Labor Union Advocates for Elimination of Tax Returns for Employees

The Deutsche Steuer-Gewerkschaft (DSTG), a prominent labor union representing tax administration employees, is advocating for the abolishment of tax return submissions for employees. The union's leader, Florian Köbler, has emphasized the need for a more streamlined tax process, calling for fewer forms, reduced bureaucratic requirements, and increased reliance on digital solutions.

According to Köbler, the current system, which necessitates extensive documentation and calculations, is burdensome for many workers. He proposes a shift towards simplified processes, suggesting that flat-rate allowances should be used instead of detailed individual assessments wherever possible. This would not only save time but also alleviate stress and reduce costs for millions of taxpayers.

Specifically, the union is urging that tax returns for employees be generated automatically, requiring only a review and potential modification from the individual. Köbler noted that such a system is not only feasible but has also been successfully implemented in countries like Austria.

In addition to employees, Köbler suggests that retirees should also be exempt from filing tax returns. Instead, he recommends that tax deductions be managed directly by pension funds, eliminating the need for retirees to navigate the complexities of tax submissions.

The current coalition government, comprising CDU, CSU, and SPD, has committed to simplifying tax regulations through categorizations, simplifications, and standardization. Their agenda includes reducing the tax return obligations for retirees as much as possible.

Furthermore, the coalition plans to gradually make the digital submission of tax returns mandatory, with an emphasis on expanding the use of pre-filled and automated tax returns for straightforward cases.

The deadline for submitting tax returns for the 2024 fiscal year is set for July 31, 2025, while individuals seeking professional tax advice have an extended deadline until April 30, 2026.

The Deutsche Steuer-Gewerkschaft serves as the union representing the interests of personnel within the tax administration sector.