This tax applies to the profits earned by a business involved in a trade and its working capital.
Thus, it does not matter who owns the business, who receives the profits from the business, or what the personal circumstances of the business owner are. The trade tax thus differs from the income tax and the corporate income tax in that it is levied irrespective of a person's productive capacity. Rather, it is a tax on a specific business.
Every business registered as a trade and operated within Germany is subject to the trade tax. The tax is calculated based on the taxable trade income.
(Source: Federal Statistics Office (Statistisches Bundesamt))
Trade tax collection multiplier in Berlin
Since January 1st, 1999, the multiplier used to calculate the trade tax in Berlin has remained constant at 410 percentage points, which is relatively low compared to other major cities in Germany.
(Source: Association of German Chambers of Industry and Commerce (Deutscher Industrie- und Handelskammertag - DIHK), 2013)