Municipal Taxes

Company contribution to local finances guarantees the development and maintenance of up-to-date infrastructure as well as of a positive economic development in the region.

An important financing source for the cities and towns are the local tariffs, which are split between taxes, contributions, and fees.

• The commercial tax is calculated according to the trade tax rate and a municipal multiplier (a so-called „Hebesatz“). The rate of 3.5% is standard across Germany and independent of the legal form of the company. The amount due is based on the confirmed corporate tax rate and then multiplied by the municipal „Hebesatz“ rate. In the Region of Aachen, the average commercial tax rate for “Hebesatz” is 431% with a range from 399% up to 500% (2013). Actual Information and a good comparison on commercial taxes for the Region of Aachen are available through the commercial calculator at the Chamber of Industry and Commerce (Gewerbesteuer-Vergleichsrechner).
• The value of a property forms the basis of the property tax. It consists of Property Tax A for companies in agriculture and forestry, and Property Tax B for any other property. The rate in the Region of Aachen is 6 per thousand (Property Tax A) or 3.5% of the commercial land. The local „Hebesatz“is on average 455% (B), whereas the lowest rate for commercially used land is 391%, and the highest is 610% (2013). The property tax is typically paid by the owner. A proportional levy can be passed on to the tenants through a rental agreement.

In addition to these taxes, other public fees must be considered, such as fees for street cleaning, winter service, and sewage. Finally, the municipality may also charge other fees, such as a developmental / improvement fee. If the municipality improves the infrastructure in an area with public roads, and supply and disposal facilities, these costs must be paid by the owners of the affected properties.