Wealth tax (GDR)
The wealth tax (VST) was in the German Democratic Republic , a substance tax on the wealth of natural and legal persons . Since state-owned companies were exempt from tax liability and there were few private individuals or private companies with such assets, the tax revenue was marginal. The tax rate was between 0.5% and 2.5%.
Design
Natural persons with their place of residence or habitual abode in the GDR and corporations, companies etc. were subject to unlimited tax liability. Ä. with headquarters or management in the GDR. Unlimited tax liability meant that total global wealth was taxable.
People with their seat / residence outside of the GDR were subject to limited taxation. Here the tax liability only extended to the property located in the GDR.
State-owned enterprises , socialist cooperatives were not covered by the law. Companies and other assets that the state, political parties, social organizations, etc. belonged to were exempt from tax. This made up almost the entire economy of the GDR.
The assessment basis was the assets that were to be valued in accordance with §§ 73-75 and 77 of the Valuation Act , whereby debt items were deducted in accordance with § 74.
For stock corporations and GmbHs there was a minimum taxation: The applicable minimum assets for AGs were 50,000 and for GmbHs 20,000 marks of the GDR .
There was no personal allowance . If an exemption limit of 10,000 marks was exceeded (for spouses and children, 5,000 marks were added each (from 1988: 10,000 marks)) the entire property became taxable.
The tax rate for non-natural persons was 2% if the assets were a maximum of 500,000 marks and otherwise 2.5%. For natural persons with assets of a maximum of 25,000 marks, 0.5% was set aside, provided the assets were not used for agricultural purposes, and 1% for agricultural assets. Assets between 25,000 and 500,000 marks were taxed at 1.5%, assets over 500,000 marks at 2.5%.
After the turn
After the turnaround , market economy reforms were carried out, which also included a corresponding tax law. The People's Parliament decided on 6 March 1990 (ie before the first democratic parliamentary elections in 1990 ), the Law amending the legislation on income, corporation tax and wealth tax . On March 16, 1990, the relevant implementing regulation was issued. The key points were an adaptation to the law of the Federal Republic, i. H. the elimination of exemptions and the standardization of tax rates. From 1990 the tax rate was 0.5% for natural persons with total assets of up to 25,000 marks and 1% for all other taxpayers. The amount of tax together with income tax or corporation tax could not exceed 75% of taxable income.
literature
- Sandra Duda: The tax law in the state budget system of the GDR (= European university publications. Row 2: Law. Vol. 5126). Lang, Frankfurt am Main et al. 2010, ISBN 978-3-631-61305-4 , esp. Pp. 128-131, (also: Berlin, Freie Universität, dissertation, 2010).
- Ingo Müssener: The tax and duty system of the GDR in the transition from a planned economy to a market economy. Erich Schmidt, Bielefeld 1990, ISBN 3-503-02925-7 , pp. 18, 25-26.
- Wealth Tax Act (VStG) in the version of September 18, 1970 (Journal of Laws No. 675 of November 2, 1970), amended by the Tax Amendment Act of March 6, 1990.