MOSCOW (Pakistan Point News / Sputnik - 03rd July, 2020) The German Ministry of Finance is developing a bill on 42.5 billion Euros ($48 billion) in tax relief for the period to 2024 to spur economic recovery, Handelsblatt reported on Thursday, citing the document at its disposal.
Starting January 1, 2021, the government will increase the tax-free income from 9,408 to 9,696 euros. In addition, it will boost income threshold for the top income tax rate of 42 percent from 57,052 to 57,919 euros. The maximum tax rate of 45 percent will apply to incomes exceeding 274,613 euros, instead of this year's 270,501 euros, according to the business newspaper.
At the same time, families with children will receive an extra 15 euros per child. The authorities will accordingly increase tax relief for them.
The cabinet is expected to pass the bill on July 29.
