trade tax
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trade tax
A tax that municipalities in Germany levy on the earnings of commercial businesses.
Jedes Unternehmen muss jährlich seine Gewerbesteuer an die zuständige Gemeinde abführen.
Every company must pay its trade tax to the responsible municipality each year.
The word is composed of 'das Gewerbe' (business, trade) and 'die Steuer' (tax paid to the state). So it is literally the tax for a business.
Die Höhe der Gewerbesteuer hängt vom Gewinn des Unternehmens ab.
The amount of trade tax depends on the company's profit.
In connection with 'Gewerbesteuer' (trade tax), the verbs 'zahlen' (to pay), 'abführen' (to remit/pay over), or 'entrichten' (to pay) are often used. A municipality can 'erheben' (levy) or 'festsetzen' (set/assess) the tax.
Das Unternehmen muss eine hohe Gewerbesteuer an die Stadt entrichten.
The company has to pay a high trade tax to the city.
The tax is levied 'auf' (on) a company's earnings (accusative). It is paid 'an' (to) the responsible municipality (accusative).
Die Gewerbesteuer wird auf den Gewinn des Betriebs erhoben und an die Kommune gezahlt.
The trade tax is levied on the business's profit and paid to the municipality.
income tax
'Einkommensteuer' and 'Gewerbesteuer' are both taxes, but they are based on different things. 'Einkommensteuer' (income tax) is paid by an individual on their income, for example from employment or self-employment. 'Gewerbesteuer' (trade tax) applies to the earnings of a commercial business and is levied by the municipality. They can be confused because business owners often have to deal with both. A simple guide is: Einkommensteuer is about a person's income, while Gewerbesteuer is about the profit of a business.
Die kleine Firma muss in ihrer Stadt Gewerbesteuer zahlen.
The small company has to pay trade tax in its town.
Nach der Steuererklärung bekommt Anna einen Teil der Einkommensteuer zurück.
After filing her tax return, Anna gets part of her income tax back.