Division of German Tax Revenues And The Financial ... · 21.11.2006 EUROsociAL – Workshop...

21.11.2006 EUROsociAL – Workshop Brasilia1

Division of German Tax RevenuesAnd

The Financial EqualizationScheme Between The

Federal Government AndThe Länder

Andrea GebauerGerman Federal Ministry of Finance


MunicipalitiesMunicipalities

Joint taxesJoint taxesCorporate Income Tax(Bund 50 %, Länder 50 %, Gemeinden - %)

Income Tax(Bund 42,5 %, Länder 42,5 %, Gemeinden 15 %)

VAT(Bund 52,01 %, Länder 45,91 %, Gemeinden 2,08 %)

Taxes accruing to the Taxes accruing to the LänderLänder

Inheritance and gift taxReal property transfer taxMotor vehicle taxTax on betting and lotteriesFire protection tax

Local TaxesLocal TaxesTrade TaxReal property taxDog TaxSecondary home tax

Taxes accruing to Taxes accruing to the Federationthe Federation

Mineral oil dutyInsurance taxTobacco dutyCoffee dutyElectricity dutySolidarity surcharge

LänderLänderFederationFederation

Overview Taxes

Total 308 bn €Total 83.5 bn €

Total 37 bn €

Total 20.5 bn €

Total German Tax Revenue449 bn €


Division of Corporation Tax Revenue (2005)

Federation Laender Municipalities

8.2 bn €8.2 bn €

Taxable companies282,000

Total Revenue16.4 bn €













Total 37 bn €

Total 20.5 bn €

Overview Taxes


Division of Income Tax Revenue (2005)

Federation Laender Municipalities

77.4 bn €77.4 bn €

27.6 bn €

Total Revenue182.4 bn €

Number of taxpayers24.3 m













Total 37 bn €

Total 20.5 bn €

Overview Taxes


Distribution of The VAT Revenue I• The German constitution: VAT revenue has to be shared between the

Federation and the Länder according to the ratio of inevitable expenditure and current revenues

• 2006: 5.63 % of total revenue is assigned to the Federation to finance a subsidy to the social security pension scheme

• Then, 2.2 % of the remaining revenue is transferred to the Municipalities • The remaining revenue is shared by the Federation and Länder at a ratio

of 49.6 % to 50.4 % (except for some special fixed allowance of about € 2.3 billion from the Länder to the Federation)

• The EU share is financed by the Federation=> Result 2006:

– Federation 39.6% – Länder 44.9%– Municipalities 2.0%


VAT Shares of Federation, Länder, Municipalities and The EU

70,061,7 59,5 55,0 50,9

42,036,6 36,0 36,9 39,7 38,9 40,1 40,1 38,2 37,4 40,0 39,6 42,0 42,4 42,9 41,5

30,0

33,2 34,036,0 39,9

44,049,5 49,5 46,7 45,7 45,9 45,9 46,5 46,5 48,4 44,8 44,9 43,5 43,3 43,3 43,9

5,1 6,5 9,0 9,2 14,0 13,9 14,5 14,3 12,5 13,1 11,9 11,3 13,2 12,1 13,1 13,4 12,5 12,3 11,8 12,6

2,02,02,02,02,12,12,12,12,12,12,12,12,1

0

10

20

30

40

50

60

70

80

90

100

1970

1975

1980

1985

1990

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

*20

07*

2008

*20

09*

2010

*Federation Länder EU Municipalities


Distribution of The VAT Revenue II• In a second step the VAT revenue belonging to the Länder as a whole

is distributed among the individual Länder. • A part of the Länder share of VAT, but not more than 25%, goes as a

supplementary portion to those Länder whose receipts from the income tax, the corporation tax and other taxes per capita are lower than average.1

• The remainder of the Länder share of VAT, at least 75%, is distributed according to the number of inhabitants.

1 The exact amount of the VAT supplementary portions depends on the amount by which the per capita tax revenue of a Land falls below the average per capita tax receipts.


Länder VAT Revenues 2005

11,25

7,76

6 ,68 6 ,57

5,45

3 ,803 ,33 3 ,11 2 ,97 2 ,64 2 ,59

2 ,21 1,96

1,08 0 ,840 ,41

0

2

4

6

8

10

12

Nordrhe

in-Westf

alen

Bayern

Baden

-Würt

tembe

rg

Niedersa

chse

nSac

hsen

Hesse

n

Sachs

en-A

nhalt

Brande

nburg

Thürin

gen

Rheinl

and-P

falz

Berlin

Meckle

nburg

-Vorp

ommern

Schlesw

ig-Hols

tein

Hambu

rgSaa

rland

Bremen

in b i l l io ns €


Länder VAT Revenues Per Capita 2005

1.342 1.290 1.273 1.266 1.213

821 800 763694 651 623 623 623 623 623 623

0200400600800

1.0001.2001.4001.600

Sachs

en-A

nhalt

Meckle

nburg-V

orpommernSac

hsen

Thüring

en

Brande

nburg

Nieders

achse

nSaa

rland

Berlin

Schles

wig-Holst

ein

Rheinl

and-P

falz

Nordrhein

-Wes

tfalen

Bayern

Bremen

Baden

-Württe

mberg

Hesse

nHam

burg

in bn €


45,3

30,6

12,9

11,2

53,1

29,8

14,1

3,0

54,2

32,8

12,0

1,0

48,3

34,8

14,1

2,9

47,1

35,3

13,7

3,9

42,5

40,6

12,2

4,7

42,1

39,9

13,2

4,8

41,7

39,9

13,8

4,6

42,7

39,4

13,2

4,7

0

10

20

30

40

50

60

70

80

90

100

1950 1960 1970 1980 1990 2000 2005 2006* 2007*

Federal state Länder Municipalities EU LAF

Tax Revenue of The Federation, Länder and Municipalities as Share in German Tax Revenue


Total Tax Revenue of The Federation, The Länder And The Municipalities

Due to Financial Equalization Scheme Between The

Federal Government and The Länder


Total Tax Revenue of The Federation (2005)

Bundessteuern Bundesanteile Gemeinschaftssteuern

1 Transfers to Länder, Municipalities and EU

83.5 bn €

146.6 bn €

Federation Tax Revenue 230.1 bn €- 39.9 bn €1

190.2 bn €


Total Tax Revenue of Municipalities (2005)

Total Revenue

59.8 bn €

GemeindesteuernGemeindeanteile gemeinschaftliche SteuernUmlagen

41.9 bn €

20.2 bn €

- 2.3 bn €


Total Tax Revenue of Länder (2005)

Total Revenue

180.7 bn €

LändersteuernLandesanteil GemeinschaftsteuernBundesergänzungszuweisungen

20.8 bn €26.2 bn €

133.7 bn €


-377--Hamburg

-+366+181Bremen

-+2,441+2,810Berlin

-+573+1,953Thüringen

-+145+132Schleswig-Holstein

-+580+2,117Sachsen-Anhalt

-+1,007+3,472Sachsen

-+112+115Saarland

-+292+198Rheinland-Pfalz

-487--Nordrhein-Westfalen

-+359+195Niedersachsen

-+428+1,459Mecklenburg-Vorpommern

-1,593--Hessen

-+581+1,976Brandenburg

-2,219--Bayern

-2,209--Baden-Württemberg

PayersRecipientsFrom the Federation

Transfers


Länder Tax Revenue 2005

35,2

24,720,7

15,312,412,011,5

8,1 7,4 7,3 6,8 5,5 5,1 4,52,2 1,8

05

10152025303540

Nordrh

ein-W

estfa

lenBay

ern

Baden

-Wür

ttembe

rg

Nieders

achs

enSac

hsen

Hesse

nBerl

in

Rheinl

and-P

falz

Brande

nburg

Sachs

en-A

nhalt

Thüri

ngen

Schles

wig-Hols

tein

Meckle

nburg

-Vorp

ommern

Hambu

rgSaa

rland

Bremen

in bn €


1.9491.9811.9281.914

2.901

1.970

3.387

1.996

2.8922.9552.912

1.941

2.9882.580

2.095

2.715

0500

1000150020002500300035004000

Nordrh

ein-W

estfa

lenBay

ern

Baden

-Wür

ttembe

rg

Nieders

achs

enSac

hsen

Hesse

nBerl

in

Rheinl

and-P

falz

Brande

nburg

Sachs

en-A

nhalt

Thüri

ngen

Schles

wig-Hols

tein

Meckle

nburg

-Vorp

ommern

Hambu

rgSaa

rland

Bremen

Länder Tax Revenue Per Capita 2005

in bn €


The End

Division of German Tax Revenues And The Financial ... · 21.11.2006 EUROsociAL – Workshop...

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