The leader of Germany’s Social Democrat party (SPD) has backed proposals to adjust the personal income tax brackets in an effort to undo stealth taxation that has resulted from the effects of inflation. This is considered to have unfairly hit middle-income earners. The SPD put forward the idea in the run up to the September 2013 elections and proposed financing the measure through a hike in the top rate of income tax. The SPD is now in a coalition Government with the Christian Democratic Union (CDU), but will still only agree to tax relief for middle-income earners provided that the country’s top earners face higher taxes.
Related Posts
Germany introduces revised rules for interest deduction limitations
April 02, 2025
The German Ministry of Finance has released updated guidelines on the interest deduction limits, known as the "interest barrier." on 24 March 2025. These changes follow amendments made by the Secondary Credit Market Promotion Act to Sections 4h
Read More
Switzerland: Parliament approves amending protocol to tax treaty with Germany
March 27, 2025
The Swiss parliament granted final approval to the amending protocol to the 1971 income and capital tax treaty with Germany on 21 March 2025. The protocol complies with BEPS standards and introduces additional provisions to clarify how national
Read More Germany updates guidance on VAT rules for small businesses
March 27, 2025
The German Ministry of Finance has updated its guidance on special VAT rules for small businesses on 18 March 2025. These changes follow the approval, in December 2024, of the increase in VAT exemption thresholds to take effect from 1 January
Read More
Germany updates group parent notification form for Pillar Two minimum tax groups
March 21, 2025
The German Ministry of Finance released a letter on 11 March 2025, introducing an updated official template and instructions for the group parent notification form. This form is required to be submitted by the parent entity of German minimum tax
Read More Germany updates CbC Report exchange list, adds four new jurisdictions
March 14, 2025
The German Official Gazette (Bundesgesetzblatt) No. 64 published the Seventh Regulation Amending the Country-by-Country (CbC) Report Extension Regulation on 11 March 2025. This update revises the list of jurisdictions participating in the
Read More Germany, Montenegro finalise tax treaty negotiations
March 11, 2025
Germany and Montenegro finalised negotiations by initialling an income and capital tax treaty on 10 February 2025. Earlier, First round of discussions regarding an income and capital tax treaty between Germany and Montenegro concluded in
Read More