Marriage Tax Changes Proposed
German Finance Minister Lars Klingbeil wants to change how married couples pay taxes. He plans to tax new couples differently. This change is difficult to put into practice.
The German government is considering a new tax system called ‘Realsplitting’. This system would allow couples to split a certain amount of money without paying tax. Currently, a system called ‘Ehegattensplitting’ allows couples to transfer assets tax-free. The government believes this system is unfair. Critics say the new plan could be misleading. The change will affect both new and existing marriages.
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Highlights
Klingbeil Plans New Tax System
German Finance Minister Lars Klingbeil wants to replace the existing ‘Ehegattensplitting’ system.
Realsplitting Proposed by Ministry
The Finance Ministry suggests a ‘Realsplitting’ plan to allow tax-free income splitting.
Impact on Existing Marriages
The change will affect both new and existing marriages regarding income tax.
Fictitious Real Splitting Introduced
Klingbeil proposes ‘fictitious real splitting’ as an alternative to alimony splitting.
Speedy Marriage for Tax Benefit
Klingbeil suggests marrying quickly to benefit from a new tax arrangement.