The German Tax Reform of 2000

Author: Keen M.

Source: International Tax and Public Finance, Volume 9, Number 5, September 2002 , pp. 603-621(19)

Publisher: Springer

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Abstract:

Fundamental tax reform was a long time coming to Germany, but the landmark package of reforms agreed in July 2000 is substantially altering the business and personal tax environment. This paper describes and evaluates those reforms. It assesses the likely impact on investment and labor supply, and focuses particularly on key structural aspects of reform: the end of imputation, and the abolition of tax on corporate holdings in other corporations. Given Germany's prominence in Europe, and the structure of fiscal relations within Germany, it evaluates too the likely impact on other jurisdictions.

Keywords: tax reform; corporate taxation; imputation; personal taxation

Language: English

Document Type: Research article

Affiliations: 1: Fiscal Affairs Department, International Monetary Fund, Washington DC 20431 mkeen@imf.org

Publication date: 2002-09-01