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Found 9 results

  1. Hello everybody! Hope you're having a lovely evening! I'm a freelancer based in Berlin. I'm preparing my 2021 tax return and have questions about filling in the Anlage EÜR form in Elster. 1) Bezeichnung In Umsatzsteuerlicher Kleinunternehmer Betriebseinnahmen als umsatzsteuerlicher Kleinunternehmer (nach § 19 Absatz 1 UStG) (line 11) What am I supposed to describe in Bezeichnung? Should I enter my invoice number line by line or just enter my yearly operating income (total) here?   2) Software license If I've been renting software licenses (more than two) every month,  a. Which form should I fill in the 4-2. Betriebsausgaben? b. How detailed do I need to be when entering info in Elster here? As the question 1, should I typed the total yearly license fee or should I separate each one?   3) Internet I would like to know how much % I can use for declaring tax here?   I'd love to hear a response from anyone. Thank you very much!!
  2. I would kindly like to know the taxation law, in Germany (eg. in NRW), on the following.   I am married, naturalized German citizen, and wife British national.   I would like to know, if my mother from abroad sends me money (e.g. 100k €) and similarly my wife's parents also from abroad send her money (e.g. 100k €), would we be required as per German law to pay taxes on this 200 k €?   Obviously, this amount would not be treated as something we have earned through some work, but given by our parents (still alive) as gift/inheritance.   Our intent is to utilize that amount towards building a house here. So would like to know if there would be any tax charged by Germany and if yes, how much approx. would that be?   Of course, our parents have paid taxes on this amount in the home country and it be a bank-to-bank transfer whenever performed.   Thanks.         
  3. There is something that I cannot get my head around. I had to submit two parallel tax returns for UK (2020-21 tax year) and Germany (2020 tax year), because I was a tax resident in the UK for that period (by number of days) and I was also partially resident in Germany (which required it anyway). All was well with that. But I paid voluntary Class 2 national insurance contributions for the UK 2020-21 tax year on 3 December 2021 (due by 31 January 2022) after I had filled in my German tax return for 2020 in September 2021 (because the German system was actually more straightforward and I got it done first). Now I am filling in just my German 2021 tax return (although I have asked to pay Class 2 NI contributions in the UK again for 2021-22, but have not heard back). Confusion aside, my main question is this: is there anywhere on the German tax declaration form (I am using ELSTER), such as Beiträge zur ausländischen gesetzlichen oder privaten Kranken- und Pflegeversicherung, that I should add the information about voluntary Class 2 contributions? As I wrote above, I paid them on 3 December 2021 and this related to the 2020-21 tax year. And, second question, to which German tax year would it relate anyway, when the two do not quite coincide (my guess would be UK 2020-21 = German 2020, but not sure)? Is there anyone that has also had this conundrum? My main concern is not so much the sums, but just making sure that I am faithfully reporting everything going on in my life to the Finanzamt.  
  4. Hello, I am a UK citizen resident in Germany. My mother passed away recently and as the sole beneficiary of her estate, I stand to inherit around 300k GBP  and a house worth 330k GBP. So approx 630k. For my situation, my tax free allowance in the UK is 1m GBP. Therefore I do not need to pay any inheritance tax.   It just occured to me however I may need to pay inheritance tax in Germany. I found the below link and it would be 15% on everything above 400k €. https://de.wikipedia.org/wiki/Erbschaftsteuer_in_Deutschland   I also found some threads on here, but considering Brexit, I'm not sure how valid the information is.   So I am hoping to get some advice on what I need to do with regards to calculating and paying the correct taxes in Germany.   The house was purchased in 1974, so I assume it will not be subject to capital gains tax when I sell it.   Cheers
  5. Hello,   I went on the forum to research quite a bit if this scenario had already been answered, but I always found parts of it in multiple posts. Hence, I simply would like to consolidate the questions and ask the kind people on the forum for their opinions   My Situation: I'm a non-EU expat residing in Germany for 5 years and 4 months now. I already possess a Niederlassungserlaubnis for 2 years. For more than a year, I'm living with my long-term gf in Hamburg. I mostly communicate with the Hamburg Welcome Center, due to my application qualifying towards their upper income limit.   Everything was going fine and dandy until I decided (due to personal reasons) to quit my (software engineer) job and try my hand at freelancing and focusing on clients outside the EU. Now lately, I've been thinking freelancing from Portugal (better Non-Habitual Resident tax rates and could enjoy nicer weather) for 2 years or so, effectively juggling my time between Portugal (7 months/tax-resident) and Germany (5 months). And since my gf still has University, we'd keep the rented apartment (both our names are on the agreement) and she'd be living in Hamburg, while both of us juggle between two locations depending upon the situation. From my side, I'd be majorly in Portugal, and she'd be in Germany.   The fact remains that I'll most definitely return to Germany and with a high probability reside here with my gf (and maybe later Frau). As such, I'd prefer not to make too many bureaucratic changes that might affect the latter part of my life. Some things being, my bank accounts, insurance provider, internet contract, etc. Ideally, I would've just like to leave the things/payments, etc. as is here, be a tax resident in Portugal for 2 years, and resume them after 2 years - but that's Utopia - if one is not a citizen and all.   Here comes the first issue - the Tax office - Would they be sufficiently convinced that I'm not longer a tax resident if I still have all my contracts here running? (I'm not using them for most part of the year) but wouldn't want to switch anything since my gf would still be living in the apartment.   And the second issue - The ABH - if I'm to do an Abmeldung, how would that affect my life, once I plan on re-registering in 2 years. From what I read on other posts, the Abmeldung is a necessity to not be a tax resident anymore. I'm planning to get a Daueraufenthalt-EU (I qualify on the conditions) just so at the very least it doesn't expire until 6 years and I still have the possibility to lead a "normal" life flying back and forth. However, if I understand correctly, once I'm not a tax resident of Germany, the Naturalization "clock" would be reset to 0, and I'd have to wait the 8 year (possibly 6 since I'd have German B2 by then) stipulated period before being eligible for Naturalization. I do have to add that given a choice, I'd probably opt to forego the Naturalization - already got used to living a "different" Ausländer life in Germany - mildly annoying, but can live with it. So still effectively possessing my Daueraufenthalt-EU once I become a tax resident in Germany.   Are there any gotchas that I should look out for in those two scenarios? And/Or are there any suggestions one would like to make, possibly even point to a suitable lawyer regarding this.   Thanks for reading and appreciate the replies!
  6. Last year, I used the FEIE to exclude my income when filing my US taxes. At the end of 2021, I thought I would make a contribution to my roth IRA ($1500), forgetting that for 2021, all of my income was German-based (in the prior year, I had a mix of US and German income). Now, my googling indicates that if I claim the foreign tax credit instead of FEIE, I can report taxable income and my contribution is valid.    However, I now received my Steuererklaerung from my accountant, and it seems I will receive the full amount I was taxed in 2021, since my income was rather low ~15000EUR and I had a lot of deductible expenses. It seems then, that I cannot claim the FTC, correct? I'm basing this on p54 ( 2021 Publication 54 (irs.gov) ), which states " The amount for which you can claim a credit is not necessarily the amount withheld by the foreign country. You can’t take a foreign tax credit for income tax you paid to a foreign country that would be refunded by the foreign country if you made a claim for refund."    So - it seems my course of action is to forget about the FTC for this year, continue with FEIE, and withdraw the contribution I made, plus any earnings. Then, I have to pay taxes in the US on any of possible these earnings, correct?    Now one possible curveball (and maybe better course of action?) that occurred to me today: While I requested the contribution with the broker at the end of December 2021 (I think Dec. 28 or something), it is listed as having a "contribution trade date" of January 2, 2022 (I also confirmed with my bank that the transfer of funds occurred January 2, 2022. Could I, for tax purposes, consider this as a 2022 roth IRA contribution, and then in my tax return for 2022 next year use the FTC to make this valid? My income and taxes will be substantially higher this year due to a new job and few expected deductible expenses. My only question is about the timing - I'm not sure if I need to claim this contribution for 2021 since I requested it to occur in 2021 but it didn't "fully"  process until 2022.     
  7. Hello community!   I would like to have your valuable advice how to manage the case of Automatic Exchange of (Financial Account) Information (AEOI).   To make a long story short, I was informed from the finance office that my specific bank account information (interest incomes) of the home country was noticed for both 2017 and 2018, asking the explanation on it very soon. Desperately, I tried to get any support and advice from many Steuerberaters, but no respond yet. If there is anyone who is affected by the similar situation, I want to know how to prepare and manage it.    For example: . from when: from 2017 up to 2021 (5 years, 2021 is pending to be submitted), or...   . which documents: "Finance income and withholding tax account", and...   Any advice and information would be appreciated much.   
  8. Hi all – new year, so, alas, time to think about my tax return again. I have a hopefully fairly straightforward question, and wondered if anyone could help out. The question is - can I offset university tuition fees against my German taxes? To give more information - I work full time as a freelance graphic designer here in Germany. I’m doing my first degree part-time with the Open University in the UK (started before I moved over here), for which I pay about £3500 a year in tuition fees. It’s an English Literature degree, so not really associated with my work. I’ve read some information on the internet about this, and seem to think it’s possible to put the tuition fees down as a deductible - but it’s unclear as to whether the degree has to have a connection with my work or not. Thanks very much in advance.
  9. Tax payable on sale of UK Property

    Hello I wonder if anyone knows whether the German 10 year tax exemption rule starts running from  exchange or completion of a UK property purchase? In our case we exchanged on a flat off-plan more than 10 years ago but actual completion was delayed and occurred 9 years ago. There is no UK CGT payable due to rebasing. Would appreciate anyone‘s insights or experience of this. Thanks,  Pearly