Tax subsidy, fiscal privilege or tax preference is a comprehensive term for tax exemptions, tax reductions and tax remuneration. It concerns thereby special fiscal special arrangements, which lead for the public hand to reduced tax incomes. Is to be differentiated however between systematic or by the equality in fiscal matters ordered regulations and subsidy-political regulations. Employee savings extra pay or the investment premium is paid from the wage tax and/or income tax or body expensive arising and belongs in the broadest sense likewise to the fiscal privileges as well as tax remuneration like the child benefit or the home of one's own extra pay.

No tax preferences: Frequently one calls also special depreciation possibilities (special depreciations, increased writings-off) colloquially tax preference or also the departure of expenses, travel costses and travel costs lump sums, extra charges, tax free allowances, unusual load etc. of the fiscal assessment basis.

A tax exemption takes place in the way that certain income parts, conversions or circumstances expressly from the respective tax are excluded.

• Example income tax: Nr.9 EStG compensations is taxfree because of one of the employer arranged or judicially expressed dissolution of the service relationship, at the most however 7,200 euro after "§ 3. "…
• Example value added tax (Germany): Are taxfree after "§ 4 Nr.12 UStG the letting and the farm lease of properties,"…
• Example trade tax: Taxfree Nr.1 GewStG is among other things the national Lotterieunternehmen, the certified public gaming houses with their the gaming house delivery which are subject activities, after "§ 3"…
• Example body-expensively: Taxfree are after "§ 5 Nr.7 KStG political parties"… and their area federations as well as local voter combinations and their roof federations. "…

By tax reduction one understands a decrease of the control item or the determined tariff-expensively.

• Example income tax: The determined income tax is reduced over

- foreign taxes, which are to be taken into account on the German income tax ("§ 34c EStG),

- around 50% of allowances to political parties,"… at the most in each case 825 euro"… ("§ 34g EStG),

- with an income from commercial enterprises"… around the 1,8fache in each case"… of the determined trade tax measuring amount"… ("§ 35 EStG),

- around a certain percentage of the expenditures for household near conditions of employment and for the recourse to of householdnear services"… ("§ 35a EStG).

• Example value added tax: The value added tax reduces itself on seven per cent for the achievements from the activity as a tooth technician, ("§ 12 Abs.2 Nr.6 UStG) in addition, for fresh cut flowers ("§ 14 UStG).

• Example trade tax: The tax measured data reduces itself on 56 per cent with house-manufacturing"… ("§ 11 Abs.3 GewStG)

• Example body-expensively: Body-expensively reduces itself around the foreign tax, as far as this corresponds to the German body-expensively, if"… ("§ 26 KStG)

Articles in category "Tax preference"

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