Corporate tax reform

Approaches and limits to a corporate tax reform develop in the context of Europeanization. The German corporate tax reform has been carried out since 1986 in extended partial reforms, taking into account the overall German conditions and the changed harmonization philosophy in the EU. The dynamic reconciliation of interests in the modern state always induces new reform requests.

The Federal Constitutional Court has drawn constitutional upper limits. They are currently being discussed anew. The EU states have adopted a code of conduct. These demarcations and the delimitation of corporate taxes themselves are not assessed uniformly. The uniform company tax, which has been discussed since the 1920s, has remained just a reform alternative to this day.
The next reform step in Germany is supposed to result in a uniform, Europe-compliant, legally neutral corporate profit tax; however, it probably remains in addition to VAT and Inheritance tax in the triad of imperfect corporate income taxes: corporate income tax, corporate income tax, Trade income tax. Regarding the reform steps see income tax reform, corporation tax reform, trade income tax reform, inheritance tax reform, reform of the value added tax, ecological tax reform, Brühl recommendations and income and corporate tax reform 2001-2005.

Lately numerous reform drafts from science and practice have been published (Karlsruhe draft, Cologne draft). The most strongly Europeanized are indirect taxes, ie value added tax and the special excise duties. the value added tax affects all companies; the special consumption taxes, on the other hand, are largely sector-dependent. The harmonization of direct taxes is intended; however, it is still at the beginning.

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