Withholding taxes

In German tax law, withholding taxes refer to taxes that are not paid by the recipient of a payment, but are to be paid directly to the tax authorities by the paying office.

There are different forms of withholding taxes:

• the withholding tax is an advance payment that is offset against the final, individual tax liability, e.g. B. Income tax in connection with annual income tax adjustment .
• the withholding tax is calculated at a flat rate and includes the final tax liability, such as B. Withholding tax .
• Mixed forms in which the taxpayer can choose between flat-rate or individual taxation, such as B. when waiving an annual wage tax adjustment .

Since the deduction is made at the source of income, withholding taxes are used synonymously . The advantage of the withholding tax procedure is that it is relatively easy to determine the tax liability. The disadvantage is a generalization that does not allow individual aspects to be taken into account.

Individual evidence

1. ↑ Withholding taxes - general . In: Federal Central Tax Office . Retrieved September 1, 2018.
2. ↑ Withholding taxes . In: Gabler . Retrieved September 1, 2018.