March 2008
From 1.1.2008 Germany's corporate income tax rate was reduced to 15%, compared to 25% in 2007.
Thr effective corporate tax rate for 2008, includung 5.5% solidarity tax and minicipal trade tax is 30%- 33%.
Personal income tax rates in 2008 are progressive , up to 45%.
The standard VAT rate is 19%, there is also a reduced rate of 7%.
In 2008 the straight line method is the only method for tax purposes for fixed assets bought after 1.1.2008 .
Germany Value Added Tax 2007
January 2007
From 1.1.2007 the new v.a.t rate in Germany is 19%, compared to 16% in 2006.
Germany Value Added Tax 2006
September 2006
From 1.1.2007 the new standard V.A.T rate in Germany would increase to 19%,replacing the current V.A.T rate of 16%.
Germany Income Tax 2005
January 2005
From 1.1.2005 the new Germany individual income tax rates are 15%-42%.
Germany Income Tax 2004
January 2004
From 1.1.2004 the highest Germany income tax rate for individuals is now 45%(previous rate-48.5%).
LOSSES-From 1.1.2004 losses up to 1 million EURO can be fully offset forward. Losses above 1 million EURO can be offset only up to 60% of the current annual income,the balance to be offset ,under the same terms,in future years.
