2004 Income tax in two countries

Hello,

I moved to Germany from Canada in September 2004. The Finanzamt is asking me to tell them what income I have made outside of Germany before that date. The thing is: I've already paid income tax in Canada on my Canadian income (it was deducted from my salary every month). I am not going to pay income tax twice on that, no way!

Any ideas what I should tell them? Any input welcome.

Canada-Germany Income Tax Agreement

Short answer: Tell them the truth

The tax you paid in Canada will be credited against your German tax liability and vice-versa. You do have to file twice though and will essentially end up paying the higher of the two tax rates. In the case of Canada, I'm not exactly sure which is higher.

Having only worked half a year in Germany, you're probably due a big refund. Don't sweat it.

They can only tax the income that you made while residing in Germany. They want to know how much you made before, so they can estimate how much you make annually and set you in the proper tax bracket.

While you are away, you'll probably have to file income tax statements in both Germany and Canada. That's how the US works anyway. That's where the tax credit comes in (i.e., you get credit for taxes paid in Germany on your Canadian return). Although the tax rate in Canada is pretty high, I think Germany's is higher, so you should end up paying nothing in Canada.