Zinsbereinigung bei der Dualen Einkommensteuer

Against the backdrop of international tax competition, corporate and investment income taxation has been gradually diverging from its original principles during the past years. In the last comprehensive reform in 2008/2009, individual elements of a dual income tax were implemented. Dominik Rumpf analyzes the extensive effects of this mixed system. Some of the main disadvantages are that equity financing is affected adversely in comparison to outside financing and that there is considerable potential for tax planning. The notional interest deduction on nominal capital and capital reserves is a suggestion for reform which would make it possible to continue on the current path towards a dual income tax. Compared to other options, it is characterized by its relatively small loss of tax revenues and its advantageous effects on international tax competition.