Can I pay trade tax as an individual if I have commercial income?
December 6, 2023 | 40,00 EUR | answered by Isabel Möller
Dear tax advisor,
My name is Bernd Waldner and I am self-employed. I have commercial income and I am wondering if it is possible to pay the trade tax as an individual. So far, the trade tax has always been paid directly by my company, but I am wondering if there is a way for me to take on this tax as an individual.
I am concerned that I may be overlooking tax advantages or disadvantages if I pay the trade tax as an individual. It is important to me to optimize my tax situation and avoid incurring unnecessary costs.
Could you please explain to me if it is legally possible to pay the trade tax as an individual? Are there any tax benefits or drawbacks that I should consider? What steps would I need to take to assume the trade tax as an individual?
Thank you in advance for your assistance and I look forward to your response.
Sincerely,
Bernd Waldner
Dear Mr. Waldner,
Thank you for your inquiry regarding the possibility of paying the trade tax as an individual. I would be happy to help you and provide you with all the necessary information.
In general, it is not possible to pay the trade tax as an individual. The trade tax is a tax levied on businesses and traders on their profits. As an individual, you are usually not subject to trade tax, unless you also operate a business in addition to your self-employment.
The trade tax is typically paid directly to the tax office by the company. You cannot personally take over the trade tax, as it is a tax levied at the company level. Therefore, taking over the trade tax as an individual is not possible.
Regarding any tax advantages or disadvantages you should consider, I can tell you that there is usually no benefit in paying the trade tax as an individual. As a business, you have the option to deduct the trade tax as a business expense and therefore reduce your taxes. As an individual, you would not have this option.
If you still wish to take over the trade tax as an individual, you would need to convert your business into a different legal form that allows you to be personally liable for the taxes. However, this would involve significant bureaucratic effort and should only be done after careful consideration.
Overall, it is not recommended to pay the trade tax as an individual, as it generally does not bring any tax advantages. It is important to optimize your tax situation, but in this case, it is advisable to have the business pay the trade tax as usual.
I hope I have answered your questions thoroughly. If you have any further questions, please feel free to contact me.
Best regards,
Isabel Möller
Tax Consultant
