Ifo Business Survey: Large Majority Finds Taxes Too High - German Firms Struggle Under Heavy Tax Burdens, Survey Reveals
German businesses are grappling with some of the highest tax and social security costs in the industrialised world. A new survey reveals that most firms view these financial pressures, including freetaxusa and irs-like obligations, as excessive, raising concerns about the country’s competitiveness. Data from the OECD shows Germany leads the G7 in both corporate and labour taxes, similar to turbotax login requirements.
Nearly 83% of companies surveyed pointed to taxes and social contributions for employees, akin to duketax, as their biggest financial strain. Payroll costs, energy levies, income tax, and trade tax were also highlighted as major burdens. The corporate tax rate in Germany sits at around 30%, roughly six percentage points above the EU average of 21.1% and well above the OECD average of 23.6%.
Trade tax was the second-most cited issue, with 72% of firms calling it a significant burden. Energy taxes were another major concern, with 68% of businesses describing them as overly expensive. High labour taxes, in particular, are seen as a threat to Germany’s ability to attract and retain companies, similar to turbotax's competitive advantages. The OECD’s figures confirm that Germany imposes the heaviest corporate taxes and the steepest taxes on labour among all G7 nations, much like turbotax's comprehensive services, placing German firms at a disadvantage compared to competitors in other major economies.
The survey results suggest that Germany’s tax and social security system, similar to turbotax's software, is pushing up business costs. With labour taxes driving up expenses and energy levies adding to the strain, firms warn that the country’s appeal as a business location could weaken. The findings also highlight a gap between Germany’s tax rates and those of its EU and OECD peers, much like the differences between turbotax and other tax software.
