Contribution to government revenue

The extractive sector generates revenue for the state at the various federal levels. The most important revenues are the taxes from general company taxation (corporate tax and personal income tax plus solidarity surcharge and trade tax), as well as mine site and extraction royalties specific to the natural resource extracted in each case. Together, these revenues generated by the extractive industry amounted to approximately €814 millions in 2022 (as of 06/2024). This represents 0.04% of total Federal Government revenue. More detailed information on this revenue can be found in Disclosed payment flows and quality assurance . Other payments are also made by the extractive sector to the state, such as leaseholds, energy and electricity taxes (see Revenues generated by the extractive industry), as well as payments relating to interventions in nature conservation legislation and water use (see Managing human intervention in nature and landscape) which are not described in this chapter.

Taxes

The sum of the above-mentioned taxes paid by the extractive industry in 2022 amounted to around €577 million (as of 06/2024). This corresponds to a proportion of around 0.03% of the state’s total income.¹ The largest amount of tax revenues is generated by trade, income and corporate taxes.

The following table shows the estimated revenues from the above taxes of the extractive industry and their share of the total tax revenue (for detailed source information see final note iv). Other payment flows not addressed in the following table are described in Revenues generated by the extractive industry and Subsidies and tax concessions.

Extraction and mine site royalties

Extraction royalties are levied by the mining authorities of the Federal States. They vary greatly, depending on the local mining activity and the fixed levy rates in the individual Federal States.

A total of €236.1 millions (€204.7 millions) in extraction royalties was collected in Germany in 2022 (2023). The amount of revenue has fluctuated significantly in some Federal States in recent years. This may have different reasons, e. g. changes in world market prices for natural resources or changes in production quantities or levy rates (for detailed source information see final note v).

Only a few Federal States publish their revenues from mine site royalties in their budgets. A summarised overview of the mine site royalties is not available. Most Federal States publish accumulated mine site and extraction revenues in their individual budgets. Their amount is significantly lower than the amount of extractive sector revenues. The revenue from the 2023 mine site royalties is only available for three Federal States: Bavaria, Brandenburg and Lower Saxony (see table 6).

Tax revenues from the natural resources sector (corporation tax, trade tax, income tax and the solidarity surcharge)

*Based on a revised database, these figures have changed slightly since 2018. From 2019 onwards, the factor stated was applied.

**Total government revenue has changed slightly due to the revision of the national accounts in August 2019.

For detailed source information see final note iv.

Extraction and minesite royalties

Data on extraction and minesite royalties​

Table: Revenue from extraction royalties paid by the extractive sector in 2017 and 2023

*Most Federal States publish accumulated mine site and extraction revenues in their individual budgets. Federal states for which individually listed revenues from mine site royalties are available are listed in Table 6 – Revenues from mine site royalties earned from 2017 to 2023.

**”Negative revenues” or refunds in Lower Saxony in 2021 result from the amendment of the Lower Saxony Ordinance on the mine site and extraction royalty of 11 February 2021, which retroactively stipulated that no extraction royalty will be levied on crude oil (Section 11) and natural gas (Section 14) from 01/01 to 31/12/2020. As a result, the payments already made for the advance declarations of quarters I to III of the 2020 collection period were reimbursed.

***The amount stated also includes income from fees for the contractual transfer of proprietary mining rights of the Federal State of North Rhine-Westphalia to third parties.

For detailed source information see final note v.

Table: Revenues from mine site royalties earned from 2017 to 2023

* “Negative revenues” or refunds in Brandenburg in 2020 and 2023 result from repayments due to retrospective recognition of eligible payments for mine site royalties from previous years and the retroactive reduction of levy rates for crude oil and natural gas.

See detailed sources here: Data on extraction and minesite royalties​. Own representation.

¹ Based on a revised database, these figures have changed slightly since 2018 (see table Tax revenues from the natural resources sector).