Tax Advisors: Germany’s 10 Largest Sources of Tax Revenue

In 2017, Germany collected approximately 735 billion euros in taxes. These enormous sums stem from a complex network of tax sources. As a point of contact for tax advisors in Düsseldorf and Oberhausen, we therefore took a closer look at the figures for the individual sources of tax revenue and sorted them by total amount. Which of these “funds” do you regularly contribute to yourself? Here is our top 10 list of tax revenues.

10th place: Insurance tax: 13.3 billion euros

Insurance tax is currently levied at a rate of 19 percent. However, many types of insurance are subject to a different tax rate. Revenue from insurance tax increases annually.

9th place: Tobacco tax: 14.4 billion euros

The tax rate on tobacco products is repeatedly increased, which is clearly reflected in retail prices. Nevertheless, revenue has remained around 14 billion euros for many years.

8th place: Solidarity surcharge 18.0 billion euros

In principle, almost every German who works and earns money pays the so-called Soli. Soli revenue has risen significantly time and again in recent years. The Soli is set to be abolished in the future; it remains to be seen when—or if—these plans will be put into action.

7th place: Unclaimed taxes on income: 20.9 billion euros

Behind this cumbersome term lie capital gains and interest withholding taxes, for which no tax return is filed; instead, the amounts are transferred directly from the bank to the tax office. The federal and state governments each receive 50 percent of the tax revenue from these sources.

6th place: Corporate income tax: 29.3 billion euros

Corporate income tax is levied on the income of legal entities. This includes, for example, corporations such as the GmbH or AG. Revenue has more than tripled over the past eight years.

5th place: Energy tax 41.0 billion euros

As the successor to the old mineral oil tax, the energy tax now covers all conceivable types of energy. Revenues have hovered around 40 billion euros for nearly 15 years.

4th place: Trade tax 50.0 billion euros

Trade tax is a revenue-based tax that business owners must pay to their municipality. The municipalities must remit a portion of this to the federal and state governments. Consequently, approximately 40.0 billion euros remain solely for the municipalities. Because the economy is booming, revenue from trade tax is also rising. Due to the complexity of this tax, you should seek advice from a tax advisor on this matter.

3rd Place: Income Tax Collected: 59.4 Billion Euros

Declared taxes are those for which a return is filed, which is then assessed by the tax office via a notice. In terms of revenue, this tax knows only one direction: steeply upward. This pleases the federal government, the states, and the municipalities alike.

2nd place: Payroll tax: 195.5 billion euros

Income tax is also relevant for the majority of employees. Here, too, the state treasury has been enjoying rising revenues for several years. As with 3rd place, the revenue is divided among the federal government, the states, and the municipalities. The federal government and the states each receive 42.5 percent, and the municipalities receive 15 percent.

1st place: Sales taxes: 226.4 billion euros

The number one spot comes with a special feature. The term “sales taxes” encompasses two tax sources: value-added tax (170.5 billion euros) and import sales tax (55.9 billion euros). Here, too, the federal government, states, and municipalities are pleased to see an increase of 9 billion euros compared to the previous year. The distribution shifts from year to year.

And have you found yourself in any of these tax categories? Finally, we have one last figure: 500 million euros remain in the state treasury every year because many taxpayers either fail to file their tax returns or file them incorrectly. You’d like to avoid that, wouldn’t you? That’s why we’re here to support you as your tax advisor, auditor, and legal consultant in Düsseldorf and Oberhausen. So if you’re one of the taxpayers mentioned above and have questions about specific topics, our team of tax experts always has the right answer.