PandaMunich

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About PandaMunich

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  • Location Munich
  • Nationality German
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  1. Option 1: Fictive unlimited tax liability (= fiktive unbeschränkte Steuerpflicht gem. §1 (3) EStG) Since you will be a person with a high total worldwide income, the German state - through Progressionsvorbehalt - will make you pay the high income tax rate that you can afford based on such a large worldwide income. The reasoning behind this is that taxation in Germany is meant as a social equaliser: the more you earn, the higher a share of it you can afford to give up to the state, to be redistributed to the less fortunate.   In your case, the German tax rate will be looked up (that is what Progressionsvorbehalt is, your other income raising your German income tax rate) based on a total yearly income of:   UK employment pension + rental profit + UK state pension - tax-free part of UK state pension (which is a percentage dictated by the year you first receive that state pension, see table in §22 Nr. 1 Satz 3 a) aa) EStG, times the pension you had in the first full calendar year after you first drew your state pension)   This high (but fair, since you can afford it) German tax rate will be applied to your German income only, i.e. to the taxable part of your state German pension:   German state pension (= gesetzliche Rente, usually paid out by DRV) -  tax-free part of German state pension (which is a percentage dictated by the year you first receive that state pension, see table in §22 Nr. 1 Satz 3 a) aa) EStG, times the pension you had in the first full calendar year after you first drew your state pension)     Option 2: limited tax liability (= beschränkte Steuerpflicht, gem. §1 (4) in conjunction with §49 (1) Nr. 7 EStG): You will pay on the taxable part of your German state pension the income tax rate that corresponds to an income of:   German state pension - tax-free part of German state pension (which is a percentage dictated by the year you first receive that state pension, see table in §22 Nr. 1 Satz 3 a) aa) EStG, times the pension you had in the first full calendar year after you first drew your state pension) + Grundfreibetrag      
  2. UK rental income on German tax returns (post-Brexit)

      That's exactly what it says, you just have to insert those words you linked to and which show the update to that section done in 2020, into article 56 (3) (za) UK Income Tax Act (they haven't inserted them yet themselves): https://www.legislation.gov.uk/ukpga/2007/3/section/56   And you get: (za) is a national of the United Kingdom or a national of an EEA state
  3. UK Inheritance - proof needed?

    Yes, that's the effect of §21 ErbStG being applied: https://www.gesetze-im-internet.de/erbstg_1974/__21.html As long as a non-Inländer leaves assets, there are no problems, since the tax credit for non-German inheritance tax is given on all assets.   The problems start when an Inländer (= someone resident in Germany, or a German who left Germany less than 5 years ago) leaves assets not listed in §121 BewG and there isn't a double taxation agreement, because then there's no German tax credit for those assets, see here:   
  4. Summary: health insurance is mandatory, all others are optional.   *******************************************************************************   Public pension insurance: Mandatory members: If you are a teacher or one of the other professions listed in §2 SGB VI, you will always have to contribute (no exemption possible) 18.6% of your profit to German public pension insurance, aka DRV - Deutsche Rentenversicherung: https://www.deutsche-rentenversicherung.de/DRV/EN/Home/home_node.html If you earn at least 5/6 (= 83,33%) of your turnover from just one client, you would normally also have to contribute 18.6% of your profit, but you can apply for an exemption for the first 3 years: https://www.toytowngermany.com/forum/topic/71297-scheinselbständigkeit-and-german-pension-system/?do=findComment&comment=2389236   Voluntary members: All others can contribute voluntarily to DRV, as much as they like, but at least: 18.6% * 450€ = 83.70€ per month  But most don't, since it's a bad investment. Well, if you are after permanent residency which necessitates 60 pension months, I would understand considering it, but otherwise, not really. Please read this attentively:    Public unemployment insurance Self-employed people do not contribute. The only exception are self-employed who had previously been employees and who opted to continue paying in.   Public health&nursing insurance As a Brit, who therefore came directly out of another EU country's public heath insurance system, you should have applied to a German public health insurer of your choice within 3 months of moving here in order to become a voluntary member (only employees or self-employed artists/authors/journalists are mandatory members), e.g. to Techniker Krankenkasse (TK): https://www.tk.de/en You will then contribute 18.5% (Techniker Krankenkasse, in 2021) of your profit for public health&nursing insurance, all the way back to the day you registered your address in Germany.   If those 3 months are already over, then I'm afraid you will have to get private health insurance, since playing the de-registration game is no longer possible for Brits. In that case, just contact john g., he's trustworthy and will set you up with private health&nursing insurance: https://www.toytowngermany.com/forum/profile/12515-john-g/ The amount you have to pay to private health insurance depends on your age/health status. But please also read this about the implications of having private health insurance: https://www.toytowngermany.com/forum/topic/316560-public-vs-private-health-insurance/?do=findComment&comment=3773685   But you will have to get either public or private health insurance, having both health and nursing insurance is obligatory in Germany.   *******************************************************************   Exception: if you are an artist or author or journalist who earns at least 3,900€ per year from this "artistic/writer" activity (and less than 5,400€ from harmful, i.e. "non-artistic/writer" activities - by the way, getting rental income or capital income are not considered "harmful", so are not a problem), you can apply to join the Künstlersozialkasse (KSK): https://www.kuenstlersozialkasse.de/fileadmin/Dokumente/Mediencenter_K%C3%BCnstler_Publizisten/Allg._Infos_u._Anmeldeunterlagen/Das_Wichtigste_zur_KSV_in_Kuerze-englische_Version_2015.pdf and will become a mandatory member of DRV and of the public health insurer of your choice (even if the 3 months are already over, in which you had to get German public health insurance after moving here from the UK and therefore from the NHS). The KSK will then pay half the 18.6% public pension and roughly half of the 18.5% (TK, 2021) public health&nursing insurance, just like an employer would, despite you being self-employed.  
  5. Taxes if house is credit free

    It's option B. These things change over time, there's a court ruling and because of it, the rules get "better" for the taxpayer.
  6. Does Insolvenzgeld rely on company's assets?

    The duty to apply for insolvency has been suspended until 31. December 2020, because of Corona, so at the moment there is no Insolvenzverschleppung: https://www.bmjv.de/DE/Themen/FokusThemen/Corona/Insolvenzantrag/Corona_Insolvenzantrag_node.html   But again: as soon as that company does apply for insolvency, you will get Insolvenzgeld for the last 3 months before the date that the company applied for insolvency.   In the meantime, you can apply to the Jobcenter for Hartz IV (= welfare) to tide you over: https://www.arbeitsagentur.de/m/corona-grundsicherung/
  7. Does Insolvenzgeld rely on company's assets?

    Yes, don't worry, Insolvenzgeld is an "insurance", the company had to pay 0.06% of your gross salary every month into it: https://de.wikipedia.org/wiki/Umlage_U3   So you will get it for sure once the company becomes "insolvent".
  8. Missed Deadline for 2019 taxes, am I screwed?

      Calm down, for Steuerberater, the filing deadline for mandatory 2019 tax returns is 28. February 2021: https://www.brutto-netto-rechner24.de/ratgeber/bis-wann-muss-ich-eine-steuererklaerung-abgeben.html
  9.   Sorry, but no. Reinvested dividends (= non-distributed dividends = thesaurierte Dividenden = ausschüttungsgleiche Erträge) always had to be declared and taxed in your German tax return: https://www.finanztip.de/indexfonds-etf/thesaurierende-fonds/
  10.   Securities lending: https://en.wikipedia.org/wiki/Securities_lending   In Germany, if a capital company (UG, GmbH, AG, ...) owns at least 10% of the stock of another company, they get the dividend from that company without having to pay Körperschaftsteuer (= the "income tax" of capital companies) on that dividend income (well, 95% of the dividend amount are exempted from tax, so they still have to pay tax on 5% of the dividend value), see §8b (4) and (3) sentence 1 KStG.   So if a company does not yet have those 10%, they "borrow" some stock before the start of the calendar year, enough to get themselves to this 10% stake limit and to then get that dividend to 95% tax-free on the dividend date. And afterwards they return the stock to the original owners.    However, the financial courts are shooting down more and more of the "Wertpapierleihe" contracts, saying the the borrowers were not the "real" economic owners of that stock at the time the dividend was paid, so they shouldn't profit from that tax-exemption: https://blog.handelsblatt.com/steuerboard/2016/01/18/wertpapierleihe-bfh-kassiert-erneut-steuergetriebenes-finanzprodukt/    
  11. Car Accident with Fahrerflucht

      If you intend to sell in a few years, no German buyer will consider these tires "new" if their production date is more than 2 years in the past, and will therefore offer less anyway: https://www.adac.de/rund-ums-fahrzeug/ausstattung-technik-zubehoer/reifen/reifenkauf/reifenalter/
  12.   Thanks for the links and the information! Yes, I understand completely, there is a German word that describes the clientele: "beratungsresistent" 
  13. Paging @engelchen   I see the following legal reasoning path:   https://www.gesetze-im-internet.de/englisch_aufenthg/englisch_aufenthg.html#p0409 Section 18c Permanent settlement permit for skilled workers (1) Skilled workers are to be granted a permanent settlement permit without the consent of the Federal Employment Agency, if 1. they have held a residence title pursuant to sections 18a, 18b or 18d for four years, 2. have a job in compliance with the requirements stipulated in sections 18a, 18b or 18d, 3. they have paid compulsory or voluntary contributions into the statutory pension insurance scheme for at least 48 months or furnish evidence of an entitlement to comparable benefits from an insurance or pension scheme or from an insurance company, and 4. they have a sufficient command of the German language, and 5. the requirements of section 9 (2) sentence 1 nos. 2, and 4 to 6, 8 and 9 are met; section 9 (2) sentences 2 to 4 and 6 applies accordingly.   --> https://www.gesetze-im-internet.de/englisch_aufenthg/englisch_aufenthg.html#p0128 Section 9 Permanent settlement permit (1) The permanent settlement permit (Niederlassungserlaubnis) is a residence title which is not limited in time. It may only be subject to a subsidiary provision in the cases which expressly permitted by this Act. Section 47 remains unaffected. (2) A foreigner is to be granted a permanent settlement permit if 1. the foreigner has held a temporary residence permit for five years, 2. the foreigner’s subsistence is secure, 3. the foreigner has paid compulsory or voluntary contributions into the statutory pension scheme for at least 60 months or furnishes evidence of an entitlement to comparable benefits from an insurance or pension scheme or from an insurance company; time off for the purposes of child care or nursing at home are to be duly taken into account, 4. there are no reasons of public safety or order which would rule out granting such a permit, taking into account the severity or the nature of the breach of public safety or order or the threat posed by the foreigner, with due regard to the duration of the foreigner’s stay to date and the existence of ties in the federal territory, 5. the foreigner is permitted to be in employment, if he or she is an employee, 6. the foreigner possesses any other permits required for the purpose of the permanent pursuit of his or her economic activity, 7. the foreigner has a sufficient command of the German language, 8. the foreigner possesses a basic knowledge of the legal and social system and the way of life in the federal territory and 9. the foreigner has sufficient living space for himself or herself and for family members living together in the same household. The requirements of sentence 1, nos. 7 and 8 are deemed to be fulfilled if the foreigner has successfully completed an integration course. These requirements are waived if the foreigner is unable to fulfil them on account of a physical or mental illness or disability. In all other cases, the requirements of sentence 1, nos. 7 and 8 may also be waived to prevent hardship. Further, the aforesaid requirements are waived if the foreigner is able to communicate verbally in the German language at a basic level and was not entitled to participate in an integration course pursuant to section 44 (3), no. 2 or was not obliged to participate in an integration course pursuant to section 44a (2), no. 3. The requirements of sentence 1, nos. 2 and 3 are also waived if the foreigner is unable to fulfil them for the reasons stated in sentence 3.   --> https://www.gesetze-im-internet.de/englisch_aufenthg/englisch_aufenthg.html#p0944 Section 44 Entitlement to attend an integration course (1) A foreigner residing in the federal territory on a permanent basis is entitled to one-time enrolment in an integration course 1. upon receiving a temporary residence permit for the first time a) for the purpose of gainful employment (sections 18a to 18d (note: 18c is included in a to d!), 19c and 21), ...   (3) The entitlement to take an integration course does not apply 1. to children, juveniles and adults who start or continue school education in the Federal Republic of Germany, 2. when the need for integration is discernibly minimal or 3. when the foreigner already possesses a sufficient command of the German language.   which in conjunction with § 4 (2) Nr. 1 a) Integrationskursverordnung: https://www.gesetze-im-internet.de/intv/__4.html usually does mean that you are regularly not entitled to attend the integration course. However, the little word "regularly" in there does in my reading allow the caseworkers the latitude to say that your case is the exception and that your "need for integration" is not clearly minimal, which they already did, see the "Verpflichtung zur Teilnahme am Integrationskurs" = "Obligation to attend the integration course".   (2) There is no entitlement to participation under subsection 1, first sentence, no. 1 if the need for integration is clearly minimal (section 44(3), first sentence, no. 2 of the Residence Act). This can regularly be assumed if: 1. a foreigner a) holds a university or Fachhochschule degree or an equivalent qualification, unless, due to a lack of language skills, he is unable to take up employment in the Federal Republic of Germany within a reasonable period of time in accordance with his qualifications, or b.) pursues a gainful activity which regularly requires a qualification under point (a), and 2. the assumption is justified that the foreigner will integrate into the economic, social and cultural life of the Federal Republic of Germany without state assistance.   (2) Ein Teilnahmeanspruch nach Absatz 1 Satz 1 Nr. 1 besteht nicht bei erkennbar geringem Integrationsbedarf (§ 44 Abs. 3 Satz 1 Nr. 2 des Aufenthaltsgesetzes). Ein solcher ist in der Regel anzunehmen, wenn 1. ein Ausländer a) einen Hochschul- oder Fachhochschulabschluss oder eine entsprechende Qualifikation besitzt, es sei denn, er kann wegen mangelnder Sprachkenntnisse innerhalb eines angemessenen Zeitraums keine seiner Qualifikation entsprechende Erwerbstätigkeit im Bundesgebiet erlaubt aufnehmen, oder b.) eine Erwerbstätigkeit ausübt, die regelmäßig eine Qualifikation nach Buchstabe a erfordert, und 2. die Annahme gerechtfertigt ist, dass sich der Ausländer ohne staatliche Hilfe in das wirtschaftliche, gesellschaftliche und kulturelle Leben der Bundesrepublik Deutschland integrieren wird.     --> https://www.gesetze-im-internet.de/englisch_aufenthg/englisch_aufenthg.html#p0966 (2) The obligation to take an integration course does not apply to foreigners 1. who are in vocational training or any other form of training or education in the federal territory, 2. who furnish evidence of attending comparable education measures in the federal territory or 3. for whom attendance on a long-term basis is not feasible or reasonable.        
  14. Facharbeit Failed

    People, people, a Facharbeit is written in school: https://de.wikipedia.org/wiki/Facharbeit This is not about an Ausbildung nor about university.   Worst-case she will have to repeat the year, but you should know that such a harsh result is usually reserved for pupils who simply copied somebody else's Facharbeit from the internet, so if that was the case, you may want to have a word with her, since it shows an underlying problem... The schools use software to detect plagiarism.
  15. KK contributions and UK military pensions

    @GaryC I wouldn't get my hopes up, military pensions are "Versorgungsbezüge", and §229 (1) Satz 2 SGB V is clear that public health insurance contributions are charged based also on non-German Versorgungsbezüge: https://www.gesetze-im-internet.de/sgb_5/__229.html Satz 1 gilt auch, wenn Leistungen dieser Art aus dem Ausland oder von einer zwischenstaatlichen oder überstaatlichen Einrichtung bezogen werden. The first sentence shall also apply if benefits of this kind are received from abroad or from an intergovernmental or supranational institution. Wikipedia definition of "Versorgungsbezüge" (look at the explicit mention of "Soldaten"): https://de.wikipedia.org/wiki/Versorgungsbez%C3%BCge