Decomposition Act
Basic data | |
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Title: | Decomposition Act |
Previous title: | Law on tax eligibility and breakdown of income tax and corporate tax |
Abbreviation: | ZerlG |
Type: | Federal law |
Scope: | Federal Republic of Germany |
Issued on the basis of: | Art. 107 para. 1 GG |
Legal matter: | Constitutional finance law , tax law |
References : | 604-2 |
Original version from: | March 29, 1952 ( BGBl. I p. 225 ) |
Entry into force on: | January 1, 1952 |
New announcement from: | February 25, 1971 ( Federal Law Gazette I p. 145 ) |
Last revision from: | August 6, 1998 ( Federal Law Gazette I, p. 1998 ) |
Entry into force of the new version on: |
August 12, 1998 |
Last change by: |
Art. 11 G of December 11, 2018 ( Federal Law Gazette I p. 2338, 2348 ) |
Effective date of the last change: |
December 15, 2018 (Art. 20 G of December 11, 2018) |
GESTA : | D012 |
Please note the note on the applicable legal version. |
The decomposition law (ZerlG) is a German federal law , the distribution of income and corporate tax revenues between the countries of the Federal Republic of Germany governs. In particular, the law contains provisions for distribution if a company has permanent establishments in different federal states.
The Decomposition Act is not itself a tax law , as it only regulates the distribution of taxes between the regional authorities , but not the tax claim of the state against the citizen . The breakdown of trade tax is regulated in the Trade Tax Act.
In principle, according to Section 1 (1) ZerlG, the income or corporation tax revenue is due to the country in which a taxpayer has his place of residence or the place of management on October 10 of each year . For the special forms of collection ( wage tax and interest deduction ) the Decomposition Act contains special regulations.
The division of tax revenue from income tax and corporation tax made by the Decomposition Act is only provisional, however, as the financial equalization between the federal government and the federal states and among the federal states ensures a further redistribution of tax revenue.