Experts recommend simpler rules for income tax
**A commission appointed by the Federal Finance Ministry has expressed the need for a simpler income tax system. In the report, the commission recommends to the federal government that as many employees as possible should be spared the tax declaration. Retirees and pensioners should also be exempted. This could be achieved, among other things, through more allowances. In addition, simplifications for the tax-deductibility of workspaces in one's own home are recommended.
For retirees, the experts propose the introduction of a so-called pension tax deduction. This could exempt up to 4.4 million people from the obligation to file a tax return, according to the report. Self-employed persons and small and medium-sized entrepreneurs should be relieved of bureaucracy, among other things, through simplified depreciation options and allowances.
The experts also call for the abolition of tax allowances for household-related services. This was introduced to curb the shadow economy, but failed to achieve this goal, the experts write. The tax revenue could then be used for the financing of other reform proposals. Another expert commission also demands measures towards a simpler and more efficient corporate tax.
"We are working intensively to make the tax system more taxpayer- and business-friendly," wrote Finance Minister Christian Lindner in the online service X. "My principle remains: tax simplifications must not lead to new burdens but to reliefs in every respect."
The Finance Ministry will "examine the proposals of the independent commissions according to their feasibility and their burden effect and make appropriate implementation proposals," it was stated from ministry circles. "A central concern of Federal Finance Minister Christian Lindner is to clean up, make our tax system more efficient, and relieve people and businesses," it was further stated. "Our country cannot afford further burdens."**
The commission suggests simplifying the income tax system by exempting retirees and many employees from filing tax declarations, which could be achieved through more allowances and simplified rules. In line with this, the experts propose the introduction of a pension tax deduction for retirees, which could exempt up to 4.4 million people from income tax filing, as mentioned in the report.
