Germany introduced the key tax changes in 2013

Finally, in 2013 installments on pension insurance for workers will decrease from 19,6 % to 18,9 %, and the rate of an installment for the insurance established by the law will grow up on 0,1 %, from 1,95 % to 2,05 %.

The German Ministry of Finance has published the review of key changes in the tax legislation of the country since January, 1st, 2013.


From this date the new electronic system of tracking the tax to the income (ELStAM) replaces out-of-date paper wages tax cards that «substantially to advance communication between employers, workers and financial officials». The new system will allow the worker to store and move the tax data in electronic form, including birth grants, tax classification and religious preferences.

The electronic system of tracking the tax to the income is directed on simplification of existing system, reduction of paper work, both for businessmen, and for tax service.

Employers can use old paper system till the end of 2013 that they haven't been overloaded"because of transition to new system, and can choose, move all data about workers immediately, or make it gradually. Nevertheless, not later than December, 2013 all workers on hiring should start to use system ELStAM.

To provide, that Germany became the leading market of electromobiles, the government has decided to expand initiatives for promotion of purchasing of electric vehicles harmless to environment. Government extended the existing tax exemption for cars exclusively for electric vehicles, including commercial vehicles, cars and motorcycles, as long as they are powered by battery or fuel cell. Tax exemption will apply for ten years.

This measure is applied backdating to all electromobiles since May, 18th, 2011. However the electromobiles registered since January, 1st, 2016, can use five years' exemption.

Other key tax changes in 2013 include entering of the simplified system of collection of taxes for married couples this year. In the future married couples can choose between representation of the joint or personal tax appraisal, replacing a separate mode of the tax appraisal since 2013. Besides, procedure has been improved and modernized, and handling time is reduced.