{"id":4027,"date":"2026-03-24T13:36:51","date_gmt":"2026-03-24T13:36:51","guid":{"rendered":"https:\/\/www.brasser-accounting.de\/?post_type=glossar&p=4027"},"modified":"2026-09-07T10:09:41","modified_gmt":"2026-09-07T10:09:41","slug":"income-tax","status":"publish","type":"glossar","link":"https:\/\/www.brasser-accounting.de\/en\/glossar\/lohnsteuer\/","title":{"rendered":"Income tax"},"content":{"rendered":"
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The Income tax<\/strong> is the Income tax which is levied on income from employment by deduction from wages. The employer withholds it when paying wages on behalf of the employee.<\/p>\n <\/div>\n<\/section>\n\n

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What is income tax?<\/h2>\n\n

The Wage tax is a form of collection of the Income tax. It is withheld directly from the earned wages while the employment relationship is still ongoing.<\/p>\n\n

The employee is the debtor of the Wage tax. The employer is generally responsible for carrying out the Wage tax deduction, declaring the withheld tax and paying it over to the competent Tax office.<\/p>\n\n

In the Payroll<\/a> therefore, the Wage tax appears as a tax deduction from the Remuneration.<\/p>\n<\/section>\n\n

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What determines the amount of income tax?<\/h2>\n\n

The amount of Wage tax to be withheld depends on the statutory regulations for Wage taxabzug. Relevant factors in particular are the amount and type of remuneration, the pay period and the Wage tax deduction details to be applied to the employee.<\/p>\n\n

In payroll systems, the remuneration relevant for taxation is frequently referred to as Gross taxable income<\/a> is referred to as. However, the specific Lohnsteuer calculation depends on the statutory calculation regulations and not solely on this system designation.<\/p>\n<\/section>\n\n

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What role do ELStAM play?<\/h2>\n\n

For the Lohnsteuer deduction, electronic Wage tax deduction details are generally used (ELStAM<\/a>) taken into account.<\/p>\n\n

These include, inter alia, the tax bracket, where applicable a factor, the number of child allowances, tax-free allowances or addition amounts, as well as features for church tax deduction.<\/p>\n<\/section>\n\n

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Wage tax and Income tax \u2013 what is the difference?<\/h2>\n\n

The Wage tax is not a tax independent of Income tax. It is the form in which Income tax on wages and salaries is already levied during the year.<\/p>\n\n

As part of an assessment for Income tax, the personal Income tax for the entire calendar year can then be determined. Any Wage tax already withheld will be taken into account in the process.<\/p>\n\n

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In short:<\/strong> Income tax refers to the tax on taxable income \u2013 Wage tax is its ongoing deduction from employment earnings.<\/p>\n <\/div>\n<\/section>\n\n

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Wage tax and Social security contributions \u2013 what is the difference?<\/h2>\n\n

Wage tax and Social security contributions are different deductions. Wage tax is governed by Einkommensteuer law, whereas Social security contributions are calculated in accordance with social security regulations.<\/p>\n\n

Therefore, the remuneration values relevant for tax and Social security may also differ.<\/p>\n<\/section>\n\n

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What is the Wage tax login?<\/h2>\n\n

The employer totals the Wage tax to be withheld or assumed for the respective reporting period and reports it within the framework of Wage tax login<\/a> contact the local tax office for the permanent establishment.<\/p>\n\n

The Wage tax registration is therefore to be distinguished from the Wage tax deduction for the individual employee.<\/p>\n<\/section>\n\n

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Related terms<\/h2>\n\n