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):
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