the Trade tax is a municipal tax levied on the profits of commercial enterprises in Germany. It supplements the Corporate body- resp. income tax and represents an important source of income for municipalities.
Companies that are commercially active also pay trade tax in addition to corporate or income tax. This is paid to the municipality in which the company is based. The calculation is based on the trade income, which is derived from the taxable profit, but adjusted for certain additions and deductions.
In SAP Business One trade tax is not managed directly via special functions such as tax codes or automatic accounts, as is the case with VAT, for example. Instead, the trade tax flows as Expense items into the financial accounting in. The corresponding entry is made manually, usually by the tax consultant or finance department as part of the year-end closing process.
The system provides the data required for this, such as
- the Profit according to Profit and loss account (P&L),
- the Income and expensesto which statutory additions or deductions may relate,
- and Indirect investigation options above EBT (earnings before taxes).
In practice, trade tax is actually calculated outside of SAP Business One, e.g. in DATEV or as part of the tax return by the tax consultant.
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