German industrial production

Investment Analysis Clubs Macro Economic Trends and Risks
1

…peaked eight years ago.

DB2

1 Like
2

Peaked with a higher corporate tax rate.

Google AI

In 2017, the German corporate tax rate was a combination of federal corporate income tax and a municipal trade tax, resulting in an average combined rate of approximately 30%.

The breakdown of the tax rate was as follows:

  • Federal Corporate Income Tax (Körperschaftsteuer): A flat rate of 15%.
  • Solidarity Surcharge (Solidaritätszuschlag): A surcharge of 5.5% on the federal corporate income tax, which made the effective federal rate approximately 15.825% (15% * 1.055).
  • Municipal Trade Tax (Gewerbesteuer): This rate varied by municipality, typically ranging from 14% to 17% in major cities, but could be between 7% and 20.3%. The average rate for this component was around 14%.

Therefore, the total, combined corporate tax burden on corporate profits was typically between 23% and 33%, averaging around 30% nationwide.

2 Likes
3

Loss of low cost Russian natural gas has to be a major burden on industrial production. German plants can no longer compete in global markets. Major adjustment needed to survive. Many expected to close.

2 Likes
4

Higher corporate taxes would help them survive.

Germany won’t raise the taxes.

1 Like