Another question regarding Tax residence and 183 day-rule

2 posts in this topic

Hi everyone,


First post here, so greetings and thanks for your time. I have yet another question regarding the 183-rule and tax residency in Germany.

I read everything I could about the topic, but I am still doubting regarding the consequences of the rule


In 2019 I lived 181 days in the Netherlands (Jan 1st to June 30th), with a dutch employer, receiving a dutch salary. (around €20K)

I moved afterwards to Germany, spending here since then (184 days in 2019). (salary of around €30K)


I am now filing my taxes for 2019, and it's not clear to me if I'm "Unbeschränkte Einkommensteuerpflicht" for the whole year 2019 or just for the second half.


If I'm not mistaken, in the first case I would need to fill the Anlage N AUS or the Anlage WA Est in case I am just temporarily unlimited tax liable.


Does anyone know what is the right option?


In case I am only liable for the second half of the year (July 1st onwards), may I include the moving (June 29th) and the job interviews (February) I performed in order to be able to  move to Germany?


Thank you


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The "183-day rule" found in subparagraph 2 of Article 14 of the Germany-Netherlands is an exception to the general rule set forth in Subparagraph 1 of Art. 14 that states that employment income is taxable only in the state where the employment is exercised.  Your facts do not qualify you for the 183-day exception because although your Dutch employment lasted less than the 183 day maximum your wages were borne by a Dutch employer.  Thus, even if you were a resident of Germany and employed there by a German employer through 31.12.2018, your subsequent 181-day Dutch employment would be fully taxable in the Netherlands and non-taxable in Germany.


Without knowing where you were resident and employed through the end of 2018, we cannot know when your German tax residence began but from your facts it began (probably) not later than 1 July 2019.  (You also don't say whether it continued into 2020 but your profile says "Munich" so we'll assume you are still here.)


If your German residence began in 2019, you pay taxes on your German wage income and world-wide income from any source as a tax resident in 2019 and report your Dutch and other non-German income for purposes of computing Progressionsvorbehalt.  Your German-source income for the first 181 days of 2019 would be subject to German non-resident taxation (beschränktsteuerpflichtig).


The instructions to Anlage WA Est indicate that if you did have German-source income during your period of German non-residency you apparently do not file a separate non-resident return (ESt 1 C) to report that income. Instead you apparently are supposed to simply include that income on your resident return and somehow (I don't know quite how) your non-resident tax on that income will be computed.


If your German residence began prior to 1.1.2019 (i.e. you were only temporarily in Holland for 181-days), then the only difference would be that your worldwide non-wage income in the first 181 days of 2019 would be fully taxable in Germany, i.e. you would be unbeschränktsteuerpflichtig the entire year - including, of course, your German source income - but not still not taxable on your Dutch income - except for Progressionsvorbehalt.


In either case you will report your Dutch wages on Anlage N-AUS and you will file Anlage WA ESt to report your comings and goings to Germany in 2019 and the income attributable to these periods.




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