Unusual taxes in Germany

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Germany has a well-developed social security system. This is possible, in particular, due to the complex system of taxation. I must say that taxes in Germany are among the highest in Europe. In addition to income tax and various social security contributions, there are also unusual taxes paid in Germany. We offer a list of taxes that seem unusual to foreigners who immigrated to Germany.

“Dog” tax

Dogs in Germany are subject to the Hundesteuer or “dog tax”, which varies by state and is usually levied on dog owners once a year. This deduction brings a lot of money to local budgets – last year it brought in 11 million euros in Berlin alone. Sanctions are applied to people who refuse to pay for a dog, up to and including the confiscation of the pet.

Church tax

One of the biggest surprises for expats living in Germany is not only that there is a church tax, but that they already pay it. Paying church tax is the default option, with all potential taxpayers not wishing to make this deduction having to “waive” it when filling out their Anmeldung (address registration) or tax return. If you don’t notice the lines “KS” (Kirchensteuer) on your tax form, you can pay hundreds of euros a year to maintain churches.

If you have already paid this tax but do not want to continue, you need to go to your local Standesamt or Amtsgericht office and waive the deductions in person.

By the way, the Church tax can be levied by religious communities recognized by one or another federal state as a “public law company”. At present, some Muslim communities also have this status in Germany. However, they do not collect church tax from their members. Other communities do not have this status and therefore cannot demand payment from their followers. That is why Muslims in Germany are not required to pay church tax.

Tax on bribes

Although it is no longer reflected in the ledgers, bribes were taxed under certain circumstances in Germany until 1999. Although this exception was rarely used, a person who paid a bribe and sought to deduct it could do so if he explained the purpose of the bribe and provided the names of all persons involved.

Renewable energy tax

Germany leads the world in renewable energy production, so much so that it often sells “clean energy” to neighboring countries. While this required significant investment, the deployment of renewable energy infrastructure was driven by a combination of surcharges and taxes that passed a portion of the cost on to the consumer.

Since Germans are generally willing to pay a little more on their electricity bills if the money is invested in green energy, the plan has been successful. The surcharge alone attracted 26.6 billion euros to the budget last year. Recently, new corporate and income taxes have been proposed to further increase investment in clean energy.

Suburban tax deduction

Almost all work-related expenses can be deducted on your tax return. For example, if you bought home equipment that you use for work purposes.

There is also a commuter tax credit that allows you to claim 0.30 cents for every kilometer between you and work. Whether you are driving or using public transport. You can claim up to 4,500 euros per year, but be sure to keep your transport or gasoline receipts.

A tax on loneliness

Single people in Germany pay more taxes because there are certain benefits for families with children. However, in 2018, German Health Minister Jens Spahn tried to go one step further with a new tax, stating that single people should be “ready to make a greater financial contribution to the sustainability of the system” to make it “intergenerational fair”. “.

The proposal for a “loneliness tax” was rejected by Spahn’s political opponents. Although previously single men in Germany were required to pay the so-called “bachelor” tax, it was later abolished.

Read more: https://taxtaxation.com/uk-taxes/