Daily Management Review

German authorities prepare €42.5B tax exemptions until 2024


Ministry of Finance of the Federal Republic of Germany is developing a bill to reduce the tax burden for a total of €42.5 billion inclusive until 2024, the Handelsblatt publication reports with reference to the bill that fell into the disposal of the publication.

Marco Verch via flickr
Marco Verch via flickr
According to the publication, the bill suggests that next year the total amount of tax breaks will be about €7 billion, then it will increase to €11-12 billion per year.

By January 1, 2021, the government will increase the tax-free minimum from €9,408 to €9,696. In addition, the revenue bar, which is taxed at the highest tax rate of 42%, will increase from today's €57,052 to €57,919. A special maximum tax rate of 45% will apply to incomes above €274,613. This year, this tax was applied to income from €270 501.

Also, from January 1, 2021, payments for children will increase by another €15 per child. “At the same time, accordingly, the tax incentive for families with children will increase,” the bill says.

As expected, the law on tax breaks will be adopted by the Cabinet on July 29.

source: handelsblatt.com