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Germany’s Finance Ministry is considering abolishing the combination of tax classes III and V for married couples and replacing it with an automated system that allocates wage-tax withholdings according to each partner’s income, as part of preparations for the 2027 Tax Simplification Act. The proposal aims to bring monthly withholdings closer to each partner’s actual share and could spare many couples from filing tax returns, without in itself changing their total income-tax liability. The proposal is still under discussion, amid opposition including from the Bavarian government, and no final decision has been made.
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