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21.11.2006EUROsociAL Workshop Brasilia 1 Division of German Tax Revenues And The Financial Equalization Scheme Between The Federal Government And The Lnder Andrea Gebauer German Federal Ministry of Finance

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21.11.2006EUROsociAL Workshop Brasilia 2

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21.11.2006EUROsociAL Workshop Brasilia 3 Municipalities Joint taxes Corporate Income Tax (Bund 50 %, Lnder 50 %, Gemeinden - %) Income Tax ( Bund 42,5 %, Lnder 42,5 %, Gemeinden 15 % ) VAT (Bund 52,01 %, Lnder 45,91 %, Gemeinden 2,08 %) Taxes accruing to the Lnder Inheritance and gift tax Real property transfer tax Motor vehicle tax Tax on betting and lotteries Fire protection tax Local Taxes Trade Tax Real property tax Dog Tax Secondary home tax Taxes accruing to the Federation Mineral oil duty Insurance tax Tobacco duty Coffee duty Electricity duty Solidarity surcharge Lnder Federation Overview Taxes Total 308 bn Total 83.5 bn Total 37 bn Total 20.5 bn Total German Tax Revenue 449 bn

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21.11.2006EUROsociAL Workshop Brasilia 4 Division of Corporation Tax Revenue (2005) 8.2 bn Taxable companies 282,000 Total Revenue 16.4 bn

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21.11.2006EUROsociAL Workshop Brasilia 5 Municipalities Joint taxes Corporate Income Tax (Bund 50 %, Lnder 50 %, Gemeinden - %) Income Tax ( Bund 42,5 %, Lnder 42,5 %, Gemeinden 15 % ) VAT (Bund 52,01 %, Lnder 45,91 %, Gemeinden 2,08 %) Taxes accruing to the Lnder Inheritance and gift tax Real property transfer tax Motor vehicle tax Tax on betting and lotteries Fire protection tax Local Taxes Trade Tax Real property tax Dog Tax Secondary home tax Taxes accruing to the Federation Mineral oil duty Insurance tax Tobacco duty Coffee duty Electricity duty Solidarity surcharge Lnder Federation Total 308 bn Total 83.5 bn Total 37 bn Total 20.5 bn Overview Taxes

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21.11.2006EUROsociAL Workshop Brasilia 6 Division of Income Tax Revenue (2005) 77.4 bn 27.6 bn Total Revenue 182.4 bn Number of taxpayers 24.3 m

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21.11.2006EUROsociAL Workshop Brasilia 7 Municipalities Joint taxes Corporate Income Tax (Bund 50 %, Lnder 50 %, Gemeinden - %) Income Tax ( Bund 42,5 %, Lnder 42,5 %, Gemeinden 15 % ) VAT (Bund 52,01 %, Lnder 45,91 %, Gemeinden 2,08 %) Taxes accruing to the Lnder Inheritance and gift tax Real property transfer tax Motor vehicle tax Tax on betting and lotteries Fire protection tax Local Taxes Trade Tax Real property tax Dog Tax Secondary home tax Taxes accruing to the Federation Mineral oil duty Insurance tax Tobacco duty Coffee duty Electricity duty Solidarity surcharge Lnder Federation Total 308 bn Total 83.5 bn Total 37 bn Total 20.5 bn Overview Taxes

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21.11.2006EUROsociAL Workshop Brasilia 8 Distribution of The VAT Revenue I The German constitution: VAT revenue has to be shared between the Federation and the Lnder 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 Lnder at a ratio of 49.6 % to 50.4 % (except for some special fixed allowance of about 2.3 billion from the Lnder to the Federation) The EU share is financed by the Federation => Result 2006: Federation 39.6% Lnder 44.9% Municipalities 2.0%

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21.11.2006EUROsociAL Workshop Brasilia 9 VAT Shares of Federation, Lnder, Municipalities and The EU

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21.11.2006EUROsociAL Workshop Brasilia 10 Distribution of The VAT Revenue II In a second step the VAT revenue belonging to the Lnder as a whole is distributed among the individual Lnder. A part of the Lnder share of VAT, but not more than 25%, goes as a supplementary portion to those Lnder whose receipts from the income tax, the corporation tax and other taxes per capita are lower than average. 1 The remainder of the Lnder 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.

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21.11.2006EUROsociAL Workshop Brasilia 11 Lnder VAT Revenues 2005

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21.11.2006EUROsociAL Workshop Brasilia 12 Lnder VAT Revenues Per Capita 2005 in bn

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21.11.2006EUROsociAL Workshop Brasilia 13 Tax Revenue of The Federation, Lnder and Municipalities as Share in German Tax Revenue

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21.11.2006EUROsociAL Workshop Brasilia 14 Total Tax Revenue of The Federation, The Lnder And The Municipalities Due to Financial Equalization Scheme Between The Federal Government and The Lnder

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21.11.2006EUROsociAL Workshop Brasilia 15 Total Tax Revenue of The Federation (2005) 1 Transfers to Lnder, Municipalities and EU 83.5 bn 146.6 bn Federation Tax Revenue 230.1 bn - 39.9 bn 1 190.2 bn

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21.11.2006EUROsociAL Workshop Brasilia 16 Total Tax Revenue of Municipalities (2005) Total Revenue 59.8 bn 41.9 bn 20.2 bn - 2.3 bn

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21.11.2006EUROsociAL Workshop Brasilia 17 Total Tax Revenue of Lnder (2005) Total Revenue 180.7 bn 20.8 bn 26.2 bn 133.7 bn

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21.11.2006EUROsociAL Workshop Brasilia 18 From the FederationRecipientsPayers Baden-Wrttemberg---2,209 Bayern---2,219 Brandenburg+1,976+581- Hessen---1,593 Mecklenburg-Vorpommern+1,459+428- Niedersachsen+195+359- Nordrhein-Westfalen---487 Rheinland-Pfalz+198+292- Saarland+115+112- Sachsen+3,472+1,007- Sachsen-Anhalt+2,117+580- Schleswig-Holstein+132+145- Thringen+1,953+573- Berlin+2,810+2,441- Bremen+181+366- Hamburg---377 Transfers

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21.11.2006EUROsociAL Workshop Brasilia 19 Lnder Tax Revenue 2005 in bn

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21.11.2006EUROsociAL Workshop Brasilia 20 Lnder Tax Revenue Per Capita 2005 in bn

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21.11.2006EUROsociAL Workshop Brasilia 21 The End