Taxation in Germany: A little bit of progress – but no far-reaching relief for firms

In spite of the reduction in corporation tax rates, the tax burden on firms in Germany has only sunk slightly this year. In contrast, the tax burden on the employment of highly qualified workers can considerably improve Germany’s international competitiveness in 2004 and 2005. The ZEW has come to this result with the help of the European Tax Analyzer, a software tool by which the tax burden imposed on companies and their activities in five countries can be compared, and the IBC-Taxation Index.

Results of the study in German