The tax system of Germany. Principles and main types of payments

Each country has its own specific principles of taxation, which are based on certain rules. The tax system of Germany in this respect, in the opinion of some experts, is the most reasonable and "humane".

I would like to note that this text will only outline the main principles of the tax system, as well as the main types of taxes. Formulas for calculation and complex coefficients are subject to more extensive research. Our goal is to get a general idea.

The modern tax system of Germany originated after the Second World War in the territory of Germany and now exists practically unchanged, with the exception of a number of amendments that were introduced to it in accordance with 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 1940s by Ludwig Erhard. It was he who voiced the basic principles that should guide (and guided) the German tax system. If we do not delve into economic and other specific terms, they are the following:

• Any tax in Germany, as well as the funds necessary to collect it, must be an amount that is minimized. The amount of tax, in this case, should correspond to the value of services rendered by the state to its citizen.
• Taxes should aim at a proportionate distribution of profits, can not impede healthy competition.
• The system of levying taxes should exclude double taxation and conform to the structural policy.
• Taxation must take into account the interests of private life of citizens.

What taxes are there?

Germany in the field of taxation is focused on a number of deductions that can be divided:

• In the direction - federal, municipal, land and collective taxes. A separate place in this category is the church tax.
• Taxes on property - from income (income on wages and capital turnover), corporate, trade and church, as well as a joint mark-up.
• Taxes from property - actually on property, on land, on inheritance, trade and church.
• Commodity tax deductions - turnover tax, car, fire protection, land purchase, gambling houses and other entertainment facilities, lotteries and races, for insurance.
• Customs duties and fees for consumer goods - for import and export of goods, a range of alcoholic beverages, semi-finished products, mineral oils, coffee.

The German tax system imposes taxes on its citizens in virtually all sectors of their lives. As the data of various analytical agencies show, the share of tax revenues in this country varies within the range of 80-89% (the figures are ambiguous, in view of the various methods for estimating the parameters). To say that this system is impeccable or, on the contrary, has a number of shortcomings, 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 of Germany.