Tax information for past, current, and future employees of companies in Germany
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…
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…
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…
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…
The “Lohnsteuerkarte” tax card was disposed at the beginning of 2013 and replaced by the “ElektronischeLohnsteuerAbzugsMerkmale” (ELStAM). ELStAM contains information whether you are married, what tax class you are in, whether you have children and whether you are paying church tax. Each employer has monthly access to this information to be able to work out…
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…
If you are a tax resident outside of Germany while you are working in Germany, stay in Germany for less than 183 days, and get paid by your non-German employer you will most likely not have to get involved with German taxes at all (some exceptions may apply). Whether the 183 days are counted during…
The most frequent situation we come across for the purposes of getting German pension contributions refunded is the following: – You have worked in Germany as a regular employee for less than 60 months – You have paid into the German pension system during this time – You do not hold an EU citizenship – You…
Income tax is paid by employees on a monthly basis at the source through a withholding mechanism. Self employed individuals need to make a projection of their income for the tax year. Based on this projected figure, the tax office will work out a preliminary tax bill. This tax bill is then paid in four…
Is Foreign Income Taxed in Germany? If you live and work in Germany you are usually taxable in Germany on your foreign income worldwide. All your income needs to be reported to the German authorities. If you have income outside of Germany the Double Taxation Treaty between Germany and the country where your income comes from…