GmbH Tax Prepayments in Germany 2026: Corporate Tax and Trade Tax Explained

Running a GmbH in Germany means paying taxes not just once a year, but in quarterly instalments. The tax office (Finanzamt) collects prepayments on corporate tax (Körperschaftsteuer) and trade tax (Gewerbesteuer) four times per year. Missing a payment triggers late surcharges; underestimating the amount leads to a painful catch-up payment in spring. Here is what every GmbH managing director needs to know.

What Are Tax Prepayments?

Tax prepayments (Steuervorauszahlungen) are advance instalments on the expected annual tax liability. The tax office sets them automatically once your GmbH has filed its first tax return, basing the amount on the most recent tax assessment. At the end of the year the actual liability is calculated: if prepayments were too low you owe the difference; if too high you receive a refund — but only after the annual return is processed, which can take months.

Which Taxes Does a GmbH Prepay?

Corporate tax (Körperschaftsteuer): 15 % on taxable profit, plus 5.5 % solidarity surcharge on top — effectively 15.825 %. Trade tax (Gewerbesteuer)Trade tax (Gewerbesteuer): depends on the local multiplier (Hebesatz). At the national average of 400 % the effective rate is around 14 %; Munich and Berlin charge up to 17 %. Combined, a GmbH typically pays 29–33 % of its profit in taxes.

Quarterly Deadlines

Both corporate tax and trade tax prepayments fall on the same four dates each year:

• 10 March
• 10 June
• 10 September
• 10 December

If the 10th falls on a weekend or public holiday the deadline shifts to the next business day. Payment must arrive at the tax office within three banking days of the due date. Late payments attract a surcharge of 1 % per month.

How Prepayments Are Calculated

The tax office divides the tax liability from the last assessment by four. In the first year — before any return has been filed — it estimates based on your own projections or a flat-rate assumption. Example for a GmbH with €120,000 taxable profit and a 400 % trade tax multiplier:

• Corporate tax: €120,000 × 15 % = €18,000 → €4,500 per quarter
• Solidarity surcharge: €18,000 × 5.5 % = €990 → €247 per quarter
• Trade tax: approx. €16,800 → €4,200 per quarter
• Total per quarter: approx. €8,947

Requesting a Reduction When Profits Drop

If current-year profits are tracking below the prior year, you can submit an informal request to your tax office to reduce prepayments (Herabsetzungsantrag). The request needs a brief explanation and a profit forecast for the current year.

Common reasons for a reduction:

• Revenue decline or loss of major clients
• Exceptional expenses or major investments in the current year
• End of a large project with no follow-on revenue

The strongest supporting document is an up-to-date BWA (management report) showing that actual profit is running below the prior year. The tax office has discretion in granting the reduction.

Risks of Underpaying

If prepayments fall short of the actual liability, the tax office charges interest of 1.8 % per year on the shortfall (as of 2024). A large catch-up payment in spring can also squeeze liquidity — especially when quarterly VAT payments land at the same time. Overpaying, on the other hand, needlessly ties up working capital. The goal is accurate calibration, which requires current bookkeeping data.

Conclusion

Tax prepayments are a fixed item in the GmbH financial calendar. Knowing the deadlines, understanding the calculation and acting promptly when profits fall are the three levers that prevent expensive surprises. Good GmbH bookkeeping gives you the monthly numbers you need to stay ahead. Norman's tax tools for GmbH and UG automate bookkeeping and keep your liability estimates current year-round.