Taxation in Germany (Paperback)

High Quality Content by WIKIPEDIA articles! Taxes in Germany-being a Federal Republic-are levied by the Federation (Bund), the States (Laender) as well as the Municipalities (Gemeinden). Many direct and indirect taxes exist, whereof income tax and VAT are the most relevant. The German word for tax is die Steuer which originates from the Old High German word stiura meaning help. It should not be confused with the word das Steuer, which means steering or helm.So even if Germany is a federal state 95% of all taxes are imposed on a federal level. The income of these taxes is to be allocated to the Federation and the States as following (Art. 106 Grundgesetz):