Germany tops Europe's corporate tax list

2nd February 2004, Comments 0 comments

2 February 2004 , BERLIN - Germany has the highest corporate taxes in Europe according to a German Finance Ministry agency study cited Monday in a media report. The survey by the Federal Finance Office - a market watchdog - showed combined federal and local German corporate income tax at 40 percent, said the Frankfurter Allgemeine newspaper. "No nation in Europe taxes profits of companies as highly as Germany," said the paper. Germany's highest company tax ranking in Europe for 2003 will carry over into th

2 February 2004

BERLIN - Germany has the highest corporate taxes in Europe according to a German Finance Ministry agency study cited Monday in a media report.

The survey by the Federal Finance Office - a market watchdog - showed combined federal and local German corporate income tax at 40 percent, said the Frankfurter Allgemeine newspaper.

"No nation in Europe taxes profits of companies as highly as Germany," said the paper.

Germany's highest company tax ranking in Europe for 2003 will carry over into this year despite recent tax cuts, said the Frankfurter Allgemeine.

Estonia has the lowest overall corporate tax rate with zero per cent, followed by Ireland with 12.5 percent, Lithuania 15 percent, Slovakia 25 percent, Poland 27 percent, Britain 30 percent, the Czech Republic 31 percent, Austria 34 percent and France 35.4 percent.

"Tax competition in the EU will become sharper with the accession of new member states," noted the finance office study.

Indeed, Slovakia introduced a flat income tax for business and individuals of 19 percent effective from January 1.

The Czech Republic, Estonia, Lithuania, Poland and Slovakia are part of a group of 10 nations due to join the EU on 1 May.

DPA
Subject: German news

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