Minimum taxation

from Wikipedia, the free encyclopedia

Rules on minimum taxation are intended to ensure the taxation claim of the collecting state. Some of them are directed directly against strategies for tax avoidance , others are intended to ensure a regular tax flow.

Regardless of their precise form, minimum taxation regulations have a distorting effect and reduce the neutrality of a tax system. It is the legislator's task to weigh these tax systematic disadvantages against the desired goals.

Minimum taxation regulations exist in many countries. Are common

  • Loss offsetting restrictions
  • Minimum taxes in the form of fixed amounts
  • Minimum tax rates or minimum wage rates

Loss offsetting restrictions

Since 2004 to Germany acc. § 10d (2) EStG, negative income not balanced in the following assessment periods

  • unlimited up to a total amount of income of 1 million euros,
  • in addition, up to 60 percent of the total amount of income exceeding 1 million euros

are deducted primarily before special expenses, extraordinary burdens and other deductible amounts (regulation on loss carryforward ).

With an existing loss carryforward of 3 million euros and taxable income before loss compensation in the current year of 2 million euros, this means that only 1.6 million euros of the losses can be offset, while 400,000 euros are taxed.

Minimum taxes in the form of fixed amounts

  • In Austria , corporations incur a so-called minimum corporation tax - both on profit and loss . This minimum tax is either 1,092 euros (in the first year of the corporation) or 1,750 euros and is to be paid in advance of a quarter each (generally on February 15, May 15, August 15 and November 15).
  • In Luxembourg , corporations incur a tax of 3,000 euros comparable to the Austrian minimum corporation tax.
  • The United States have with the applicable income tax and corporation tax alternative minimum tax ( alternative minimum tax, AMT) a different approach. This is a parallel calculation, largely independent of the determination of the regular tax liability, for a separate assessment basis, to which special tax rates are then to be applied. The aim of the AMT is to ensure a minimum tax payment for natural and legal persons. The AMT replaces the regular tax liability if it exceeds this. The calculation of the AMT is particularly complicated for partnerships and corporations .
  • In Canada , too , minimum taxation rules apply when people with high incomes are only subject to regular taxation for a small proportion of their income. This effect can occur, for example, if a large part of the income is obtained from sources that are tax-privileged.

Minimum tax rates or minimum wage rates

In Germany , the rate of assessment for trade tax is 200 percent, unless the municipality has determined a higher rate ( Section 16 (4) 2 GewStG).
As far as taxes are harmonized within the EU, minimum tax rates apply (e.g. for sales tax , mineral oil tax ), which the member states must not fall below.