by Johannes Fiala, lawyer
Early tax reform puts more money in the budget coffers. Those who file their tax returns at the end of the year can expect to receive more money. You can insist on a company pension plan with your employer and thus compensate for low pension payments in the future.
Relief through tax reform In 2004, wage and income taxes are to fall by an average of 10 percent. The lower the income, the higher the relief for the citizen. In 2003, a married couple with two children pays 1,342 euros in income tax (including the solidarity surcharge) on an income of 40,000 euros (after offsetting child benefit). In 2004, this will be only 636 euro, i.e. less than half. In 2003, a single person without children still pays 5,681 euros in income tax (including the solidarity surcharge) on an income of 30,000 euros. In 2004, the figure will be only 5,114 euros. This means a relief in the order of 10% less tax.
Tax return often pays Who gets only his salary and perhaps a few capital gains in addition, can go for low fees to the Lohnsteuerhilfeverein. The path is often worthwhile and can result in significant tax refunds. The club’s consultant can usually see at a glance what is important.
Set up a company pension scheme Make a pact with your boss to save on taxes and social security: If you use part of your salary to accumulate assets via a company pension scheme (e.g. direct insurance, provident fund), you will save hard cash. This way you can get a supplementary pension. If you can’t cope with the tax forms yourself, it’s best to seek advice. In a conversation, further possibilities for tax savings can often be clarified.