German Terms of the Day: die Steuern und Abgaben

Newcomers often mention Germany’s high prices when it comes to labor costs and products. One one hand, some employees enjoy good benefits, and let’s not forget the many kinds of taxes employers in Germany have to pay.

Let’s take a pub owner and the list of applicable taxes and shares he has to pay:

  • Schankerlaubnis (public entertainment license), Getränkesteuer (alcoholic beverage tax), Vergnügungssteuer (entertainment tax), Mehrwertsteuer (value-added tax or VAT), Einkommenssteuer (income tax), Vermögenssteuer (property tax/personal tax), Grundvermögenssteuer (immovable property tax), Gewerbekapitalsteuer (trade capital tax), Gewerbeertragssteuer (tax on profits), Lohnsteuer (payroll tax), Lohnnebenkosten (nonwage labor costs), Hundesteuer (dog license fee), Kapitalertragssteuer (capital returns tax);

 

  • Add the employer’s obligatory share of his employees’ Krankenversicherung (health insurance), Pflegeversicherung (long term care insurance), Berufsgenossenschaft (employers’ liability insurance coverage), Familienausgleichskasse (family compensation fund), Invalidenversicherung (disability insurance), Angestelltenversicherung (employees’ insurance), Arbeitslosenversicherung (unemployment insurance), Lebensversicherung (life insurance);

 

  • Feuerversicherung (fire insurance), Einbruchsversicherung (burglary insurance), Unfallversicherung (accident insurance), Haftpflichtversicherung (liability insurance), Solidaritätszuschlag (solidarity tax), Rechtsschutzversicherung (legal protection insurance), Industrie-und Handelskammer (chamber of industry and commerce);

 

  • The owner also has to pay his monthly expenses for Gas (gas heating),  Wasser (water), Elektrizität (electricity), Heizung (heating), Müllabfuhr (garbage collection), Schornsteinfeger (chimney sweep), Telefon (phone charges), Zeitungen (newspaper subscriptions), Zeitschriften (magazines), Radio- und Fernsehengebühren (quarterly payment for radio and television licensing fees), Gesellschaft für musikalische Aufführungs- und mechanische Vervielfältigungsrechte or GEMA (performing rights society), etc.

I had read somewhere that a village pub about 30kms north of here had to close its doors. Paying a monthly fee of euro 700, so his guests could watch sport shows, was no longer feasible.

If you have a dog, you also have to pay the Hundesteuer (dog license fee).

I believe we all should pay our tax with a smile. 

I tried, but they wanted cash.

Herdprämie

The word Herdprämie is a term that is often used in the media to refer to a scheme planned by the German Government to reward parents who stay at home to look after their children.

There have been several versions on this plan, with most of the ideas resulting in parents receiving a set amount of money in some form or other, which they can either keep if they stay at home to look after their children before they reach school age, or to spend on a place at a Kindergarten.

A cynical view of this is that it means paying mothers for spending more time in the kitchen, hence the Prämie (premium, ie. reward) for being at the Herd (cooker).

To hear a simple explanation and a short discussion in German, listen to the podcast:

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To hear a simple explanation and a short discussion in German, listen to the podcast:

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.


(Press the “play” button to listen to the podcast)

Download the MP3 file | Comment in the forum

Subscribe to the podcast | Listen by telephone

itunes.jpg zune.jpg

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