It is the most extensive tax in the Federal Republic of Germany, and the scope of collection includes all those who obtain taxable income. In the Federal Republic of Germany, 90% of enterprises belong to private enterprises and individual enterprises, and the profits of these enterprises, as the personal income of business owners or partners, belong to the scope of income tax as well as the income obtained by freelancers. Income tax is the second largest tax in the Federal Republic of Germany after value-added tax, with a revenue of * * * 28.3 billion euros in 20 16, accounting for about 33% of the total tax revenue.
Taxpayer: Taxpayers of personal income tax in Germany are divided into unlimited taxpayers and limited taxpayers. German permanent residents (with long-term or habitual residence in Germany) bear unlimited tax obligations and pay taxes according to all their income at home and abroad; Non-German permanent residents have limited tax obligations and usually pay taxes only according to their income in Germany.
2. Tax scope and tax basis: According to the provisions of the German income tax law, the scope of personal income tax collection includes:-income from agriculture and forestry-income from industry and commerce-income from freelance work-income from investment-income from renting and works, patents and so on. -Other income is the balance after deducting the tax-free amount permitted by law.
Legal basis:
Individual Income Tax Law of the People's Republic of China
Article 1 Individuals who have domicile or no domicile in China but have resided in China for a total of 183 days in a tax year are individual residents. Individual income tax shall be paid in accordance with the provisions of this Law on income obtained by individual residents from inside and outside China. Individuals who have neither domicile nor residence in China, or who have lived in China for less than 183 days in a tax year, are non-resident individuals. Income obtained by non-resident individuals from China shall be subject to individual income tax in accordance with the provisions of this Law. The tax year starts from Gregorian calendar 1 month 1 day and ends on1February 3 1 day.
Article 2 Individual income tax shall be paid on the following personal income: (1) Income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from remuneration; (4) Income from royalties; (5) Operating income; (6) Income from interest, dividends and bonuses; (7) Income from property lease; (8) Income from property transfer; (9) Accidental income. Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.
Article 3 The tax rate of individual income tax: (1) For comprehensive income, the excess progressive tax rate of 3% to 45% is applicable (the tax rate table is attached); (2) For operating income, the excess progressive tax rate of 5% to 35% shall apply (the tax rate table is attached); (3) Income from interest, dividends and bonuses, income from property leasing, income from property transfer and accidental income shall be subject to the proportional tax rate of 20%. (1) Bonuses in science, education, technology, culture, health, sports and environmental protection. Awarded by the provincial people's government, the State Council ministries and commissions, China People's Liberation Army units at or above the military level, and foreign and international organizations; (2) Interest on government bonds and financial bonds issued by the state; (3) Subsidies and allowances issued in accordance with the unified provisions of the state; (four) welfare funds, pensions and relief funds; (5) Insurance compensation. (6) Demobilized soldiers, demobilization fees and pensions; (7) Resettlement fees, resignation fees, basic pension or retirement fees, resignation fees and retirement living allowances paid to cadres and workers in accordance with the unified provisions of the state; (8) Income from diplomatic representatives, consular officials and other personnel of embassies and consulates in China who should be exempted from tax according to relevant laws; (9) Income exempted from tax as stipulated in international conventions and agreements signed by the Government of China; (ten) other tax-free income stipulated by the State Council. The tax exemption provisions in Item 10 of the preceding paragraph shall be reported by the State Council to the NPC Standing Committee for the record.