German Tax Law

German tax law requires individuals and businesses to pay taxes on income, profits, and assets to fund public services. The system includes income tax, value-added tax (VAT), corporate tax, and other levies. Income tax rates are progressive, meaning higher earners pay a larger percentage. Employers withhold taxes from wages, simplifying compliance. Tax laws also offer deductions, allowances, and exemptions to reduce taxable amounts. Overall, German tax law aims for fairness, compliance, and sustainable public financing, with regulations detailed in national laws and enforced by tax authorities. For specific situations, consulting a tax professional is advisable.