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- Title
Deutscher Bundestag untersucht ertragsteuerliche Vollentlastung durch Kinderbetreuungskosten ohne weiterführendes Ergebnis.
- Authors
Rennar, Thomas
- Abstract
The German Bundestag has conducted an investigation into the tax relief for childcare costs. Currently, parents can only deduct two-thirds of the costs from their income tax, up to a maximum of €4,000 per child. The investigation aimed to determine the extent of the tax revenue losses if parents could deduct the costs in full. It was found that the financial impact of child allowances for the year 2023 is estimated to be around €2.425 billion, while that of child benefits is estimated to be around €53.680 billion. The tax effects of deductibility of childcare costs according to § 10 para. 1 no. 5 of the Income Tax Act were also examined and estimated to be around €910 million for the year 2023. However, it remains unclear whether an accurate forecast is possible due to the complexity of tax law. The possibility of relief through the full or partial deduction of childcare costs remains only a possibility for the future, for now.
- Subjects
GERMANY; GERMANY. Bundestag; TAX deductions; CHILD care; INTERNAL revenue; PRICE inflation; HOUSEHOLDS; PARENTS; COST; POSSIBILITY
- Publication
FinanzRundschau, 2023, Vol 105, Issue 15, p693
- ISSN
2567-4765
- Publication type
Article
- DOI
10.9785/fr-2023-1051504