As the tax burden on incorporated companies in Germany is relatively high in international comparision, the Federal Government wants to reduce the nominal tax rates for these companies, where possible without resulting in a long-term net relief. The tax rate reduction is to be financed by...

One important aspect of the 2008 reform of business taxation is the interest barrier. It puts a limit on the amount of interest expenses deductible from earnings, thus reducing the tax bill. Therefore, it aims to prevent tax substrate from fleeing to other countries. This article starts with a...

German municipalities receive almost all of their tax revenue from four different taxes: real property tax, trade tax and shares of value added tax and income tax. Compared with the three latter taxes, real property tax meets the requirements of a rational local tax system in the best way. For...

An important part of the 2008 reform of business taxation is the final withholding tax of 25% to be introduced from 2009 on all capital income – interest, dividends and proceeds from pri-vate sales – coupled with the parallel abolition of the so-called half-income method for divi-dend...

German corporate companies are taxed with a federal corporation tax and with a local business tax. The latter has a similar, but broader tax base (including e. g. 25 % of interest payments) and its tax rate is set independently by every municipality including the so called city-states...

0ne of the federal government's most important projects is its reform of business taxation, planned for 2008. The key elements of this reform, published in summer 2006, provide for a reduction in the nominal tax burden on corporations from 38.65 % to 29.8 %. In return, an aspect of German...