Income tax flat rate
The flat rate of income tax is a form of taxation that is mainly intended to simplify the assessment process .
Flat rate according to § 37a, 37b EStG
One form is the lump sum, which § 37a and § 37b EStG allow for business-related benefits and gifts . The lump sum can be applied by the donor, whereby his donations are not included in the determination of his income.
The tax rate is 30%. As a rule, the assessment basis is the donor's own expenses, including sales tax . Detailed questions were regulated in a BMF letter dated April 29, 2008.
Lump sum according to Section 34c (5) EStG (Section 26 (6) KStG)
According to the BMF letter of 10 April 1986 ( Pauschalisierungserlass ), the foreign income from countries with which no double taxation agreement , at the request of a flat rate set was completed attributable income or corporation, which in individual cases, the tax entirely or adopted in part or can be set in a lump sum if it is expedient for economic reasons or the offsetting of foreign taxes according to § 34c para. 1 EStG is particularly difficult.
In contrast to the foreign employment decree, other income is recorded here than from employment.
According to this, foreign income can be taxed at a flat rate of 25%, provided that a foreign permanent establishment, partnership or subsidiary from which the income is drawn exclusively or almost exclusively the manufacture or delivery of goods other than arms, the extraction of mineral resources or the implementation of commercial services as far as this is not in the construction or operation of facilities that serve tourism, or in the rental and leasing of economic goods including the transfer of rights, plans, procedures, experience and knowledge or in the operation of commercial ships in international traffic consist.
In this case, however, foreign taxes cannot be credited or deducted.
Individual evidence
- ↑ Federal Tax Gazette. I 2008, p. 566
