Politics · Germany · 6 hrs ago
Klingbeil plans to end paper tax returns in Germany
Germany’s Finance Minister Lars Klingbeil plans to end paper tax returns and require taxpayers to file digitally.
The proposal would extend a requirement that now mainly applies to self-employed people to employees and pensioners.
About 4.6 million returns were filed on paper for 2025, compared with 15.7 million filed electronically.
The plan would also raise the annual side-income threshold for requiring a tax return from €410 to more than €800.
Some workers could have severance payments of up to €5,000 exempted from tax if they meet conditions, including quickly taking a new job.
The proposal must still pass the cabinet, Bundestag and Bundesrat before it can take effect.
Finance Minister Lars Klingbeil plans to require employees and pensioners in Germany to file tax returns digitally, ending paper submissions.
The proposal is part of a draft tax simplification bill that includes 28 measures.
For 2025, about 15.7 million tax returns were filed electronically and 4.6 million on paper.
The ministry expects digital filings to rise to about 95 percent of all returns.
The draft also proposes raising the threshold for declaring side income and making some small severance payments tax-free under conditions.
- Who
- Finance Minister Lars Klingbeil and taxpayers in Germany, including employees and pensioners.
- What
- Klingbeil plans to end paper tax returns and require digital filing.
- When
- The proposal is in a draft bill; it has not yet been approved.
- Where
- Germany.
- Why
- The proposal is intended to simplify tax rules and reduce the administrative burden on tax offices.
This story does not have two clearly opposing sides.
Handelsblatt reported that Klingbeil planned to abolish tax classes III and V for couples.
Reports said Klingbeil’s draft bill proposes mandatory digital tax returns and other tax changes.
- Digital filings in 2025
- About 15.7 million
- Paper filings in 2025
- 4.6 million
- Expected digital share
- About 95 percent
- Side-income threshold
- Proposed increase from €410 to €800 a year
- Severance payments
- Up to €5,000 could be tax-free under conditions
2 sources
What people are saying
incentives to take up new employment as quickly as possible and, in this respect, also to relieve the social funds during the transition period