Germany Corona Tax ReliefApril 2020
The deadline for filing 2019 annual tax reports and paying the tax due was postponed till June 30,2020 for companies and individuals.
Individuals paying their due taxes and filing reports before May 31, 2020 will get a 5% deduction of their tax dues.
Germany V.A.T. Update 2020February 2020
Starting January 1, 2020 the V.A.T for feminine products was reduced from previous 19% to 7%.
Germany Costa Rica Tax TreatySeptember 2016
The 2014 double tax treaty, DTA ,between the two countries entered into force on August 10, 2016 applying from January 1, 2017.
According to the DTA the tax withholding rates are 5%/15% for dividends, depending on the percentage of shareholding in the paying company, 0%/5% for interest and 10% for royalties.
Germany China Tax TreatyMay 2016
The 2014 double tax treaty, DTA, amending the previous 1985 DTA entered into force on April 5, 2016 applying from January 1, 2017.
The reduced tax withholding rates according to the DTA are 5%/10%/15% for payment of dividend,0%/10% for payment of interest and 6%/10% for royalties.
Germany Israel Tax TreatySeptember 2014
Germany and Israel signed on August 21, 2014 a new double tax treaty, DTA, replacing the previous 1962 DTA which was amended in 1977.
According to the new DTA the tax withholding rate for dividends will be 5%/10%/15% depending on the percentage of holding by the recipient and the nature of the paying company, a real estate investment company or other. The tax withholding rate for interest will be 0%/5%.
Royalties will be taxed only in the residence country of the recipients.
Germany Philippines Tax TreatyOctober 2013
Germany and the Philippinrs signed on September 9, 2013 a new protocol replacing the existing 1983 double tax treaty between the two countries.
According to the tax treaty the tax withholding rate for payments of dividends is 5%/10%/15% depending of the percentage of shareholding by the recipient.
The tax withholding rate for interest is 0%/10%.
For royalties the rate is 10%.
The new tax treaty has yet to be ratified by the parliaments of both countries.
In general double tax treaties between two countries are boosting mutual investments between the countries offering reduced tax withholding rates from payments of dividends, interest and royalties.
The tax treaty often includes an exchange of tax information clause and definition of a permanent establishment for activities carried in the other country.
It also clarifies certain cross border tax issues.
E.g the treaty would define in what country tax is to be paid when a service supplier/consultant from country A provides services in country B.
In some treaties there is a tax credit under certain terms. E.g. an exemption to a consultant from country A of X dollars per each day of staying in country B in order to supply the taxable services.
Germany Spain Tax Treaty Entry into ForceNovember 2012
The double tax treaty, DTA, which was signed in 2011 entered into force on October 18, 2012.
The new DTA which replaces the previous 1996 DTA between the two countries will generally apply from January 1, 2013.
German GDP up 0.2%May 2010
The federal statistical office reported that the GDP in the first quarter of 2010 rose by 0.2% compared to the same quarter in 2009.
The result for the fourth quarter of 2009 growth was amended upward, a rise of 0.2%.
According to the latest calculations the German GDP decreased by 4.9% in 2009.
Germany New Personal Income Tax RateMay 2009
From 1.1.2009 there is a new low 14% income tax rate for individuals, replacing the 2008 rate of 15%.
For single tax payers income of up to EUR 7,834 is tax exempt in 2009. The ceiling will rise to EUR 8,004 in 2010.
Germany Lower Corporate Tax Rate for 2008March 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 2007January 2007
From 1.1.2007 the new v.a.t rate in Germany is 19%, compared to 16% in 2006.
Germany Value Added Tax 2006September 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 2005January 2005
From 1.1.2005 the new Germany individual income tax rates are 15%-42%.
Germany Income Tax 2004January 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.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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