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Halbeinkünfteverfahren

English translation: half-income system/half-income procedure

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Halbeinkünfteverfahren
English translation:half-income system/half-income procedure
Entered by: Dawn Montague
Options:
- Contribute to this entry
- Include in personal glossary

07:48 Mar 7, 2001
German to English translations [PRO]
Bus/Financial - Law: Taxation & Customs
German term or phrase: Halbeinkünfteverfahren
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 “.
Dawn Montague
Local time: 23:31
half-income system, half-income procedure
Explanation:
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."
Selected response from:

Vesna Zivcic
Local time: 05:31
Grading comment
Thanks!
4 KudoZ points were awarded for this answer

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Summary of answers provided
na50% dividends-received exemption
Tom Funke
nahalf-income system, half-income procedure
Vesna Zivcic
nahalf income method
Andy Lemminger


  

Answers


13 mins
half income method


Explanation:
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.


    own work experience, studies (Master of Accountancy)
    native German, own work as public accountant
Andy Lemminger
Canada
Local time: 21:31
Native speaker of: German
PRO pts in category: 24

Peer comments on this answer (and responses from the answerer)
Vesna Zivcic
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19 mins
half-income system, half-income procedure


Explanation:
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."


    Reference: http://www.bundesfinanzministerium.de/infos/taxref.pdf
    Reference: http://www.diw-berlin.de:8282/diwwbe/eb==-05/n00mai-2.html
Vesna Zivcic
Local time: 05:31
Native speaker of: Croatian
PRO pts in category: 4
Grading comment
Thanks!
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21 mins
50% dividends-received exemption


Explanation:
>>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




    see above
Tom Funke
Local time: 23:31
Native speaker of: English

Peer comments on this answer (and responses from the answerer)
Vesna Zivcic
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Changes made by editors
May 6, 2008 - Changes made by Steffen Walter:
Term asked » Halbeinkünfteverfahren
Field (specific)(none) » Law: Taxation & Customs


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