programme eurosocial fiscalité stratégies fiscales en lien avec la cohésion sociale german tax...

Bundesministerium der Finanzen

Berlin

Programme EUROsociAL FiscalitéStratégies fiscales en lien avec la cohésion

sociale

German tax system and socioeconomic aspects of taxation in Germany

Bärbel Schneider

Federal Ministry of Finance - Berlin

Division I A 5


Berlin

Part 1

The german tax system

- general overview -


Berlin

Classification of taxes and tax revenue (year 2006)

% m. €

1. Taxes on income and property 48,3 224.888

1.1. Taxes on income 38,7 180.293Income tax (including wages tax) 28,7 133.550Capital yields tax and interest income deduction 3,8 17.545Corporation tax 4,0 18.650Solidarity surcharge 2,3 10.548

1.2. Taxes on property 2,2 10.395Real property tax 2,2 10.375

1.3. Taxes on going business enterprises 7,3 34.200Trade tax 7,3 34.200

2. Taxes on transfer of property 2,0 9.3022.1. Inheritance and gift tax 0,9 4.1622.2. Real property transfer tax 1,1 5.140

3. Consumption taxes and excise duties 49,7 231.3093.1. Value-added tax 30,5 142.2003.2. Insurance tax 1,9 8.7503.3. Motor vehicle tax 1,9 9.0003.4. Mineral oil duty 8,4 39.3003.8. Tobacco duty 3,2 14.7003.9. Other duties and taxes on consumption 3,7 17.359

I. Direct taxes (1.+2.1) 49,2 229.050II. Indirect taxes (2.+3. ohne 2.1) 50,8 236.449III. Total tax revenue 100,0 465.499

83%


Berlin

Assignment of revenue (1)

Federal taxes•Insurance tax•Solidarity surcharge•Excise and Customs duties

Länder taxes•Inheritance tax•Motor vehicle tax•Real property transfer tax•other taxes and beer duty

Municipal taxes•Real property tax•trade tax•other minor taxes

Joint taxes•Income tax•Corporation tax•VAT•Capital yields tax•Interest income deduction


Berlin

Assignment of revenue (2)Joint taxes - ratio of distribution

Type of tax Federation Länder Municipalities

Income tax 42,5 % 42,5 % 15 %

Corporation tax 50,0 % 50,0 5 -

VAT 53,1 % 44,8 % 2,08 %

Capital yields tax 50,0 % 50,0 % -

Interest income deduction

44,0 % 44,0 % 12,0 %


Berlin

Assignment of revenue (3)

Level of government Revenue 2006 in m€ Revenue 2006 in %

Federation 194.206 41,72

Länder 185.827 39,92

Municipalities 64.146 13,78

EU 21.320 4,58

Total 465.499 100

Taxation ratio (percentage of nominal GDP): 22,0 %Taxation and social security ratio (% GDP): 39,7 %


Berlin

Organisation of the revenue administration

Federal Ministry of Finance Land Minsters (Senators) of Finance

Regional Finance Offices

Federal Customs and Excise Directorate Land Tax Directorate

Customs Offices Tax Offices


Berlin

Part 2

Socioeconomic aspects of the german

tax system


Berlin

System der sozialen Sicherung in Deutschland

• Finanzierung durch gesetzliche Pflicht-

versicherung: keine Steuerfinanzierung – grundsätzlich hälftige Beträge der

Arbeitnehmer und Arbeitgeber– ergänzend: Bundeszuschüsse


Berlin

Sozialversicherung – Kennzahlen (2005)Beitragseinnahmen

-absolut

-in % des Arbeitslohns

Bundeszuschuss Ausgaben

Rentenversicherung 169 Mrd. €

19,5 %

62 Mrd. € 236 Mrd. €

Krankenversicherung 143 Mrd. €

14,3 %

2,5 Mrd. € 144 Mrd. €

Arbeitslosen-

versicherung

50 Mrd. €

6,5 %

4 Mrd. € 54 Mrd. €

Pflegeversicherung 17,5 Mrd. €

1,7 %

- 17,9 Mrd. €

Gesamte

Sozialversicherung

380 Mrd. €

42 %

68,5 Mrd. € 452 Mrd. €


Berlin

Marginal and Average tax burden 1999, 2001, 2004 und 2005

0

10

20

30

40

50

60

0 10 20 30 40 50 60Taxable income in 1.000 €

inc

om

e t

ax

bu

rde

n in

%

Grenz 99Durchschn.99Grenz 01Durchschn.01Grenz 04Durchschn.04Grenz 05Durchschn.05

marginal burden

average burden

19,9

42

53

23,9

48,5

1615

45

Developement of income tax rate 1999-2005


Berlin

Effect of splitting method 2005 (difference between basic table and splitting table)

0

5

10

15

20

25

30

35

40

0 20 40 60 80 100 120Taxable income in T€

inc

om

e t

ax

bu

rde

n in

T €

Eink.st.(Grundt.)

Eink.st.(Splitt.)

Splittingwirk.

maximum: 7.914 €


Berlin

Disposable income of average employees (1)

Gross employee´s taxes and

wage Wages tax Solidarity total social security disposable

Year per year surcharge tax total income

€ € % € % € % € % € % € %

1 2 3 4 5 6 7 8 9 10 11 12 13 14

1960 3.144 322 10,2 0 0,0 322 10,2 383 12,2 705 22,4 2.439 77,61970 7.076 1.059 15,0 0 0,0 1.059 15,0 937 13,2 1.996 28,2 5.080 71,81980 15.180 2.570 16,9 0 0,0 2.570 16,9 2.459 16,2 5.029 33,1 10.151 66,91990 21.479 3.604 16,8 0 0,0 3.604 16,8 3.812 17,7 7.416 34,5 14.063 65,51995 24.031 4.276 17,8 321 1,3 4.597 19,1 4.722 19,6 9.319 38,8 14.712 61,22000 25.479 4.332 17,0 238 0,9 4.570 17,9 5.249 20,6 9.819 38,5 15.660 61,52006 26.536 3.821 14,4 210 0,8 4.031 15,2 5.586 21,1 9.617 36,2 16.919 63,8

unmarried employee, no children, younger than 50 years

contribution to

social security


Berlin

Disposable income of average employees (2)

Gross employee´s taxes and

wage Wages tax Solidarity total social security child disposable Year per year surcharge tax total benefit income

€ € % € % € % € % € % € € %1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1960 3.144 0 0,0 0 0,0 0 0,0 383 12,2 383 12,2 0 2.761 87,81970 7.076 554 7,8 0 0,0 554 7,8 937 13,2 1.491 21,1 51 5.636 79,61980 15.180 1.566 10,3 0 0,0 1.566 10,3 2.459 16,2 4.025 26,5 920 12.075 79,51990 21.479 1.486 6,9 0 0,0 1.486 6,9 3.812 17,7 5.298 24,7 1.012 17.193 80,01995 24.031 1.326 5,5 0 0,0 1.326 5,5 4.722 19,6 6.048 25,2 1.227 19.210 79,92000 25.479 1.382 5,4 0 0,0 1.382 5,4 5.249 20,6 6.631 26,0 3.313 22.161 87,02006 26.536 914 3,4 0 0,0 914 3,4 5.586 21,1 6.500 24,5 3.696 23.732 89,4

married employee, two children and housewife

contribution tosocial security


Berlin

Who pays income tax and to what extend

income tax revenue

disposable income

5 89.000 45,7 25,210 67.400 57,2 35,615 57.200 65,0 44,020 50.300 71,2 51,525 45.000 76,3 58,130 40.200 80,6 64,135 36.100 84,4 69,540 32.500 87,9 74,245 29.450 91,0 78,650 26.600 93,7 82,5

income tax revenue

disposable income

20 8.100 - 1,625 11.050 0,1 3,330 14.350 0,4 5,435 17.600 1,1 7,940 20.800 2,3 10,845 23.750 4,0 14,050 26.600 6,3 17,5

cumulative quota in %

cumulative quota in %

upper ... % of taxable persons

taxable income from ... €

lower... % of taxable persons

taxable income up to ... €


Berlin

Benefits to families (1)1998 1999 2000 2001 2002 2003 2004 2005 2006

number of children - 1. child 10.656 10.797 10.826 10.961 11.023 11.057 11.108 11.099 11.102 - 2. children 5.505 5.565 5.563 5.607 5.604 5.569 5.569 5.565 5.566 - 3. children 1.460 1.479 1.478 1.486 1.471 1.441 1.428 1.427 1.427 - 4. children and more 491 496 497 499 499 492 488 487 487total numer of children 18.112 18.337 18.364 18.553 18.597 18.559 18.593 18.578 18.582

with child benefit 17.232 17.707 16.864 17.053 16.297 16.159 16.393 16.478 16.482with child allowance 880 630 1.500 1.500 2.300 2.400 2.200 2.100 2.100

1998 1999 2000 2001 2002 2003 2004 2005 2006

25.605 29.501 31.655 32.021 35.950 36.080 36.300 36.200 36.500

child benefit 25.554 29.450 30.939 31.254 34.518 34.444 34.500 34.700 35.000

additional child allowance 51 51 716 767 1.432 1.636 1.800 1.500 1.500

- exemption of subsistence level 14.100 14.500 20.100 19.300 21.900 22.000 21.100 20.500 20.600 - additional subsidy 11.505 15.001 11.555 12.721 14.050 14.080 15.200 15.700 15.900

Million €

Public expenditure of benefits to families

1.000


Berlin

Benefits to families (2)

1998 1999 2000 2001 2002 2003 2004 2005 2006

1st child 112 128 138 138 154 154 154 154 154 2nd child 112 128 138 138 154 154 154 154 154 3rd child 153 153 153 153 154 154 154 154 154 4th child 179 179 179 179 179 179 179 179 179

Child allowances - child allowance 3.534 3.534 3.534 3.534 3.648 3.648 3.648 3.648 3.648 - additional allowance - - 1.546 1.546 2.160 2.160 2.160 2.160 2.160 for educational advancement total 3.534 3.534 5.080 5.080 5.808 5.808 5.808 5.808 5.808

in €

Amount of child benifit per child


Berlin

Development of income tax rates from 1998 up to 2007

rate '98 rate '99 rate '00 rate '01 rate '02 rate '04 rate '05 rate '07applicable

from... 01.01.98 01.01.99 01.01.00 01.01.01 01.01.02 01.01.04 01.01.05 01.01.07up to ... 31.12.98 31.12.99 31.12.00 31.12.01 31.12.03 31.12.04 31.12.06 31.12.07

Basic personal allowance € 6.322 6.681 6.902 7.206 7.235 7.664 7.664 7.664

basic tax rate % 25,9 23,9 22,9 19,9 19,9 16,0 15,0 15,0

Linear-progressive zone from ... € 6.323 6.682 6.902 7.206 7.236 7.665 7.665 7.665

up to ... € 61.376 61.376 58.643 54.998 55.007 52.151 52.151 52.151

tax rate from ... % 25,9 23,9 22,9 19,9 19,9 16,0 15,0 15,0up t .. . % 53,0 53,0 51,0 48,5 48,5 45,0 42,0 42,0

First upper proportional zone from .....€ 61.377 61.377 58.643 54.999 55.008 52.152 52.152 52.152

tax rate % 53,0 53,0 51,0 48,5 48,5 45,0 42,0 42,0

Second upper proportional zone from … € - - - - - - - 250.001 1)

tax rate % - - - - - - - 45,0

For notice:special higest rate for trade or business

tax rate from ... € 51.271 47.931 43.375 - - - - -

% 47,0 45,0 43,0 - - - - -

programme eurosocial fiscalité stratégies fiscales en lien avec la cohésion sociale german tax...

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