depending on location. In addition, a state surtax of 3.0% applies on taxable income exceeding EUR 1.5 million, 5.0% on taxable income exceeding EUR 7.5 million, and 7.0% on taxable income exceeding EUR 35 million.