Fellow TTers,
I can't seem to find the thread for this.. My question is:
I've heard from a guy at work that if you deposit more than 10.000 Euros to your bank account, they have to announce this to Finanzamt and you have to pay taxes for it!?
Is that true?
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Bank deposits over €10k are declared to tax office
A money laundering counter-measure
No,
they report all amounts over 10000 because of money laundering laws, if you earned the money and paid tax on it you cannot be taxed twice,
they report all amounts over 10000 because of money laundering laws, if you earned the money and paid tax on it you cannot be taxed twice,
I believe this is part of an EU-wide money laundering issue. Amounts of €10,000 or more are declared by the bank to the goverment.
So high earners who get more than 10.000 a month get reported to the finanzamt every month??
Have a similar regulation in the States. I forget the amount, I think it was something like $5,000. And it only deals with cash deposits, not regular pay checks, etc.
Edit: Oops, actually amounts of 3,000 or more are internal reported on a 'suspicious activiy' report which is audited each year. single deposits or a series of deposits/transactions in amounts in excess of 10K are reported to the authorities.
Edit: Oops, actually amounts of 3,000 or more are internal reported on a 'suspicious activiy' report which is audited each year. single deposits or a series of deposits/transactions in amounts in excess of 10K are reported to the authorities.
They been doing this for a few years now, when i sold my car in UK for cash about 3 years ago and deposited the money in the bank they informed me it would be notified to the authorities.
QUOTE
So high earners who get more than 10.000 a month get reported to the finanzamt every month??
if they get paid with bundles of used notes then I guess so
When I've done it in Ireland I've been required to say where the money has come from. Sale of an asset, transfer from abroad, proceeds from brothel, that kind of thing. Here I've had phonecalls from the bank asking me if I am aware that certain sums have arrived into my account. Sadly I have never been surprised by an anonymous deposit.
QUOTE (Keydeck @ Jan 24 2006, 4:24 pm) 
Sadly I have never been surprised by an anonymous deposit.
Not even after a drunken TT night out ?
it will be notified to the authorities, that's ok!
but do you have to pay some sort of extra income tax, say if you sell your car and deposit 20 grand here to a bank? or if you get some money from your parents I dunno?..
but do you have to pay some sort of extra income tax, say if you sell your car and deposit 20 grand here to a bank? or if you get some money from your parents I dunno?..
well, depending on the source of the money, you might need to pay taxes on it. (i.e. selling your car usually requires the pymt of sales tax unless your contract states that the buyer is responsible for pymt of sales tax separate to the purchase price, money from your parents would not be considered 'income', but you could possibly be hit for gift tax depending on the amount, etc.).
Edit: well, i'm talking about US regulations here. forgot where I was for a moment, so might want to disregard my post since I'm not totally up to speed with the regulations, etc here. sales tax thing holds true so be careful of the contract (course it only matters if you get audited, i suppose).
Edit: well, i'm talking about US regulations here. forgot where I was for a moment, so might want to disregard my post since I'm not totally up to speed with the regulations, etc here. sales tax thing holds true so be careful of the contract (course it only matters if you get audited, i suppose).
QUOTE
but do you have to pay some sort of extra income tax, say if you sell your car and deposit 20 grand here to a bank? or if you get some money from your parents I dunno?..
highly unlikely. In theory maybe an income from a parent should probably be declared as an income, but I doubt anyone does that
If you were selling a used car privately and not as a business transaction it would not create any tax liability.
We have never been asked anything about it and the Finanzamt has never contacted us. The UK banks have never asked either. I did wonder though if the German govnt would want a share of it as they want a share of everything else...
Thought the limit was $10,000 in the US.
There was an episode of the Soprano's where Carmella was worried what would happen to her financially if she became a widow, and was nagging Tony to set up a pension or something. She stole cash that Tony had lying around and went into the bank to deposit it in a personal account.
Bank teller: "So, you wish to deposit $9,900 in this account"
Carmella: "Yes"
Bank teller: "You are aware that if that was a hundred dollars more I would have to report you to the IRS."
Carmella: (innocently) "Oh, is that so."
There was an episode of the Soprano's where Carmella was worried what would happen to her financially if she became a widow, and was nagging Tony to set up a pension or something. She stole cash that Tony had lying around and went into the bank to deposit it in a personal account.
Bank teller: "So, you wish to deposit $9,900 in this account"
Carmella: "Yes"
Bank teller: "You are aware that if that was a hundred dollars more I would have to report you to the IRS."
Carmella: (innocently) "Oh, is that so."
If your parents pay you money in the context of a work contract, it is taxable income. If they give you money as a gift, it is only taxable beyond a certain threshold (don't remember the exact amount, but it's a lot, something like 200,000 Euro cumulative over 10 years, separately for each parent).
QUOTE (tom_a @ Jan 24 2006, 5:10 pm)
.. something like 200,000 Euro cumulative over 10 years, separately for each parent.
wow! wish I had parents like that..
Thank you guys. Like jay once said:
"As ever, TT is a source for a rapid answer to almost any question.
Long may it thrive."
So if I take €10,000 out the bank in cash can I claim a tax refund?
QUOTE (borracuda @ Jan 24 2006, 4:00 pm)
Fellow TTers,
I can't seem to find the thread for this.. My question is:
I've heard from a guy at work that if you deposit more than 10.000 Euros to your bank account, they have to announce this to Finanzamt and you have to pay taxes for it!?
Is that true?
I can't seem to find the thread for this.. My question is:
I've heard from a guy at work that if you deposit more than 10.000 Euros to your bank account, they have to announce this to Finanzamt and you have to pay taxes for it!?
Is that true?
damn...
damn...
Any interbank transfer over €10,000 is reported to a national statistics authority who provide analysis to national and international authorities used to dedect fraud and money laundering.
Monetary gifts to German residents (even from abroad) may be taxable, depending on the size of the gift. As a guide the following are the maximum gift before tax applies:
Gift from:
Partner/Husband/Wife: €307,000
Parent: €205,000
Other person in tax class 1 (typically single people): €51,200
People in tax class 2: (typically individually taxed couples): €10,300
People in tax class 3: (typically married people): €5,200
Gifts above this level are taxed on a sliding scale from 7-50% Gifts of household good and property have different taxation applied. You can find an online calculator for monetary gifts here
YL6
Monetary gifts to German residents (even from abroad) may be taxable, depending on the size of the gift. As a guide the following are the maximum gift before tax applies:
Gift from:
Partner/Husband/Wife: €307,000
Parent: €205,000
Other person in tax class 1 (typically single people): €51,200
People in tax class 2: (typically individually taxed couples): €10,300
People in tax class 3: (typically married people): €5,200
Gifts above this level are taxed on a sliding scale from 7-50% Gifts of household good and property have different taxation applied. You can find an online calculator for monetary gifts here
YL6
QUOTE (YorkshireLad6 @ Jan 24 2006, 7:42 pm)
Monetary gifts to German residents (even from abroad) may be taxable, depending on the size of the gift. As a guide the following are the maximum gift before tax applies:
Gift from...
Gift from...
@YL6, I take it these are annual amounts?
@PES: I believe a 10 year time period applies, i.e. at any point in time you are cumulatively allowed the cited amount during the previous 10 years.
What is an inheritance is held back home, and yearly transactions are conducted (to numerous accounts, of say 40-50,000$)? Will that raise eyebrows?
Trans-national inheritance complicates things, you may need advice. Put simply, you have allowances you can take advantage for cash reciept of each year, but there may already have been a tax liability in the source country and there may be a double taxation agreement such that if you can show submission and payment of tax in the source country then there may be no liability in Germany. Presents from living donors are simply subject to yearly limits. Note that inheritance of goods (e.g. property) is also treated differently, so the question arises, if you inherit property in another country, then sell it, and bring the cash to Germany are you taxed on the property inheritance or the cash transfer? I'm afraid even I don't know the answer to this one
QUOTE (YorkshireLad6 @ Jan 25 2006, 8:31 am)
I'm afraid even I don't know the answer to this one
I'm crushed!
No double taxation on inheriance bewteen US and Germany?
Inheritance and Gift Tax for Germany
Internal German Law
Inheritance and Gift Tax for Germany
Internal German Law
QUOTE
(Erbschaft- und Schenkungsteuer)
The transfer of capital by means of inheritance or gift-giving is subject to tax. Tax liability arises either when the donor, the deceased, or the beneficiary is a resident of Germany or when certain assets in Germany are transferred. However, the latter case in particular could be subject to the provisions of a tax treaty between Germany and the country concerned. In the case of the United States, the applicable treaty is the Convention between the Federal Republic of Germany and the United States of America for the Avoidance of Double Taxation with respect to Taxes on Estates, Inheritances, and Gifts, signed on December 3, 1990. This convention is expected to be amended in fall 2000 by a protocol providing more equitable tax treatment to surviving German spouses living in the United States. (Further details will become available once the protocol has entered into force).
Inheritance tax is imposed on the transfer of property by reason of death. Tax liability does not attach to the estate itself, as it would, for example, in the case of estate taxes levied in the U.S., but to whatever assets an individual, a legal entity, or a community of joint owners receives from the estate of the deceased.
Gift tax is assessed on the transfer of property during the donor's lifetime and is intended to prevent the avoidance of inheritance tax. Property granted as a gift in the lifetime of an individual is therefore subject to taxation under the same conditions as are assets transferred upon death.
The transfer of capital by means of inheritance or gift-giving is subject to tax. Tax liability arises either when the donor, the deceased, or the beneficiary is a resident of Germany or when certain assets in Germany are transferred. However, the latter case in particular could be subject to the provisions of a tax treaty between Germany and the country concerned. In the case of the United States, the applicable treaty is the Convention between the Federal Republic of Germany and the United States of America for the Avoidance of Double Taxation with respect to Taxes on Estates, Inheritances, and Gifts, signed on December 3, 1990. This convention is expected to be amended in fall 2000 by a protocol providing more equitable tax treatment to surviving German spouses living in the United States. (Further details will become available once the protocol has entered into force).
Inheritance tax is imposed on the transfer of property by reason of death. Tax liability does not attach to the estate itself, as it would, for example, in the case of estate taxes levied in the U.S., but to whatever assets an individual, a legal entity, or a community of joint owners receives from the estate of the deceased.
Gift tax is assessed on the transfer of property during the donor's lifetime and is intended to prevent the avoidance of inheritance tax. Property granted as a gift in the lifetime of an individual is therefore subject to taxation under the same conditions as are assets transferred upon death.
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