Programme EUROsociAL Fiscalité Stratégies fiscales en lien avec la cohésion sociale German tax system and socioeconomic aspects of taxation in Germany Bärbel Schneider Federal Ministry of Finance - Berlin Division I A 5

Part 1 The german tax system - general overview -

Classification of taxes and tax revenue (year 2006) 83%

Assignment of revenue (1) Federal taxes Insurance tax Solidarity surcharge Excise and Customs duties Länder taxes Inheritance tax Motor vehicle tax Real property transfer tax other taxes and beer duty Municipal taxes Real property tax trade tax other minor taxes Joint taxes Income tax Corporation tax VAT Capital yields tax Interest income deduction

Assignment of revenue (2) Joint taxes - ratio of distribution Type of taxFederationLänderMunicipalities Income tax42,5 % 15 % Corporation tax50,0 %50,0 5- VAT53,1 %44,8 %2,08 % Capital yields tax50,0 % - Interest income deduction 44,0 % 12,0 %

Assignment of revenue (3) Level of governmentRevenue 2006 in mRevenue 2006 in % Federation ,72 Länder ,92 Municipalities ,78 EU ,58 Total Taxation ratio (percentage of nominal GDP): 22,0 % Taxation and social security ratio (% GDP): 39,7 %

Organisation of the revenue administration Federal Ministry of Finance Land Minsters (Senators) of Finance Regional Finance Offices Federal Customs and Excise Directorate Land Tax Directorate Customs Offices Tax Offices

Part 2 Socioeconomic aspects of the german tax system

System der sozialen Sicherung in Deutschland Finanzierung durch gesetzliche Pflicht- versicherung: keine Steuerfinanzierung –grundsätzlich hälftige Beträge der Arbeitnehmer und Arbeitgeber –ergänzend: Bundeszuschüsse

Sozialversicherung – Kennzahlen (2005) Beitragseinnahmen -absolut -in % des Arbeitslohns BundeszuschussAusgaben Rentenversicherung169 Mrd. 19,5 % 62 Mrd. 236 Mrd. Krankenversicherung143 Mrd. 14,3 % 2,5 Mrd. 144 Mrd. Arbeitslosen- versicherung 50 Mrd. 6,5 % 4 Mrd. 54 Mrd. Pflegeversicherung17,5 Mrd. 1,7 % -17,9 Mrd. Gesamte Sozialversicherung 380 Mrd. 42 % 68,5 Mrd. 452 Mrd.

Developement of income tax rate

Disposable income of average employees (1)

Disposable income of average employees (2)

Who pays income tax and to what extend

Benefits to families (1)

Benefits to families (2)

Development of income tax rates from 1998 up to 2007