Tax on foreign income

67 posts in this topic

Not much to add to prestononline's post, thanks!

 

Regarding health insurance, some health insurers like Techniker Krankenkasse are very strict, and any month you had more than 395€ profit, you will have to pay for your own health insurance.

Others are a bit more lenient and allow you to remain under free family cover if the average of your profit in 2014 is below 395€.

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I'll post this question here because this thread has already touched on the following subject:

 

Regarding staying at or under the 395€/mo minijob "profit" limit in order to continue getting free family health insurance coverage:

 

(1) Does somebody making up to 450€/mo at a minijob get to deduct their monthly travel expenses, or must travel expenses (as is the case with regular employees) first exceed the 1000€ "paushal" sum before they can be deducted?

 

(2) Is there anything else they could deduct to get to or under the 395€/mo profit limit?

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You're in the clear, the complete rule for family insurance is:

 

  • 450€ from a mini job, or
  • 395€ from any other source

 

 

Awesome news again. So far, you have only been the bearer of good news PandaMunich!!

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Hello all,

I would like to have help wrt my foreign income earned from india for the tax filing in germany.

i have the following queries:

1. my source of foreign income are from rent and incterest from the bank.

the interest from the bank is minimal(about 57 euros of which 17 euros have been deducted as tax)

Regarding the rental income, i received about 3400 euros as the rent, and i have paid about 5250 euros towards the interest on my home loan. so, in effect, it stands negative. how does this effect my tax calculation at germany? do i stand to gain?

 

2. which tax forms should i include? to my knowledge, it would be Anlage V, Anlage AUS and Anlage KAP. could someone pls confirm?

3. as part of the rental income/interest earned, which documents are to be provided to the finanzamt? also, if the documents are written in english, is this a problem?

 

many thanks in advance.

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@fortax:

1. my source of foreign income are from rent and incterest from the bank.

the interest from the bank is minimal(about 57 euros of which 17 euros have been deducted as tax)

Regarding the rental income, i received about 3400 euros as the rent, and i have paid about 5250 euros towards the interest on my home loan. so, in effect, it stands negative. how does this effect my tax calculation at germany? do i stand to gain?

The interest you paid ony our home loan taken in India has no effect in Germany. So it dont stand as negative in Germany. You need to pay tax on you rental income of 3400€.

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The interest you paid on your home loan taken in India has no effect in Germany...

 

I am not so sure about that. You may be able to use the interest cost to reduce your rental profit to zero, and maybe even calculate rental loss. But I don't think you can offset rental loss against salary income here. So at best, you can reduce your rental income to zero. See the post:

 

 

...

line 20: add up the amounts from field 01, field 04 and field 07

line 21: forget about that for now, here you have to fill in the sum of (depreciation + interest costs + all real costs from the "Hausgeldabrechnung") which you only calculate later on, on the second page in line 50!

line 22: rental profit or loss = subtract amount in line 21 from amount in line 20

...

 

 

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i have paid about 5250 euros towards the interest on my home loan. so, in effect, it stands negative. how does this effect my tax calculation at germany? do i stand to gain?

 

Was that only the interest on your load or does it include capital repayments to reduce the loan? I only ask, because it seems like a lot if you only took 3400€ in rent. If your interest payments alone exceed your income, then your property is not a very good investment.

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Hello guys,

 

Thank you so much for the quick reply. I would be more than happy if my rental income is nullified:)

@yorkshirelad6 - yes, this amount is just the interest i paid up to the bank.

 

about query 2 and 3, could you please help me with it?

 

Thanks.

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Hello Fortax,

 

On the rental income:

 

1. You need to submit Anlage AUS - instructions by PandaMunich here..

2. Please see the following link. If you are resident in Germany then I believe you should submit the general form Mantelbogen, in addition Anlage AUS, and if you are employed in Germany Anlage N as well. Read the info from the link and you should be able to decide which forms you need.

3. You should provide documents to prove your rental income and expenses. Bank statements showing the monthly rental income should do the trick. Since the official language is German, you need to translate at least the important parts of the documents. For example you can use sticky notes.

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Hello Lubo dimov,

 

Thank you very much for the information. i shall try filling in the forms based on the inputs provided.

 

Thanks

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Bei Immobilien gilt häufig das Belegenheitsprinzip. Danach hat der Staat, in dem das Haus oder die Wohnung gebaut wurde, das Recht, die Einnahmen zu besteuern. Liegt die Wohnung also in Deutschland und zieht der Vermieter ins Ausland, so muss er seine Mieteinnahmen weiterhin in Deutschland versteuern.

 

Kapitaleinnahmen dagegen müssen in dem Land versteuert werden, in dem der Steuerpflichtige wohnt.

 

Ähnlich ist es bei den Gewerbebetrieben. Dort erhebt der Staat die Steuer, in dem die Betriebsstätte liegt. Beispiel: Eröffnet ein Deutscher in Belgien einen Betrieb, so sind die Einnahmen daraus vorrangig in Belgien zu versteuern.

 

Achtung! Sie müssen Ihre Einkünfte aus dem Ausland trotzdem in Ihrer deutschen Steuererklärung angeben. Dafür ist die Anlage AUS vorgesehen. Die Einnahmen aus anderen Ländern unterliegen in Deutschland weitgehend dem Progressionsvorbehalt. Das bedeutet, dass die Einnahmen zwar nicht direkt versteuert werden, jedoch Ihren persönlichen Steuersatz erhöhen.

 

w.r.t. the rental income in India the "Belegenheitsprinzip" will be applied and taxed in the country where the property is located (in India). But this income has to be declared in Germany to calcualte the "Progressive tax rate".

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Hey, there!

 

Thank you for all your answers and explanations. My case is very similar to what's been discussed here, but with some minor differences.

 

I am a full-time employee with the residence and job in Germany, who comes from Poland. I am currently preparing the Steuererklaerung for 2014 (my first one ever) and I need to report a capital gain (in fact, loss) and dividends received in Poland on a local stock exchange (when using a Polish brokerage account last year).

 

Dividends were taxed at the corporate level at 19% before they landed in my account. Capital gain was a small negative amount for the year, no tax needs to be paid in Poland on this negative number, but I still need to report the amount to the German tax office. Moreover, next year there may be a gain and I want to know how to do this.

 

Could anyone be kind and help me out by explaining where exactly to report my numbers on the Anlage AUS or in Anlage KAP or in both? In turn, I will do my best to educate my friends from work who are sitting in the same boat being unsure what to do... Of course one can recommend visiting a tax adviser, but I want to figure it out and learn.

 

Thanks!

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Please have a look at the instructions for the Anlage KAP (for capital income you no longer also need Anlage AUS) in post 1196 in Filing a tax return.

These instructions were written for the 2012 version of Anlage KAP.

 

As a workaround, open the 012 version and the 014 version in separate windows, look for the line that you need in the 2012 version (line 54), look what it says in German in that line in the 2012 version, and then look for that same sentence in the 2014 version (--> line 51).

 

Losses from investments not held in German banks are declared on the first page, losses other than from selling shares in line 17, losses from selling shares in line 18.

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Dear PandaMunich,

 

thank you for quick answer. I am at work today, so I won't start filling the form out until next week.

 

I had a glance at the form yesterday and I guess I couldn't find a field where to enter the tax with I already paid on dividend in Poland (from the Bescheinigung issued by a Polish bank).

 

Also, just in case the next year will bring me capital gains in Poland, where do I enter the field with the tax (19%) paid on stocks in Poland?

 

I do apologies for these questions, some of them have been asked you thousands of times, but after growing to understand a smaller part I will be learning my way to understand larger parts in future.

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Many thanks! :) I will return to these papers on Saturday after a working week. I need to sit down and "in der Ruehe" read everything carefully! Just really happy I could find your help and form explanations here!

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