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Found 35 results

  1. I need to save my back from permanent destruction and want to get a proper office chair while I work from home. Lead times on new office chairs from Amazon are ridiculous but there are a few good offers on eBay Kleinanzeigen. Would I be able to write off the cost on my next taxes if I got the seller to write a receipt for it?
  2. Hello, this is my first year filing German / USA taxes and I could use some direction. I am a US Citizen living & working in Germany, under EU citizenship (dual citizen with an EU country & US). I earned a German salary from an employer this year and have paid taxes to Germany. Of course I need to file also in the US, but I will reduce my US tax liability to ~ 0$ by claiming the foreign earned income exclusion this year as my income is less than $100K. There are two points though that I am a bit confused on if someone could please provide some insight:   -- I have interest income from savings in a US bank of approx 500 USD. As I understand, I must report this to Germany. When I report this to Germany, it is below the 801EUR limit hence I do not pay tax on it; however, am I then to also report the same to the US and state that I paid no tax on it and then be required to pay tax to the US instead?   -- I am part of an LLC partnership in the US, my brother and I, very small business but we just use the LLC to share tax burden. Is the income/loss from this LLC reported to Germany also and added/subtracted to my German net income, or is it strictly reported in the US only? If I report a loss from the LLC in Form AUS it will reduce my German income, which lowers my taxable income and increases my German tax return, which I understand is the right way...but then how do I report this loss to the US? I already lowered my German tax with the loss, so I would expect I cannot double dip and lower my US tax also with it?    Thank you very much for the guidance.   Chris
  3. VLH effective tax calculation

    I came across this post and was expecting something like this when VLH was preparing our tax return https://www.toytowngermany.com/forum/topic/200856-filing-a-tax-return-help-on-how-to-file/?do=findComment&comment=3645586 https://www.toytowngermany.com/forum/topic/386923-vlh-took-4-months-to-prepare-tax-return-and-200-invoice-my-rights/#comment-3806916   We (my and my wife) lived in canada for first 3 months of the year (had regular salaried income and paid tax already). I found job germany, booked flight together and moved to Germany. I gave canada tax/paid declaration, all other bills and asked VLH to file Germany tax return 4 months back.   He sent me tax return draft this month 1. In draft, he didnt mentioned anything about how much tax I pad in canada already but he did enter, how much I earned in canada+germany and tax paid in germany. 2. He also split flight ticket cost and entered for me only (although its joint file application) and didnt enter any standard meal expense. Also, there was no relocation benefit from company. 3. There was another error on distance calculation which is not relavant here.   I did my research (done multiple tax return in past by myself), used steuergo as a reference and spoke to him about it.   He agreed to correct point 2 and 3. He has now entered full flight ticket cost, standard meal expenses for both person.   For point 1, he told me that germany doesnt consider for tax calculation how much I earned or paid tax for first 3 months because I was not living in germany. But for record purpose, he still need to enter canada earned income and no canada paid tax.   Is this correct? 
  4. Hello,   I recently got a little difficulty to find out how to declare some of my expenses.   I am a full-time freelancer. Sometimes, I hire other freelancers to collaborate on the jobs that I have. How do I declare these expenses? Do I declare them as a normal expense? Or is there a particular section?   I first declared it as an Intra-community service, but I realised now that this is not the right way. Anybody could enlight me on this?   Thank you. Best regards, Arthur
  5. Hallo everyone, I have a question regarding tax declaration. I am working as Wissenschaftliche Mitarbeiter in a University. Apart from my primary job, I am also registered as a PhD student. Whether the cost for my PhD study is considered as Fortbildung or Ausbildung kosten? (I completed my Masters and continuing my PhD in the same area)   
  6. Hello everyone, I will try get right to the point. Last year I had income from subrenting my apartment and I made a tax declaration and paid around 500Euros as tax from the gains. Year 2020 comes and I get a paper to pay money for 2020 (current year) before even making a tax decleration.    1.Why I get charged before the year ends? 2.When I make tax decleration for 2020 I will get the money given back automatically? or I need to report to them that I paid some extra money?   Thanks a lot for your help in advance  
  7. I am investing in mutual funds in my foreign account  in a foreign currency and I need to understand how much taxes I will be paying in germany. I am writing this post after lots of hours of googling and finding very little info about german tax system. Although, I found this thread from PandaMunich which explains very well about new taxation on mutual funds and shares. But there are few things which are still not clear for me:   1 . In that thread, it is assumed that funds are bought on 1.Jan. How the taxes are calculated if the funds are bought during the year? For example , If i buy funds' units every month using Sparplan.   2. What about currency exchange rates ? which exchange rate should i use when I am filling up my german tax forms?   3. I am thinking to use Etoro and copy portfolios which invest in forex and shares. These portfolios do intraday trading thorughout the year. In this case, how I can calculate my taxes?   4 . what are the tax rates for forex trading in germany?
  8. Dear forum members, Tax return filing deadline was Feb 2020 (wihout penalty).    My scenario is: moved to Germany from other country in 2018, Married, regular salaried employee. Provided all documents to them by Oct 2019. And there was no other documents/questions asked by them and I followed-up every months about progress but no reply. Suddenly today I get invoice of 200 euro and tax return which I need to sign and pay invoice before filing.   Also, I am not satisfied tax return file which he prepared. I think, I need second opinion with tax return.   At this point, can I not pay this tax consultant and approach other tax consultant (VLH or other agency) to get second opinion or may be file return with other? Is this ethical?    Thanks.
  9. Hi friends,   I have a peculiar situation (or so I think), and somehow due to overthinking, I have lost the ability to even find the right keywords to my problem (any hints there would also be useful). Here goes,   I have been offered a permanent job in Finland, which I'd like to pursue via remote arrangement (plus at least 1-2 weeks on-site per month). On the other hand, I am a non-EU citizen and have been living in Germany for more than 7 years (7.1 to be precise) - with Niederlassungserlaubnis, and currently in probation of another job. My wish is not to leave Germany, at least before I get my German citizenship, and even if I do, I would like to return in a few years. The key questions which came to my mind are as follows,   - Can I live in Germany on my Niederlassungserlaubnis, and simply have a Finnish contract. I presume Finland would like to tax (plus pension, etc.) the salary at default. How to stop that so that I pay taxes, health, pension over here in Germany (which is a must as I am resident here)? - If I now go to apply for my German citizenship after the probation period of the Finnish job (with valid Finnish job contract), should I foresee any problems there in the context of above? - What other options are there to operationalize the above setting, i.e. living in Germany and work in Finland situation?   ---------------------------------------- Read below, only if you have time ---------------------------------------- Other thoughts in my mind, - Can there be a short term fix for above, e.g. I stay in Germany, work for Finland, for the next 9-12 months, and then anyway have my citizenship, so things are easier? - I cannot change the Niederlassungserlaubnis (DE) to Daueraufenthalt (EU) now since currently, I am on a probation period of another job, plus they would ask me to come back in a few months and apply for citizenship anyway.  - Get a German contract from Finland, and live happily ever after   If you have answers and/or recommendations, it'd be of great help.   Thank you so much!   EDIT: Finnish company does have a wide footprint in Germany as well, and is an EU-wide and international company.
  10. I would like to know what should I (employee) and my employer should do in order to hire me. I will be working remotely but I want to keep staying in Germany for my citizenship purpose. Does anyone know/familiar with the situation? I dunno who should I ask.
  11. Tax advice for new residents from UK

    Hello all,   We are new to the group and I've not been able to find information to help us with our research before moving to Berlin.  We have savings on an investment platform which gives us a monthly income for which we pay UK tax on an annual basis.  We have been advised that as long as we pay UK tax, we will not be charged German tax - is that right? We are planning to move to Berlin and need to know what our tax liabilities will be once we have applied for residency and will be liable to German tax laws.  Any advice or recommended experts would be much appreciated.  Thank you.
  12. Consultants to the ministry of agriculture suggested to introduce a special tax on meat of 40 cent/kg which should be forwarded to farmers in order to allow them to improve the conditions under which animals are kept. Would that work? Would there be enough popular support? I´m a bit sceptical that a tax alone would help. I think they must create more awareness of the problem. Maybe it should be mandatory to depict suffering animals on the package of meat just as there are pictures e. g. of cancerous lungs on cigarette packages. Or texts like: "for the sake of allowing you to buy this Schnitzel 10 cents cheaper the piglet was castrated without anesthesia (and don´t think it´s just a quick cut - they have to squeeze out the testicles as well)".
  13. Donation to City Hall

    Hi everyone,   I want to fill my tax return and I want to declare a donation (painting on canvas - valued 300 euros) made by me to a German City Hall (Verbandsgemeindekasse).   I received a "Bestätigung über Sachzuwendungen" paper from them, stating the value of donation, their address and the mention that is for "Förderung von Kunst und Kultur".   On the respective paper is also checked: x - Die Sachzuwendung stammt nach den Angaben des Zuwendenden aus dem Privatvermögen. x - Die Zuwendung wird - von uns unmittelbar für den angegebenen Zweck verwendet   My question is: In the tax return form, to what kind of institution should I write I made the donation? Political party? Non-Profit organization? etc.   Thank you
  14. Hey folks! I am aware there are some other threads that touch on this subject, but I'm in a bit of a specific situation and would love some input. First off - I don't know much about writing invoices in Germany (or rather anywhere), as I just moved here ~1.5 years ago from the States, so please go easy on me and explain like I'm 5 (ELI5).    So here's the situation. I am currently getting my masters here in Berlin Part-time with a Student Visa, with classes half the year and working part time half the year. I have a primary job that I work under 20 hours a week throughout the year, where I pay taxes. I also have health insurance, and am paying student prices for my monthly fee. My Masters program requires us to work 12 months abroad in a field related to our studies (can be collected in pieces, e.g. 3 months here, 2 months there, 6 months there, etc.) and so I was recently offered a 1.5 month position from a NGO based in Holland where I will be working abroad (SE Asia) the end of last year. I signed the contract without even knowing/understanding that this would qualify as a freelance job, as well as the fact that students in Germany are not allowed to have a freelance job.    Fast forward to after the 1.5 months, the NGO was asking for an Invoice so I can get paid for the job. I've never written an Invoice before, so I googled a template and wrote an Invoice using my SteuerID. (I know, stupid) Within a month or so, they paid me without deducting any taxes (VAT 0%), and I began to realise the potentially horrific situation I am in. (In total in 2019, I made more than the cut-off for not paying taxes, but less than 17000euro)   Of course, I will VERY happily pay taxes, and the last thing I'd like to do is to be on bad terms with the Finanzamt/Ausländerbehörde.   Here are my questions: Now, after doing a bit of internet research, I understand that the Ausländerbehörde can grant people with Student Visas permission to take a freelance job in certain circumstances, so they can apply for a Steurnummer at the Finanzamt. Will they do so even *after* said person has already signed the contract, done the job, and gotten paid for the job? Or perhaps I don't need to tell them this detail yet?   What's my first step? Do I go to the Finanzamt and come clean and see what they suggest? Do I hire a steurberater/in? Do I make an appointment at the Ausländerbehörde to see if they will give me permission for freelance jobs? (If so, what documents do I bring?) How do I fix this? Am I totally doomed?    Also, should I contact the NGO to void my original Invoice, return the money, and wait until I receive a Steuernummer to re-write the Invoice?    Thanks for reading this far. I truly truly appreciate any/all input.   
  15. Hey Guys, I am from Australia and planning to file my first income tax returns in Germany for year 2019. I read that I can claim tax returns for double household for my house in Australia. My girlfriend still used to live in Australia and she just moved to Germany this year with me. I have flown back and forth Australia 2 times last year and ticket cost was around 800€ per trip. Can I claim this back while filling my tax return ? Also can the rent that I used to pay in Australia for my second home be claimed back ? And if so how do I submit the proof ? Is my rental agreement enough ? And also do I need anything other than flight tickets to as proof for the flight ?   Thanks in advance    
  16. Inheritance tax in the UK is a tax on the estate. In Germany IHT/gift tax is on the beneficiary. My UK mother is leaving everything to me and my UK sister. I live permanently in Germany. The amount involved exceeds the German “parent to child” allowance. Will the Finanzamt give me a credit for the IHT paid in the UK when calculating the German tax due? My Steuerberater is not prepared to commit himself!  
  17. Hello,   my wife just moved to Germany, I am switching from tax class I to tax class 3 for me (and assigning her for 5 respectively).   However, while filling the tax class in section 15 of the form ''steuerklassewechsel bei ehegatten'', it asks what tax combination do we have now. and no option states tax class I.   what should I fill in this case?   Thanks,   -CMA
  18. tax class switch

    Hello All,   I live in NRW, My wife arrived in Germany on a family reunion visa. she has made her "Anmeldung" and now its time to change my tax class.   I am currently in tax class I and want to change to Class 3 for me and 5 for her, since:    - I am employed    - She has no income    - This would grant me less tax on my salary.   So, can someone help me with the process?   I know I should fill the  Steuerklassenwechsel  form, sign it both and send it to the finanzamt. However, are there any missing steps? I'm not sure if I should do an "Umeldung" first to change my status from single to married on my "Aufenhaltstitel" or there is something else missing? Also, when would the finanzamt give me a confirmation of my tax class change so I could give it to my employer?   Thanks in advance.  
  19. Let me preface by saying that I've checked out the wiki and previous threads for this, and am either finding no answers, or very ambiguous ones. Here's the quick situation:   -I live in Germany, but still have student loans in the United States that I am paying off monthly. -These amounts are rather high (around 5600 dollars last year), and in the US, I can declare these loan interest payments on my taxes in the form of a 1098-E form from the bank. The exact amount that I'm able to deduct (since there is a limit) seems to vary year by year, but I am always able to deduct at least some of it. -The yearly amount I pay on this is around 10-15% of my annual income, so this is obviously going to have a major influence on my taxes owed. -I provided my Steuerberater with the 1098-E forms as proof of these payments and their amounts.   My Steuerberater just prepared by Einkommenssteuererklärung for me, but seems not to have included this information under "Aufwendungen für die eigene Berufsausbildung" or under "andere außergewöhnliche Belastungen". As a result, I think the Steuererklärung provides and incomplete an incorrect picture for the Finanzamt. Also worth noting that during this time I was working as self-employed, so my Steuererklärung also factors in other cost-of-business items (rent, insurance, travel, etc.)   Does anyone have experience with this? I've already emailed my Steuerberater and am waiting on a response... if the payments weren't such a massive part of my yearly income I would be a little less concerned, but as it stands this will have dramatic consequences for the amount of tax I am paying.   Edit: and to reference my earlier search: the German tax page on the TT wiki says that student loan payments for degrees can be deducted, but other googling apparently says it cannot, or is hazy.
  20. Income tax declaration 2018

    Time for tax fun!   I'll get us kicked off.   How can I get the figures for the "Nebenkosten" if I've lost the original letter and my landlord company is a right old shower?   Similar question in case the answer is "check your bank statements" - what if I only get these online, and the stupid banking app only shows a short time span?
  21. (I posted this in the Business forum which doesn't seem to have as many people, and couldn't figure out how to move it here.) Hi, I should first say I am planning to talk to a tax advisor about this but wondered if anyone here could please shed any light so I can be asking the right questions.   I've been trying to better understand what qualifies as a Permanent Establishment for tax purposes in Germany. I'm from the UK and live and freelance in Berlin, but will soon be forming a limited company with a colleague who lives in UK, splitting shares 50/50. The company designs, manufactures and sells an audio hardware product across Europe and the world. The technical design work is mainly carried out by contractors in Bulgaria and the manufacturing and probably warehousing will also be in Eastern Europe. Meaning the only presence of the company here in Germany is me, one of the 2 founders, with the other staying based in London. The Estonian OÜ looks appealing as you can leave all profits in the business at the end of the year without being taxed, which would be really helpful for a hardware startup that has to pay large sums for manufacturing. It also appears to have relatively hassle-free setup. I'm concerned that it would be considered a permanent establishment in Germany as one half of the founders is living here. My questions: 1) What actually qualifies as permanent establishment in Germany? I understand if it is a sole founder living here then it is essentially a German company, but if it is only one founder here then what? 2) If it is a permanent establishment, does that mean 100% of the company profit is liable for taxation in Germany? Thanks in advance.
  22. Hi, I should first say I am planning to talk to a tax advisor about this but wondered if anyone here could please shed any light so I can be asking the right questions.   I've been trying to better understand what qualifies as a Permanent Establishment for tax purposes in Germany. I'm from the UK and live and freelance in Berlin, but will soon be forming a limited company with a colleague who lives in UK, splitting shares 50/50. The company designs, manufactures and sells an audio hardware product across Europe and the world. The technical design work is mainly carried out by contractors in Bulgaria and the manufacturing and probably warehousing will also be in Eastern Europe. Meaning the only presence of the company here in Germany is me, one of the 2 founders, with the other staying based in London. The Estonian OÜ looks appealing as you can leave all profits in the business at the end of the year without being taxed, which would be really helpful for a hardware startup that has to pay large sums for manufacturing. It also appears to have relatively hassle-free setup. I'm concerned that it would be considered a permanent establishment in Germany as one half of the founders is living here.  My questions: 1) What actually qualifies as permanent establishment in Germany? I get if it is a sole founder living here then it is essentially a German company, but if it is only one founder here then what? 2) If it is a permanent establishment, does that mean 100% of the company profit is liable for taxation in Germany? Thanks in advance.  
  23. Second Income and Tax Question

    Hello All,    After searching the forum and failed to find similar situation, I am writing this question.    I am a foreigner (non-EU citizen), working full time in Berlin and hold a Blue Card Visa. I recently applied for "Niederlassungserlaubnis" and is still in progress. I am married and my wife is not working; so we have the tax classes 3 and 5.    Meanwhile, I got permission to start working as a freelance photographer from my current employer and the terms are added to my contract.  My questions are following:  1. Is there a limit for my second income? 2. I currently use joint (my wife and I) Tax ID for the second income. Is this the right way? 3. If I have to register/get a different permission from the government for exceeding the limits of second income, what would that be?   My second income is more than 1500EUR/month.    Looking forward for your advice. Thanks in advance!   Best Regards,  Jack
  24. Probably because my German is very limited, I've done quite some research with conflicting results on this topic...   I discovered that my company would make a small monthly contribution if I open a company Pensionskasse account even if I don't contribute anything. So obviously I joined our Pensionskasse coz there's nothing to lose. Now I found out that my own contribution to Pensionskasse can be tax exempt to a certain amount, so I want to benefit from this policy. Problem: I can't find the max amount I can declare to be exempted... All the numbers I found in English are different. I assume it's because the number changes every year? Can anyone please tell me what this upper limit is for 2019/2020 and where to find it in German?   While doing this research, I found some claim that contributions to health insurance are 100% tax-deductible. But I thought you can only have one health insurance either private or public? Does this mean that I can have my statutory health and care insurances with Barme or TK for instance and then still have a supplementary one on top of that?   I'm member of a sociopolitical Verein and the president told me that my Mitgliedsbeitrag is tax-deductible. I also donate to causes dear to my heart and they all gave me invoices saying these donations could be declared for tax deduction. If I understood correctly, the upper limit for this type of deduction is 20% of my income. Question: is there a total tax deduction limit in Germany? Like, say, Pensionskasse and health/care insurance contribution-induced deduction plus donation-induced deduction plus ... plus ... cannot exceed a certain number or percentage of my income?   Thanks a lot :-)
  25. Hello everyone,   I have a question about moving to Germany part way through a tax year, and tax liability on earlier income.   My earlier assumption was that if I became resident in Germany part way through a tax year, I would become liable for German taxes on my entire worldwide income for the year, including any income that arose before I moved.    However (if I have interpreted the threads that I have read on this forum correctly) the reality is that I would not be liable for German taxes on the earlier income, but the amount of that income would be taken into account in calculating the progressive tax rate I would then pay for the rest of the calendar year.   Have I understood this correctly? Are they are any 'gotchas' I should know about, such as the dates involved (such as for instance receiving income in January, and then moving to Germany in February) or certain types of income that this doesn't apply to? Does anyone have a link to an official resource that discusses this?   Thanks so much if someone could let me know!