KPMG Germany Webpage
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By Robert E Tromp
Part III. Taxation Of Individuals
3.1 Income Tax Rate Changes
The final income tax rate changes (assuming enactment of the Supplemental Tax Relief Act) are as follows:
|
Tax rate |
1999 |
2000 |
2001 |
2003 |
2005 |
|
Corporate income tax |
40 % |
40 % |
25 % |
|
|
|
Personal income tax - min |
23.9 % |
22.9 % |
19.9 % |
17 % |
15 % |
|
Personal income tax - max |
53 % |
51 % |
48.5 % |
47 % |
42 % |
|
Zero bracket amt. (rounded) |
13,000 |
13,500 |
14,000 |
14,500 |
15,000 |
The principal change compared with previous drafts is reduction of the top marginal rate to 42 % in 2005 instead of 45 % as originally planned. In 2005, the top tax bracket will apply to taxable income starting at DM 102,000 (roughly US-$ 47,300 at current exchange rates).
