Tax law in Germany
What is the name of Germany's main tax authority?
The Finanzamt or taxation office
What does "taxable income" mean?
Income subject to taxation after deductions.
What is the standard VAT rate in Germany?
19%
What is Germany's corporate tax called?
Koerperschaftsteuer or corporate tax
What is the German term for Church tax?
Kirchensteuer
Which German law governs income tax?
The Einkommensteuergesetzt (EStG) Income Tax law
What is the amount subtracted from taxable income called?
deduction or a deductable
What is the German term for VAT?
Mehrwertsteuer
What is the corporate tax rate in Germany?
15% (plus solidarity surcharge)
Church tax is based on which other tax in Germany?
Income tax
What type of tax system does Germany use: progressive or flat?
Progressive
Define "withholding tax."
Tax taken directly from your wages before payment.
Who ultimately bears the cost of VAT?
The end consumer.
What local tax must businesses also pay?
Gewerbesteuer or Trade Tax
What percentage is church tax typically?
8 - 9% of income tax
What is the German term for the annual tax return filed by inividuals?
Steuererklärung
Tax return
What do you call the official calculation, from the tax office, of tax owed?
An assessment
What is the reduced VAT rate?
7%
What determines the Gewerbesteuer mulitplier?
The municipality or Gemeinde
Who collects church tax in most German states?
The Finanzamt or Tax office
Which court handles tax disputes in Germany?
The Finanzgericht. Fiscal court
What does "liability" mean in tax context?
The amount a taxpayer legally owes.
What is an "input tax credit"?
A deduction businesses take for VAT paid on purchases.
What are "retained earnings"?
Profits kept in the company rather than distributed.
How can somebody stop paying church tax?
If they formally leave the church or Kirchenaustritt