Basic tax allowance

In order to secure the subsistence level, an allowance is taken into account when calculating the income tax rate in accordance with Section 32 a I No. 1 EStG. According to the stipulations of the Federal Constitutional Court, the amount of this basic allowance is to be based on the necessary living needs.

The basic tax-free allowance for 2005 is € 7,664. It applies to all taxpayers via the tariff regulation. In terms of tax, income that is necessary to secure the company's existence is spared.

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