Taxation on Sales Commissions in Germany

[Filippobj 1]

Hi All, 

 

i´ve heard that the taxation upon commissions on succesfull deals it´s crazy in Germany .. could you give me a rough estimation ? let´s assume i made around 100k. Plus when/how i´m a supposed to pay such taxes ? will they be directly deducuted from the employeer ? 

 

Thanks, 

 

Filippo 

[ExPattheDog 26]

21 hours ago, Filippobj said:

Hi All, 

 

i´ve heard that the taxation upon commissions on succesfull deals it´s crazy in Germany .. could you give me a rough estimation ? let´s assume i made around 100k. Plus when/how i´m a supposed to pay such taxes ? will they be directly deducuted from the employeer ? 

 

Thanks, 

 

Filippo 

 

I've been in sales for 4 years in Germany and a large part of my total pay is in commission. 

The finanzamt just calculates it based on the total of each payslip. For example, for payslips including commission, you will be on a higher tax rate than normally for that one payslip, but if it ends up at the end of the year that you paid too much taxes, you will get it back. 

 

Generally, if you're on 100k, assume to get about 1/2 of what you're expecting after taxes, health insurance, etc. 

[java10 25]

12 minutes ago, ExPattheDog said:

 

I've been in sales for 4 years in Germany and a large part of my total pay is in commission. 

The finanzamt just calculates it based on the total of each payslip. For example, for payslips including commission, you will be on a higher tax rate than normally for that one payslip, but if it ends up at the end of the year that you paid too much taxes, you will get it back. 

 

Generally, if you're on 100k, assume to get about 1/2 of what you're expecting after taxes, health insurance, etc. 

 

One off-topic question: What margins/percetages are we talking in business where one earns commission? I know there are lots of factors, of course, but there should be some range (+/- 5 %)? Thanks!

[Filippobj 1]

1 hour ago, ExPattheDog said:

 

I've been in sales for 4 years in Germany and a large part of my total pay is in commission. 

The finanzamt just calculates it based on the total of each payslip. For example, for payslips including commission, you will be on a higher tax rate than normally for that one payslip, but if it ends up at the end of the year that you paid too much taxes, you will get it back. 

 

Generally, if you're on 100k, assume to get about 1/2 of what you're expecting after taxes, health insurance, etc. 

Thanks !