Germany

Germany's Rankings
CategoryRankScore
Overall Rank1666.94
Corporate Taxes2652.35
Individual Taxes2660.41
Consumption Taxes1075.93
Property Taxes1665.81
International Tax Rules887.23

Germany ranks 16th overall on the 2019 International Tax Competitiveness Index, the same as in 2018.


Strengths

  • Inventory can receive Last-In-First-Out treatment, the most neutral treatment of inventory costs.
  • Germany has a broad tax treaty network, with 96 countries.
  • The VAT rate of 19 percent is near the OECD average (19.1 percent) and the VAT compliance burden is relatively low.

Weaknesses

  • Germany has the fifth highest corporate income tax rate among OECD countries, at 29.9 percent.
  • The personal income tax is complex with an associated compliance burden of 134 hours-the third highest among OECD countries.
  • Companies are limited in the amount of net operating losses they can use to offset income on future or previous tax returns.

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