Germany Seeing Billions in Extra Tax Collections

April 19, 2011 Taxation in Germany

German Government Building, BerlinGermany saw an unexpected spike in tax revenue growth in the first quarter of 2011, caused by an immense jump in overall corporate tax collection throughout the country.

According to preliminary government revenue estimates made available on April 18th, Germany’s overall tax collections jumped by EUR 12 billion during the first quarter of the year, when compared to revenues seen in the first quarter of the previous year. The extra collections are already higher than the total monetary increases that were forecasted for the year.

Corporate tax revenues in Germany rose by nearly 50 percent in March 2011, and overall personal income tax collections rose by 10 percent. Level of collections of sales tax also climbed by 15.8 percent, and real estate sales tax grew by 19 percent.

The German government expected to see a final tax revenue figure of EUR 537 for the current year. However, new projections are currently being calculated to account for the newly seen economic growth and tax revenue levels. The latest forecasts for the annual revenues indicate that the yearly tax collection total will exceed EUR 550 billion. It is expected that the revenue estimates for the next year will also be revised upwards by an approximate EUR 10 billion, bringing collections in Germany up to EUR 573 billion.

Photo by scubadive67