Field help: (2024) Was the business year shorter than 12 months?

Select "yes" here if the information about the net income method (Einnahmenüberschussrechnung) does not refer to the whole calendar year 2024 but to a short business year (Rumpfwirtschaftsjahr).

The period for determining profits is normally the business year. The business year basically covers a period of 12 months and generally corresponds to the calendar year. For small entrepreneurs and freelancers this is always the case (sect. 4a Income Tax Act (EStG)).

A different business year is when the business year as the profit determination period is not the same as the calendar year.

• Farmers and foresters always have a different business year, in principle from 1 July to 30 June of the following year (sect. 4a para. 1 no. 1 Income Tax Act (EStG) and sect. 8c Income Tax Ordinance (EStDV)).
• For traders, the business year differs from the calendar year only in exceptional cases: Tradesmen who are registered in the commercial register may, in agreement with the tax office, change the business year to a period that differs from the calendar year (section 4a, paragraph 1, no. 2 Income Tax Act (EStG)).

Only under certain conditions may the business year cover a period of less than twelve months. This is referred to as a short business year (sect. 8b para. 1 Income Tax Ordinance (EStDV)). This is possible if

• a business is opened, acquired, abandoned or sold, or
• a taxpayer changes from regular trades on one particular day to regular trades on another particular day. In general, this change may only be made with the agreement of the tax office.