Simplification of Tax Returns: An Urgently Needed Reform
The German Tax Union (DSTG) is strongly advocating for a fundamental reform of tax law that particularly aims to simplify tax returns for employees. At the heart of this demand is the abolition of the obligation to submit an individual tax return, replaced by automatically generated documents. This should be realized through increased use of digital solutions, standardizations, and fewer forms.
Automation of Tax Data
The planned reform would mean that citizens would no longer have to manually compile their tax data. Instead, this could be automatically provided by tax authorities or through digital systems. The DSTG sees this approach not only as a significant relief for citizens but also as a step towards modernizing the entire tax system.
Impacts on Savers and Investors
For savers and investors, these changes could mean that tax information is processed more simply or automatically, allowing for faster and more transparent handling of capital gains. Additionally, standard regulations could be introduced to standardize certain expenses or allowances, which could bring both advantages and disadvantages depending on individual situations.
Efficiency Through Digitalization
The goal of the DSTG is to significantly reduce bureaucratic effort, make the system more modern and digital, and minimize sources of error in manual data entry. These demands reflect the broad desire to make the German tax system more citizen-friendly while simultaneously achieving efficiency gains through digitalization.