Tax index (trade tax)
The tax index is a factor for determining the trade tax in Germany . The trade income remaining after deduction of the exemption is multiplied by a tax index and thus results in the assessment basis for the trade tax. Up to 2008 the tax index was staggered, from 2009 it will be a uniform 3.5%, compare the regulation of
Since the corporate tax reform in Germany in 2008 , the scale that was used for partnerships and natural persons (sole proprietorships) has been abolished. The trade tax index fell from 5% (previously applicable to corporations and the highest tier of partnerships and natural persons) to a general 3.5%.
Regulation before 2008
The tax index was staggered until 2008:
|up to 12,000 euros trade income||1 percent|
|up to 24,000 euros||2 percent|
|up to 36,000 euros||3 percent|
|up to 48,000 euros||4 percent|
|over 48,000 euros||5 percent|
This meant that only a trade income of 72,500 euros was charged with a trade tax index of 5 percent. This discount was only valid for partnerships and natural persons (sole proprietorships). Corporations were charged 5 percent from the first euro.