Gewinneinkünfte und Überschusseinkünfte

English translation: Definition required

11:30 May 28, 2019
German to English translations [PRO]
Bus/Financial - Law: Taxation & Customs
German term or phrase: Gewinneinkünfte und Überschusseinkünfte
Dear all,

I am in the midst of translating a document relating to German income tax law, which discusses the seven different times of income under the EStG, and the subsequent classification of these seven types into two categories, "Gewinneinkünfte und Überschusseinkünfte". There's an "official" translation of the seven categories on the Bundeszentralamt fuer Steuern's website, but I can't find anything that refers to these two overarching terms. Would anyone have any suggestions? "Profit income" and "surplus income" don't seem particularly satisfactory to me!

Seven categories, for reference:
https://www.steuerliches-info-center.de/EN/SteuerrechtFuerIn...
Jennifer Caisley
United Kingdom
Local time: 04:48
English translation:Definition required
Explanation:
As the distinction between the two types of income rests solely on the source of the income, and no such distinction is made in Anglo/American systems, the only way to "translate" them is to provide a definition.

Gewinneinkünfte = profits from agriculture, forestry, trade, and self-employment.
An alternative option is "income from commercial operations, independent personal services, or agriculture and forestry

Überschussinkünfte = Überschuss der Einnahmen über die Werbungskosten (excess of receipts over income-related expenses)
Alternatively: profits from employment, investments, rental and lease income and other income within the meaning of section 22 EStG

--------------------------------------------------
Note added at 38 mins (2019-05-28 12:08:41 GMT)
--------------------------------------------------

Looking back in my TM, I found an old (2007) entry where I translated Gewinneinkünfte as "income taxed as trade profits". I would still go with my longer explanation above.
Selected response from:

Ted Wozniak
United States
Local time: 23:48
Grading comment
Thank you, Ted, for this really helpful clarification - I did go for a longer, explanation-based translation in the end, thanks to your advice!
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +4Definition required
Ted Wozniak
5retained earnings and surplus income
Cillie Swart
2 -1(UK-approx.) Schedule D vs. Schedules A, (old system PAYE) E + F
Adrian MM.


Discussion entries: 4





  

Answers


18 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +4
Definition required


Explanation:
As the distinction between the two types of income rests solely on the source of the income, and no such distinction is made in Anglo/American systems, the only way to "translate" them is to provide a definition.

Gewinneinkünfte = profits from agriculture, forestry, trade, and self-employment.
An alternative option is "income from commercial operations, independent personal services, or agriculture and forestry

Überschussinkünfte = Überschuss der Einnahmen über die Werbungskosten (excess of receipts over income-related expenses)
Alternatively: profits from employment, investments, rental and lease income and other income within the meaning of section 22 EStG

--------------------------------------------------
Note added at 38 mins (2019-05-28 12:08:41 GMT)
--------------------------------------------------

Looking back in my TM, I found an old (2007) entry where I translated Gewinneinkünfte as "income taxed as trade profits". I would still go with my longer explanation above.

Ted Wozniak
United States
Local time: 23:48
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 138
Grading comment
Thank you, Ted, for this really helpful clarification - I did go for a longer, explanation-based translation in the end, thanks to your advice!
Notes to answerer
Asker: Thank you so much - this has put my mind at rest that I've not overlooked any kind of "official" English version of these two terms!


Peer comments on this answer (and responses from the answerer)
agree  writeaway
1 hr

agree  philgoddard: Hi from Pensacola! Drop in if you're passing...
2 hrs
  -> Next time we ever drive to Ft Lauderdale.

agree  RobinB: See my discussion entry.
2 hrs

agree  Steffen Walter
4 hrs
Login to enter a peer comment (or grade)

2 hrs   confidence: Answerer confidence 5/5
retained earnings and surplus income


Explanation:
Income tax terms


    Reference: http://www.linguee.com
Cillie Swart
South Africa
Local time: 06:48
Native speaker of: Native in EnglishEnglish
Notes to answerer
Asker: Thanks for suggesting these terms! I believe "retained earnings" has a specific definition in accounting (to do with net company income less dividends) that doesn't quite work in an income tax context, but this has given me something to think about!


Peer comments on this answer (and responses from the answerer)
neutral  writeaway: extremely convincing refs .... not
1 min

neutral  Birgit Gläser: retained earnings are Gewinnrücklagen in German, different concept
19 hrs
Login to enter a peer comment (or grade)

9 hrs   confidence: Answerer confidence 2/5Answerer confidence 2/5 peer agreement (net): -1
(UK-approx.) Schedule D vs. Schedules A, (old system PAYE) E + F


Explanation:
I can hear the howls of protest alread, but a 'short way round' might feasibly be to tie up with UK Schedular cases. A bit suprising that no one else seems to have mentioned this categoris/zation, even if a 'red herring'.

UK-approximated Tax Schedules D (Cases I-V) and Schedules A , D (case VI) + F

The Schedules
Scope
Schedule A Income from UK land
Schedule D Taxable income not falling within another Schedule
Schedule F Income from UK dividends
Chargeable gains Gains as defined by legislation that are not taxed as income
CFC charge Profits made by controlled foreign companies where no exemption applies

Cases of Schedule D

Schedule D is itself divided into a number of cases:
Scope
Case I Profits from trades, including farming
Case II Profits from professions and vocations/merged in 2003 with Schedule E - Pay As You Earn
Case III Interest and annual payments etc., not taxed at source
Case IV Income from overseas securities (debentures, mortgages etc.)
Case V Income from overseas possessions (property, shares etc.)
Case VI Miscellaneous profits not otherwise chargeable under Schedule D or any other Schedule (e.g. income from furnished lettings)


    Reference: http://en.wikipedia.org/wiki/Schedular_system_of_taxation
    Reference: http://news.bbc.co.uk/2/hi/business/2968902.stm
Adrian MM.
Austria
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 16
Notes to answerer
Asker: This is really interesting - I hadn't considered the similarities to the UK tax schedule! Sadly my text was for a global readership so this kind of analogy might cause more, rather than less, confusion, but I've filed it away for future reference/use in a UK-specific context!


Peer comments on this answer (and responses from the answerer)
disagree  RobinB: But these are not comparable, Adrian. And since when would we translate using "sort-of-equivalents" in another country? It's like translating Bundestag as "HoC" and Bundesrat as "HoL".//Actually the German model was based more on the US system.
5 hrs
  -> OK, Robin, but that near-equivalents argument becomes tenuous in view of Germany's post-WW II bicameralism predicated on UK's parliamentary system & of the Finanzwesen's pick & choose of the UK's Schedular income categories disguised with 2 odd misnomers.
Login to enter a peer comment (or grade)



Login or register (free and only takes a few minutes) to participate in this question.

You will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them). Participation is free and the site has a strict confidentiality policy.

KudoZ™ translation help

The KudoZ network provides a framework for translators and others to assist each other with translations or explanations of terms and short phrases.


See also:
Term search
  • All of ProZ.com
  • Term search
  • Jobs
  • Forums
  • Multiple search