Each country has its own special principles of taxation, based on certain rules. The German tax system in this regard, according to some experts, is the most reasonable and "human".
I would like to note that this text will set out only the basic principles of the tax system, as well as the main types of taxes. Calculation formulas and complex coefficients are the subject of a larger study. Our goal is to get a general idea.
The modern tax system in Germany originated after the Second World War in Germany and now exists almost unchanged, with the exception of a number of amendments that were made to it taking into account the requirements of the existing reality.
As can be read in most sources, the foundations of the system were laid by the end of the 40s of the last century by Ludwig Erhard. It was he who voiced the basic principles by which the tax system of Germany should be guided (and guided). If you do not delve into economic and other specific terms, then they are as follows:
- Any tax in Germany, as well as the funds necessary for its collection, must be an amount that is minimized. The amount of tax, in this case, must correspond to the amount of services provided by the state to its citizen.
- Taxes should have as their goal a proportionate distribution of profits, and they cannot impede healthy competition.
- The tax system should exclude double taxation and be consistent with structural policies.
- Taxation should take into account the interests of private life of citizens.
What taxes exist
Germany in the field of taxation is focused on a number of deductions, which can be divided:
- In the direction - federal, municipal, land and collective taxes. A separate place in this category is church tax.
- Property taxes - on income (income on salaries and on turnover from capital), corporate, trade and church, as well as a joint allowance.
- Property taxes - actually on property, on land, on inheritance, fishing and church.
- Commodity tax deductions - sales tax, car tax, fire protection, land purchase, from gambling houses and other types of entertainment facilities, lotteries and horse racing, insurance.
- Customs duties and duties on consumer goods - on the import and export of goods, a number of alcoholic beverages, semi-finished products, mineral oils, coffee.
The German tax system taxes its citizens in almost all sectors of their lives. As the data of various analytical agencies show, the share of tax revenues in this country ranges from 80-89% (the figures are ambiguous, due to different methods of estimating parameters). To say that this system is flawless or, on the contrary, has a number of drawbacks, only residents of the state and people who are qualified specialists in this field are entitled. In this text - only a brief description of a small part of the financial system in Germany.