What are the current tax rates for corporate tax?
July 31, 2023 | 40,00 EUR | answered by Mia Köhler
Dear tax advisor,
My name is Björn Eckstein and I am the managing director of a medium-sized GmbH. In recent years, our business has developed well and we have been able to continuously increase our revenues. However, I am now faced with the challenge of calculating the corporation tax for my company and am unsure about the current tax rates.
The current situation is as follows: The GmbH generates a profit of 500,000 euros in the year 2021. I am aware that the corporation tax depends on the amount of profit and therefore want to make sure that I apply the correct tax rates to avoid making mistakes.
My concerns are that I do not know exactly what tax rates are currently in effect and whether they may have changed. I do not want to risk providing incorrect information and potentially facing tax consequences for my company.
Therefore, my question to you is: What are the current tax rates for corporation tax in 2021? Could you please provide me with the relevant tax rates that I should use for the calculation of the corporation tax for my GmbH? I appreciate your help and support on this matter.
Thank you in advance.
Sincerely,
Björn Eckstein
Dear Mr. Eckstein,
Thank you for your inquiry regarding the corporation tax for your GmbH. I understand your concerns and would like to help you ensure that you apply the correct tax rates and calculate them correctly.
For the year 2021, the following tax rates apply in Germany for corporation tax:
- For companies with a profit up to 1 million euros, the tax rate is 15%
- For companies with a profit between 1 million euros and 4 million euros, the tax rate is 28%
- For companies with a profit over 4 million euros, the tax rate is 29.8%
In your case, since your company has made a profit of 500,000 euros in 2021, you would apply the tax rate of 15%. This means that you would have to pay 15% of your profit as corporation tax to the tax office.
To calculate the corporation tax correctly, simply multiply your profit of 500,000 euros by the corresponding tax rate of 15%. The result would then be the amount you need to pay as corporation tax.
It is important to calculate the corporation tax correctly to avoid possible tax consequences. If you have any further questions or need assistance with the calculation, please do not hesitate to contact me. I am happy to help.
I hope that this information has been helpful to you. If you have any further questions, please feel free to contact me.
Best regards,
Mia Köhler
