The German income tax law structures come in seven categories.
Income From Agriculture and Forestry
This income includes surplusses from utilisation of self-produced products from operations in agriculture, forestry, tree nurseries, vineyards and gardening, as well as operations that produce plants and plant parts using natural forces, pond farming, fish farming for lacustrian fishermen, apiculture, nomadic shepherds and seed breeding, income from hunting (if there is a contact with operations of agriculture and forestry), income from forest and forestry cooperatives and similar real communities, income from agricultural and forestry subsidiary operations.
Income from Business Enterprises
This includes income from commercial activities, such as:
- Craftsmen
- Manufacturing businesses
- Wholesale and retail
- Export and import companies
- Service sectors
Income from Self-Employment
This income includes income from so-called freelance work. Such work must be performed by persons independently and under their own responsibility. The entrepreneur acts on his own risk. Typical freelance activities are:
- Physicians
- Lawyers
- Tax consultants
- Architects
- Lecturers
Income from Employment
Income from employment is income from wages and salaries as well as other income and benefits for employment in private and public areas. Furthermore, such income includes pensions, widows and orphans pensions from earlier employments.
Income from Capital Assets
Income from capital assets comprises all remunerations from allocation of capital (money). Typical capital income includes:
- Dividends
- Interest from economisers
- Discount revenues
Income from Rent and Lease
Income from rent and lease comprises surplusses from allocation of premises and buildings and of properties, rights, etc.
Other Income
Other income includes certain income that is not defined in the other income types. This is not a collecting tank, since other income is defined precisely. Typical other income includes:
- Pension payments from the statutory pension scheme
- Repeated benefits
- Private sales transactions
