Are there special rules for certain industries regarding trade tax?
February 26, 2023 | 40,00 EUR | answered by Simon Schaaf
Dear tax advisor,
My name is Bernhard Rüppel and I run a small business in the IT industry. In recent years, I have noticed that the trade tax burden for my company has been steadily increasing. I am wondering if there are any special rules or tax breaks for companies in the IT industry that I am not aware of.
My company has been steadily expanding in recent years and we have also been investing in new technologies and employees. Nevertheless, the trade tax burden seems to be increasing and this is putting a significant strain on our financial situation. I am concerned that the rising tax burdens could lead to financial constraints in the long term and could hinder the growth of my company.
Therefore, I am reaching out to you to learn more about any potential special rules or benefits for companies in the IT industry. Are there specific tax breaks that we could take advantage of to reduce our trade tax burden? Are there perhaps other ways to optimize the tax burden for our company?
I would greatly appreciate your support and expertise on this matter. Thank you in advance for your help.
Best regards,
Bernhard Rüppel
Dear Mr. Rüppel,
Thank you for your inquiry regarding the trade tax burden for your company in the IT industry. It is understandable that you are concerned about the increasing tax burden and are looking for ways to optimize it. I am happy to provide you with some information on possible special rules or tax benefits that could be relevant for companies in the IT industry.
First and foremost, it is important to mention that there are no specific tax benefits or special rules in Germany that apply exclusively to companies in the IT industry. Trade tax is generally levied on the profit of a company and is based on the trade income. However, there are general ways to reduce the trade tax burden.
One possibility, for example, would be to use loss carryforwards. If your company has incurred losses in previous years, these losses can be offset against the profits of the current year to reduce the tax burden. Additionally, you can also claim investments in your company for tax purposes to reduce the trade tax. This includes, for example, depreciation on assets or the use of tax incentives, such as the research allowance.
Furthermore, you could consider whether your company could potentially benefit from the so-called "trade tax reduction" according to § 9 GewStG. This regulation allows certain companies to exempt a portion of their trade income from taxation in order to reduce the trade tax burden. However, the requirements for a trade tax reduction are very specific and should be examined on a case-by-case basis.
Overall, it is advisable for you to consult with a tax advisor or tax expert to analyze your individual tax situation and develop possible optimization opportunities. An experienced tax advisor can help you develop tax-efficient structures for your company and support you in their implementation.
I hope that this information is helpful to you and I am available for any further questions. Thank you for your trust and your inquiry.
Sincerely,
Simon Schaaf, Tax Advisor
