ferkel
Sep 10 2007, 8:18 pm
I will be moving to Germany in a couple of weeks and am wondering how the income tax levels are adjusted for working only a few months of 2007 in Germany. Will my percentage be the same as I will pay regularly? I will get about 3000 EUR/month and have been told to expect around 1900 EUR after tax. Will I pay the same rate of monthly pay even though my total taxable income in Germany for this year will be just around 12000 EUR?
eurovol
Sep 10 2007, 8:51 pm
You tax is based on the actual time you live here and are required to pay. You haven't lived here the whole year and so guess what?
Hutcho
Sep 11 2007, 8:20 am
Not really true. Your tax will be based also on how much you earn elsewhere before getting here. If you have worked the 9 months of the year in the UK, and have earned for example, 30,000 euros from that, you will start paying tax as if you have already earned 30 grand in Germany. This means you will start paying taxes at a higher rate. If you hadn't earned anything worldwide in the last 9 months, then you would start at 0, which means you'd get the first 6000 or so (I forget the figure) completely without tax, then the rate would start to climb up.
Mpower
Sep 14 2007, 8:38 am
Interesting response from Hutcho...which triggers another related question. If someone applied and was granted residence in Germany in early 2007 (based on marriage), but is employed in the US for the first 9 months of the year before tranferring to a job in Germany, does that individual need to pay German taxes on the US earnings (taxes on US earnings are already deducted at source)? Of course, for the US taxes the person would need to file based on worldwide income, but just wondering on the income earned prior to being employed in Germany. Does the German residency have anything to do with where and how one is taxed given the situation outlined? If so, does a letter from the employer showing effective transfer date from US to Germany resolve the issue of not havng US earnings taxed in Germany?
sharpe
Sep 14 2007, 8:44 am
I think it is valid only if you did not or will not pay tax in UK for that year. When i moved from France, i only payed tax for 1 month in Germany for that specific calendar year as i had to pay tax in France for 11 months.
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