Tax and insurance system of Germany

1.

Tax and
insurance system
of Germany
1 group

2.

Plan
1
What taxes exist in the country?
2
Who is obliged to pay taxes?
3
The country's insurance system
4
Features of country insurance
Germany

3.

What taxes exist in the country?
In a supermarket, in a cafe, at a gas station and even when
receiving a salary – we pay taxes everywhere. This is the most
important source of income for the state, thanks to which it
fulfills its tasks. Kindergartens and schools, universities and
hospitals, road construction, salaries of teachers, police officers,
firefighters and politicians – all this and much more is paid from
the state treasury. Without tax revenues, the state would not be
able to cope with all this.
There are two other reasons why taxes are levied. With the help
of taxation of harmful goods, for example, cigarettes, the state
regulates consumer behavior. Because of the excise tax on
tobacco, cigarettes in Germany are far from a cheap product and
this, in turn, may encourage someone to quit smoking. Social
justice is also promoted through taxes. The more a person earns,
the higher his taxes are.

4.

Who is obliged to pay taxes?
When we buy something, as consumers we pay value added tax
("Umsatzsteuer" or "Mehrwertsteuer"). It follows that, in principle,
everyone pays taxes. If we consider the concept of "Steuerzahler"
(taxpayer), then it usually has a narrower meaning and implies
people or companies that receive income. Everyone who earns
money in Germany pays income tax (Einkommenssteuer). For
employees, it is called "Lohnsteuer". Large companies, for
example, limited liability companies (GmbH) or joint stock
companies (AG), pay corporate income tax
(Körperschaftsteuer).What other taxes a person needs to pay
depends on his individual life circumstances. So, dog owners are
dealing with a tax for keeping an animal, car and motorcycle
owners – with a vehicle tax (KFZ-Steuer), individual
entrepreneurs – with a commercial tax.

5.

The country's insurance system
The quality of the insurance system of any country is the most
important characteristic of its level of development. It is not
surprising, therefore, that the topic of insurance and all its aspects
concern both politicians and ordinary citizens of Germany.
Without comparing the insurance system with the insurance system
in Germany, we only note that a person who has insurance here
feels a sense of security, confidence.

6.

Features of country insurance
Krankenversicherung (medical insurance) is the main one, since it is not even allowed to be in the country without it.
In Germany there are two main types of health insurance, between which there are big differences – public and
private.
Compulsory state insurance depends on income and is required for everyone who earns less than €4462.50 per
month, or €53,550 per year. Private insurance can be used, for example, by freelancers, students or people whose
annual earnings exceed the specified amount. Mandatory insurance premiums are based on income and benefits
according to needs, while private insurance is based on risk factors prescribed in the contract.
According to the German Federal Medical Association (BÄK), today state insurance funds cover about 90% of the
country's population. Depending on the specific needs, some insurance may be an addition to the mandatory policy:
Reisekrankenversicherung (tourist) or Pflegeversicherung (for the care of the sick or elderly). The first can be useful
for those who travel frequently, the second provides funds for those who need to provide long-term care for
someone from family members.