PwC

Tax & Legal

EU/EEA church tax recognised as deductible


The finance ministry has put church tax paid in other EU/EEA member states on an equal footing with its German counterpart from the point of view of a deduction as an allowable personal expense.

 

Church tax paid by the members of recognised German churches is allowable as a personal deduction from taxable income. The ministry of finance has now published a decree extending this privilege to corresponding taxes paid to churches in other EU/EEA member states. The schedule to the decree lists only three such taxes, those of the Lutheran national churches of Denmark and Finland and of the Orthodox Church of Finland. However, it is open to German residents paying tax to other churches within the EU/EEA to apply for deduction; this will be permitted if the church could be recognised as entitled to claim church tax in Germany but for its lack of a German registration. The competent authorities for education and home affairs are to be involved in the decision. (AM)