Germany vs United Kingdom
Corporate Tax Comparison
Time of Update: Germany: 4/02/2026 / United Kingdom: 4/02/2026
Compare Germany and United Kingdom corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Germany vs United Kingdom Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Germany
United Kingdom
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.
General CIT Rate:
1. Companies with profits exceeding £250,000 are subject to a main rate of 25% (effective from 1 April 2023).
2. Companies with profits not exceeding £50,000 are subject to a small profits rate of 19% (effective from 1 April 2023).
3. A tapered tax rate applies to profits falling between £50,000 and £250,000.
2. Companies with profits not exceeding £50,000 are subject to a small profits rate of 19% (effective from 1 April 2023).
3. A tapered tax rate applies to profits falling between £50,000 and £250,000.
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 Return Due Date:
Tax returns need to be submitted within one year after the end of the accounting period.
CIT Payment Due Date:
As stated in the assessment notice.
CIT Payment Due Date:
According to the scale of the payment company, there may be differences. For more information, please refer to the UK company summary.
CIT Estimated Payment Due Date:
Quarterly installment payments are due on the 10th day of March, June, September, and December.
CIT Estimated Payment Due Date:
According to the scale of the payment company, there may be differences. For more information, please refer to the UK company summary.
Withholding Tax (WHT)
Germany
United Kingdom
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/0
Resident Withholding Tax (Dividend/Interest/Royalty):
0/20/20
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0/15
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/20/20
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Germany
United Kingdom
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate tax rate.
General Capital Gain Tax Rate:
Capital gains are subject to the regular corporate tax rate.
Effective Tax Rate (ETR)
Germany
United Kingdom
Composite Effective Average Tax Rate:
26.59
Composite Effective Average Tax Rate:
22.55
Composite Effective Marginal Tax Rate:
11.00
Composite Effective Marginal Tax Rate:
11.51
