there are many Types of taxes in Germany that differ according to source, so the taxes in Germany have many names according to the source which comes from. the taxes in Germany are one of the income sources for the country from individuals and companies contributing to building the country, so the government put a certain rate for all institutions.
Types of taxes in Germany
GERMANY contains a variety of taxes yearly which have been collected by the government from individuals and companies:
Einkomensteuer
- this type is called income tax and includes all types of income
- this type of tax is increasing the tax meaning the more earn, the more tax rate
- all different brackets pay this tax
- this tax ranges from 0 to 40 %
Körperschaftsteuer
- this tax is called corporate tax and depends on profits and entities in Germany
- this tax range around 15%
Kapitalertragsteuer
- this tax is called capital tax which comes from sales
- the range of tax depends on the type of sales and how much time it takes for the sale.
- This type of tax is taken from individuals and companies.
- The main in this type of tax is profit which achieves by the organization.
- The more profit in any organization, the more increase in this tax.
Solidaritätszuschlag
- It’s known as an additional tax which combines income, gains and profits in Germany.
- This tax is known as the solidarity surcharge which reaches 5.5% of tax quantity including a tax bill.
- It began this tax in 1991 for the economy of Germany and the costs of reunification in Germany too.
- So it is one of the most important in Germany because of its economic benefits.
Erbschaftsteuer
- One of the important taxes in Germany and known as the inheritance tax
- This tax is levied on the property of a will from a Dead person and the value of assets
- The rate of will is based on the relationship between the Dead person and the heir.
- The range of this tax is from 7% to 50%
- The person which delivers the inheritance should pay this tax
- There is the person responsible for this tax is called an executor.
Grunderwerbsteuer
- This tax is known as real estate transfer tax meaning based on real estate transfer like belongings for a person.
- The rate depends on the Germany States and ranges from 3.5% to 6.5%
- The organization responsible for this tax is known as the local tax authority
- The person who pays this tax is the buyer or heir.
- The tax depends on the purchase price or value of the market if it was higher.
the importance of taxes in Germany
the importance of taxes lies in the benefits can the country achieve through these taxes:
the economy field: the country can build relationships with other countries to widen country limits leading to many benefits.
the medical field: it will manage to provide medical instruments and establish new hospitals and rebuild old hospitals.
the agricultural field: it will manage by planting all crops which need the country to decline imports.
the policy field: building a strong army with well-developed tools for protecting the country.
the education field: by building many modern schools, developing educational subjects, reestablishing old schools and raising educational skills and abilities.
the welfare field: building gardens, zoos, museums, restaurants, coffee shops, clubs and gyms.
in conclusion, taxes are an important source for the development and welfare of a country in all fields like medicine, agriculture, investment, economy, policies and other fields. the government use this money in building factories, companies and hospitals in addition to rebuilding old structures plus developing all other fields in different ways.