Trade tax apportionment

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The trade tax apportionment is

  • the part of the trade tax that is paid by the municipalities to the federal and state governments,
  • Part of the reorganization of the financial constitution in relation to the federal government and the states
  • the result of a tax exchange between the federal, state and local governments,
  • a compensation item for the municipalities' participation in wage and income tax,
  • partly a contribution from the municipalities to the financing of the German Unity Fund ,
  • a regulatory instrument for financial equalization between federal, state and local governments.

The trade tax apportionment is regulated in § 6 of the law on the reorganization of municipal finances.

Levy

The trade tax apportionment is calculated by dividing the actual business tax revenue of a municipality by the assessment rate set for the survey year and multiplying this amount by the multiplier (apportionment rate). This approach is intended to ensure that the amount of the levy is independent of the local assessment rate and thus, on the one hand, municipalities that demand a higher assessment rate and thus achieve higher tax revenues are not “punished” for this. On the other hand, however, this prevents ruinous competition for company settlements between the municipalities due to a particularly low rate of assessment, resulting in extremely low trade tax income. The income from a higher assessment rate should remain with the municipality; if the assessment rate is significantly below average, the trade tax apportionment could in principle be higher than the trade tax income. However, the amount of the trade tax apportionment should in principle be based on the trade tax income.

Federal and state shares

The duplicator is the sum of the federal and state duplicators. From 2010, the federal multiplier is 14.5%, the state multiplier 49.5% or 20.5% for the eastern German states of Brandenburg, Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt and Thuringia. In order to allow the municipalities to participate in the costs of German reunification, the state multiplier will be increased up to and including 2019. The Federal Ministry of Finance determines the exact number of increases with the consent of the Federal Council. The number of increases for 2015 is 5%.

Development of the federal and state multiplier

year Federal duplicator Country duplicators in
general
Country duplicator
former GDR without Berlin
Elevation Number
(West Only)
2004 20% 55% 26% 7%
2005 19% 54% 25% 8th %
2006 16% 51% 22% 7%
2007 16% 51% 22% 6%
2008 12% 47% 18% 6%
2009 13% 48% 19% 5%
2010 14.5% 49.5% 20.5% 7%
2011 14.5% 49.5% 20.5% 6%
2012–16 14.5% 49.5% 20.5% 5%
2017 14.5% 49.5% 20.5% 4.5%
2018 14.5% 49.5% 20.5% 4.3%
2019 14.5% 49.5% 20.5% -
2020 14.5% 20.5% 20.5% -

calculation

For a (West German) municipality with a local assessment rate of 400 percentage points (example value), the following situation arises, taking into account the trade tax index of 3.5% that has been in effect since 2008 . From an additional euro of business income (taking into account the operating expenses deduction) she receives a tax revenue of approximately 12.3 cents:

The percentage that the municipality now has to pay from this gross tax revenue to the federal and state governments (trade tax apportionment) is

This means that the reference municipality has to pay 17.25% of the 12.3 cents in trade tax income to higher levels and 82.75% (100% - 17.25%) remain with it. The municipality retains around 10.18 cents in taxes from an additional euro of business income. The remaining trade tax income (2.12 cents for every euro of business income generated in its area) must be paid to the federal and state governments, namely 14.5 / 69 to the federal government and 54.5 / 69 to the federal state.

Due date

The trade tax apportionment is to be paid annually by the municipalities by February 1st of the year following the year of collection - taking into account the advance payments / advance payments made (final settlement). The cash outflows (installment payments) take place quarterly up to May 1st, August 1st and November 1st according to the amount of the actual trade tax revenue of the previous quarter . In December, an advance payment is made on the final invoice in the amount of the down payment for the III. Quarter (in individual cases, however, up to the amount of the advance payment for the municipality's share of income tax ). The remaining amount is due by 1.2. the following year to be paid.

Individual evidence

  1. Tables on the development of the trade tax apportionment. Federal Ministry of Finance, February 14, 2018, accessed November 30, 2018 .
  2. ^ Amendments to § 6 of the Municipal Finance Reform Act
  3. Regulations to determine the number of increases for the trade tax apportionment