https://www.proz.com/kudoz/german-to-english/bus-financial/36206-halbeink%FCnfteverfahren.html?

Glossary entry

German term or phrase:

Halbeinkünfteverfahren

English translation:

half-income system/half-income procedure

Added to glossary by Dawn Montague
Mar 7, 2001 07:48
23 yrs ago
German term

Halbeinkünfteverfahren

German to English Bus/Financial Law: Taxation & Customs
Mit der Steuerreform ändert sich in einigen Bereichen auch das bisherige Berechnungsverfahren. So müssen sich Aktienanleger vom Jahr 2002 an auf eine vollkommen neue Art der Besteuerung von Dividenden und Spekulationsgewinnen einstellen.
Das Schlüsselwort heißt:„Halbeinkünfteverfahren “.
Change log

May 6, 2008 12:17: Steffen Walter changed "Term asked" from "Halbeink�nfteverfahren" to "Halbeinkünfteverfahren" , "Field (specific)" from "(none)" to "Law: Taxation & Customs"

Proposed translations

19 mins
Selected

half-income system, half-income procedure

This is the text that can be found on the official site of Bundesfinanzministerium on tax reform:

"As regards the taxation of dividends, the full imputation system will be applicable in 2001 for the last time. From 2002 onwards the full imputation system will be replaced by the so-called half-income system to make cross-border investment within Europe more
attractive. Under this system, only half of the distributed profits of a corporation will be included in the shareholder's personal income tax base. In return, it will be no longer
necessary to credit the corporation tax paid by the company against the shareholder's income tax."

Another hit:

"As far as the taxation of distributed profits is concerned, the prevailing system - under which corporation tax paid can be set off in full against income tax dues - is to be replaced by the so-called 'half-income procedure' (Halbeinkünfteverfahren). Under this procedure the burden of corporation tax on dividends remains; only half of the value of the net dividends of corporation tax is assessed for the purposes of income tax."
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4 KudoZ points awarded for this answer. Comment: "Thanks!"
13 mins

half income method

That's a very new term that you probably won't find in any dictionary. According to the way it works I have often translated it as half income method.
Peer comment(s):

Vesna Zivcic
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21 mins

50% dividends-received exemption

>>The 50% dividends-received exemption (Halbeinkünfteverfahren) for individuals (natural persons) likewise applies in principle to foreign-source dividends. However, if the earnings being distributed are from passive sources, the exemption only applies if they have been subject to foreign taxation equal to the new German corporation tax rate (25 %).<<
http://usserve.us.kpmg.com/intlserv/intcorpt/pubs/gernews/18...

HTH Tom

Reference:

see above

Peer comment(s):

Vesna Zivcic
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