• Germany's news in English
 
app_header_v3

Tax payers 'could save up to €240' in 2013

The Local · 4 Jan 2013, 10:25

Published: 04 Jan 2013 10:25 GMT+01:00

Finance expert at Berlin's Free University, Frank Hechtner, figured out that Germans could be saving up to €20 a month in the coming year compared with what they paid in 2012, the Süddeutsche Zeitung said.

Thanks to the healthy state of the country's national pension pot, employees may well find themselves paying less into it this year. The government is planning on reducing monthly contributions from 19.6 percent to 18.9 percent of a person's wage.

This, if passed, could see an unmarried person earning €3,400 per month saving €185 in taxes each year. A married couple with two children could save €200.

The full effect will not become clear until April, when changes will be given the go ahead and come into force.

Potential upcoming reforms could, Hechtner said, also benefit lower earners by €100 per year. Currently, Germans may earn up to €400 per month without paying taxes but this figure should rise to €450 over 2013. Those earning up to €850 per month should pay reduced taxes.

But as Hechtner explained, although pension contributions may drop, Germans could find themselves paying slightly more in nursing care insurance. This is set to rise from 1.95 percent of a person's monthly wage to 2.05 percent.

Initially suggested tax reforms by the ruling Christian Union and Social Democrat coalition were rejected by the Social Democrats, who hold a majority in the Bundestag upper house of parliament. If they had been passed, middle earners could have been paying up to €350 less in taxes 2013.

Story continues below…

The Local/jcw

The Local (news@thelocal.de)

Your comments about this article

13:45 January 4, 2013 by smart2012
In contradiction to the article that more money are needed to close gap in budget by 2014. Yes, Verkel propaganda.

Also, am paying every year app 32000 euros in taxes, and those guys make a big deal of maybe saving 150 euros ie 0.46%? Lol
10:03 January 5, 2013 by Englishted
So the more you earn the greater your tax cut ,thats the way to close the gap between rich and poor to make a more equal and fair society.

Also there is a article here today about more austerity measures needed in Germany ,you can't have it both ways unless as many believe the ruling parties are reverse Robin Hoods stealing from the poor to give to the rich.
Today's headlines
No injuries after blast near Bavarian migrant centre
A sign at the Zirndorf migrant centre. Photo: DPA

A suitcase, likely packed with aerosol cans, has blown up near a migrant centre on the outskirts of Nuremberg, causing no injuries, police confirm.

Not your average student digs: 'amazing' plastic bubble
Photo: DPA

Could this wacky experiment be the future of student housing?

Police settle train violence over smelly feet
Not the feet in question. Photo: Caitlin Regan/Flickr

A fellow passenger's foot odour proved too much for one traveller to stomach.

How Berliners are responding to the Bavaria attacks
Photo: DPA

Is fear of terrorism creeping up on the capital?

Munich gunman was far-right racist: media reports
Photo: DPA

According to research by the Frankfurter Allgemeine Zeitung the Munich gunman was proud to have been born on the same day as Hitler and hated Turks and Arabs.

Ansbach suicide attack
Ansbach bomber ‘influenced’ by third person: officials
Photo: DPA

Officials in Bavaria have said that the man who blew himself up in an apparent Islamist attack on Sunday was influenced by an as yet unknown person.

What is the link between the attacks in Germany last week?
Police on guard in Munich. Photo: DPA

And how likely are 'copycat' attacks?

Rights experts call for calm after string of violent attacks
Bavaria has called for soldiers to protect the German border. Photo: DPA

Human rights groups and legal experts are warning the government to react responsibly to the attacks and rampages which have taken place in Germany in recent days.

France church attacker had been arrested in Germany
Photo: DPA

A neighbour described the man as a "ticking time bomb".

Dutch join hunt for German terrorists-turned-outlaws
From left to right: Ernst-Volker Staub, Daniela Klette and Burkhard Garweg. Photo: DPA.

Dutch police on Tuesday told people to be on the lookout for three German far-left militants, at large for decades and suspected of a string of recent heists.

Sponsored Article
Why you should attend an international job fair
DPA
Gallery
IN PICTURES: How Munich responded to shooting spree
Sponsored Article
Avoid hidden fees when sending money overseas
Lifestyle
10 rookie errors all Brits make when they arrive in Germany
National
Bavaria train attack: Were police right to shoot to kill?
Sponsored Article
Why Swiss hospitality graduates are in demand
National
How to get German citizenship (or just stay forever)
Sponsored Article
Five things Americans should know about voting abroad
Technology
Brexit will turn Berlin into 'Europe’s startup capital'
Travel
Six soothing day trips to escape the bustle of Berlin
International
'Germany needs to make UK come to its senses'
Features
Six odd things Germans do in the summer
Sponsored Article
Why expats choose international health insurance
Travel
These 10 little-known German towns are a must see
Features
How two gay dads cut through German red tape to start a family
Sponsored Article
Health insurance for expats in Germany: a quick guide
National
Five things to know about guns in Germany
Sponsored Article
Avoid hidden fees when sending money overseas
Culture
10 things you need to know before attending a German wedding
National
Eight weird habits you'll pick up living in Germany
Lifestyle
Six reasons 'super-cool' Berlin isn't all it's cracked up to be
Sponsored Article
Why Swiss hospitality graduates are in demand
Society
Only one country likes getting naked on the beach more than Germany
Lifestyle
23 ridiculously fascinating things you never knew about Berlin
Sponsored Article
Why you should attend an international job fair
Culture
8 German words that perfectly sum up your 20s
Lifestyle
Can't make it past the door at Berlin's most famous club? Help is at hand
Business & Money
Why Frankfurt could steal London's crown as Europe's finance capital
Features
6 surprising things I learned about Germany while editing The Local
Culture
Five sure-fire ways to impress Germans with your manners
11,129
jobs available
Toytown Germany
Germany's English-speaking crowd