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Germany's Tax Structure and System
German Basic Law
The power to impose taxes is divided between the federal government and the provinces, determined by German basic law (Taxation in Germany, 2000). Germany follows the principle of world wide taxation for individuals and also corporations (Your Tax in Germany, 2005). Non-residents are taxable only on income received from German companies. Germany also has about thirty varieties of non income taxes that are imposed on such things as lotteries, inheritance and motor vehicles (Emerson, 2004). Germany imposes very high tax rates for its residents but they also allow for large deductions compared to the United States. Many think of Germany's tax system as complex but the country has done significant restructuring to simplify its taxes. American and German citizens would consider Germany to be dissimilar from the U.S.; however, both tax systems have many similar aspects.
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Approximate Word Count: 3281
Approximate Pages: 14 (250 words per double-spaced page)

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