Summary One 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...

Summary 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...

The 2008 Corporate Tax Reform Law was passed by the parliament in July 2007. It also reforms the trade tax. This applies both to the rate and to the tax base. In future, not only the interest on permanent debt will be included in the tax base, but also all interest paid as well as the financing...

With the 2008 reform of business taxation (Unternehmensteuerreform 2008) a preferential treatment of retained earnings for non-incorporated companies was introduced: Earnings may be retained at a preferential tax rate (29.8%) and will be subjected to supplementary tax (26.4%) when they will be...

Local authorities charge supply companies with concession dues on gas, water and electricity (Konzessionsabgaben), which are similar to some local taxes (local business tax, real property tax). These taxes have already been included in the fiscal equalization system and in the future concession...

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

In the German system of fiscal equalization Länder (States) with tax revenue below the average get payments from the Länder above the average. The difference between the average and the own tax revenue per capita will be compensated up to 75%. To prevent Länder from getting payments form...

Das Bundesverfassungsgericht hat in der Vergangenheit Urteile zum föderalen Finanzausgleich in Deutschland gefällt. Eine wichtige Frage war, welche Steuern Teil der Umverteilung im föderalen Finanzausgleich sein sollten. Das Gericht hat Kriterien entwickelt, anhand derer eine Entscheidung...