Our blog has basic information to get you started to understand tax items related to your situation.
Annual income of less than 9,984 € is not taxed at all. Income tax starts with 14.00% and gradually goes up to 42.00% (top tax rate applies to taxable income of more than 58,597 €). The amounts double for married couples filing joint returns. As your income goes up, the tax rates go up. This…
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The year of your arrival in Germany as well as the year of your departure are somewhat unusual if you arrive or leave at some point during the year. Such a split income and tax year will typically require you to file a tax return as your taxes are always calculated based on your full…
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If you work only for part of the year in Germany and are leaving Germany before the end of the tax year (the calendar year is the tax year) you have to file a tax return in Germany for this particular year irrespective of any other factors. As a rule of thumb you can get…
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In most cases getting married is relevant for tax purposes. Married couples can file a joint income tax return (they can also opt to file separate returns and they can exercise this option from year to year). If one spouse is on a higher level of income than the other spouse it is beneficial to…
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To get started with German Freelancer taxes, you need to register with your local Finanzamt as “selbständig”. You can find the required registration form at: https://www.formulare-bfinv.de/ Your Finanzamt will then issue a tax number for you. Your Finanzamt will ask you to submit monthly VAT returns (unless you are registered as a “Kleinunternehmer”).You will have…
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On December 20th, 2017, the United States Congress approved sweeping new changes to the US Tax Code. While many of the changes impact taxes for the 2018-2019 tax filing season, there are a number of changes that took effect even before. As an expat, understanding these upcoming changes is the key to help you better…
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Your Finanzamt will ask you to initially submit monthly VAT returns for your VAT taxes (unless you are registered as a “Kleinunternehmer” – a micro business).You will have to report your monthly VAT liability to the Finanzamt and make VAT payments accordingly. The reporting (“Umsatzsteuervoranmeldung”) is done electronically via https://www.elster.de/eportal/start where you also find the relevant forms. At…
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How to Register as a Freelancer/Contractor? You need to register with your local Finanzamt as “selbständig”. You can find the required registration form at: https://www.formulare-bfinv.de Your Finanzamt will then issue a tax number for you. The registration is not as complicated as the 8 page form would suggest. You need to provide information on your…
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If you did not register as “Kleinunternehmer” you will in most cases have to show VAT on invoices if your customer is located in Germany. The most frequent domestic case we come across in which a VAT exemption applies is teaching income (if your customer is VAT exempt). If you provide a consulting service to…
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