La participación de los municipios alemanes en el impuesto sobre la renta

Income tax on individuals in Germany is counted, along with VAT and corporation tax, among the taxes which are shared by or common to two or more political/territorial entities in the sense that the said entities take a share of the tax revenue. The federation, the federal states and the municipalities all take a share of income tax. The latter have a 15% share in the revenue from the said tax. This paper analyses the criteria used to divide up the resources resulting from this municipal share in income tax, at both state and municipal level. Moreover, it discusses the role played by this tax resource in municipal revenue, given that in large municipalities it represents the second most important source of resources, while in small municipalities it is the most important. Logically, this discussion takes into account the perspective of municipal autonomy, financial self-sufficiency and inter-municipal solidarity.