United States vs Germany
Corporate Tax Comparison
Time of Update: United States: 4/04/2026 / Germany: 4/02/2026
Compare United States and Germany corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
United States vs Germany Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
United States
Germany
General CIT Rate:
Federal corporate income tax: 21%. State CIT ranges from 1% to 10% (although some states do not impose CIT) and is deductible from the federal CIT.
General CIT Rate:
Corporate income tax is 15%, plus a 5.5% solidarity surcharge on the corporate income tax, resulting in a combined rate of 15.825%. Trade tax applies separately and generally ranges from 8.75% to 20.3% depending on the municipality. According to legislative changes adopted in 2025, the corporation tax rate is planned to decrease to 14% in 2028, 13% in 2029, 12% in 2030, 11% in 2031, and 10% from 2032 onward, with the solidarity surcharge continuing to apply.
CIT Return Due Date:
1. April 15th (Federal income tax);
2. Income tax is usually due on the same date as federal income tax, but there are a few cases where the dates are different.
2. Income tax is usually due on the same date as federal income tax, but there are a few cases where the dates are different.
CIT Return Due Date:
July 31st (or extended to the end of February of the following year if the taxpayer instructs a professional tax advisor).
CIT Payment Due Date:
As of the 15th day of the 12th month of the tax year.
CIT Payment Due Date:
As stated in the assessment notice.
CIT Estimated Payment Due Date:
Throughout the year, four equal instalments of estimated tax should be paid on the 15th day of the fourth, sixth, and ninth months of the tax year, and on the 15th day of the first month of the following year (April 15, June 15, September 15, and January 15).
CIT Estimated Payment Due Date:
Quarterly installment payments are due on the 10th day of March, June, September, and December.
Withholding Tax (WHT)
United States
Germany
Resident Withholding Tax (Dividend/Interest/Royalty):
0/10/3
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
30/30/30
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0/15
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
United States
Germany
General Capital Gain Tax Rate:
21% (aligned with the federal CIT rate for corporations)
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate tax rate.
Effective Tax Rate (ETR)
United States
Germany
Composite Effective Average Tax Rate:
22.69
Composite Effective Average Tax Rate:
26.59
Composite Effective Marginal Tax Rate:
7.03
Composite Effective Marginal Tax Rate:
11.00
