A4: Multimedia presentation about the Tax System in each country

1. The German tax system

2. Structure
• 1. Personal Rent Tax
1.1. Taxable event and definition
1.2. Tax exemption
1.3. Tax burden
1.4. Tax classes
• 2. Added Value Tax
2.1. Taxable event and defintion
2.2. Tax exemption
2.3. Tax burden
2.4. Concept

3. 1. Personal Rent Tax
• 1.1. Taxable event and definition:
- Determination base of the Personal Rent Tax is
the taxable income
- This is the sum of all earnings after subtracting
all exemptions
• 1.2. Tax exemptions:
- income < 8652,- €
- many perks and exemptions

4. 1. Personal Rent Tax
• 1.3. Tax burden:
- different tax classes have different rates
- higher income  tax rate increases
Total income
- perks and tax exemptions
= taxable amount
× rate of your tax class
= Personal Rent Tax

5. 1.4. Tax classes
Total income Personal Rent Tax
Until 8,652 €: PRT = 0.00 %
0.00 €
From 8,653 € to 13,669 €: PRT = 0.00 % - 6.96%
0.00 € - 952.00 €
From 13,670 € to 53,665 €: PRT = 7.00 % - 27.81 %
959.00 € - 14,922.97 €
From 53,666 € to 254,446 €: PRT = 27.81 % - 40.83 %
14,922.97 € - 103,889.01 €
Higher than 254,446 €: Maximum PRT is 45.00 %

6. 2. Added Value Tax
• 2.1. Taxable event and definition:
- also called „turnover tax“
- taxable events are all deliveries and services
- only the consumer actually pays the tax when
acquiring goods because
- companies get the Added Value Tax refunded as
„pre-tax“ for goods they sell on or manufacture

7. 2. Added Value Tax
• 2.2. Tax exemptions:
- heritages, sickness benefits, loan revenues,
medical services, exports to EU-companies
• 2.3. Tax burden:
- calculated from all turnovers, services, deliveries
- common rate: 19 %
- reduced rate: 7 % (groceries, non-alcoholic
beverages, books, newspapers)

8. 2. Added Value Tax
• 2.4. Concept
ConsumerEntrepreneur Entrepreneur
Finance authority
Raw material End product
Added Value TaxAdded Value Tax

9. Sources
http://www.bpb.de/izpb/147080/unser-steuersystem?p=all
http://www.bpb.de/nachschlagen/lexika/lexikon-der-
wirtschaft/19161/einkommensteuer
https://www.bmf-steuerrechner.de/ekst/ekst.jsp
http://www.bpb.de/nachschlagen/lexika/lexikon-der-
wirtschaft/20891/umsatzsteuer
http://i.huffpost.com/gen/1414652/images/o-STEUERN-facebook.jpg
http://cdn.agrarverlag.at/bz/mmedia/image//2012.12.11/13552237769523_1.
png?1355223779