German corporate tax has three layers: a flat 15% Körperschaftsteuer (corporate income tax) on net profit, a 5.5% solidarity surcharge on that corporate tax (adding ~0.825% effectively), and Gewerbesteuer (municipal trade tax), which varies by location — a 3.5% base rate multiplied by a local municipal factor (typically 200-900%), producing an effective trade tax of roughly 7-17.5%. Combined effective corporate tax rates land around 29-33% depending on municipality (e.g. Berlin ~28.2%, Munich ~32.2%). Following a 2025 reform, the corporate income tax rate is scheduled to decrease by 1 percentage point annually starting 2028, targeting a combined rate of ~25% by 2032.
A 2025 reform schedules a 1-point annual reduction in corporate income tax starting 2028, targeting ~25% combined by 2032.
Required Documents
Certificate of incorporation
Tax registration with local Finanzamt
Annual financial statements
Common Mistakes
Quoting only the 15% Körperschaftsteuer rate without accounting for the municipality-dependent Gewerbesteuer, which materially changes the true effective rate.
Assuming the same effective rate applies everywhere in Germany — trade tax multipliers vary significantly by municipality (Berlin vs. Munich can differ by 4+ percentage points).