Very interesting for expatriates who are working and living in or considering re-locating to Germany is the tax deductibility of work-related relocation expenses. Relocation expenses are work-related if you are moving from abroad to Germany, starting a new job in Germany the distance between home and workplace is significantly reduced i.e. traveling time shortened by
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The majority of the countries adopted a self-assessment regime for income taxation. US- or British citizens for example have to file their income tax return and calculate their tax burden. On this basis the income tax has to be paid. In Germany the system is different. The taxpayer has to file an income tax return.
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Most expatriates moving to Germany think that their foreign income is not subject to German income taxation. This is a grave misjudgement. Foreign income is either taxable in Germany or it effects the progressive German income tax rate. In both cases the income has to be declared in the German income tax return. For example,
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In Germany all cars taking part in traffic must have a valid vehicle registration, this blog article provides necessary information on the process. Local cars Pre-owned vehicles You just purchased a car, made a great deal and want to hop in right away. But before doing so, your new vehicle must go through the registration
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In Germany, each employee has to pay income tax on all income for one calendar year. Each month, the companies/employers automatically transfer the tax from the gross salary to the tax office. They also deduct “solidarity surcharge” and, depending on the employee’s religious faith, “church tax”. Insurance for pension, health, nursing and unemployment insurances is
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For the payment of the salary, the tax ID must be transmitted to the employer. The tax ID is generated automatically at the time of registration and sent by post within 2-4 weeks by the tax office. It is possible to request the tax ID directly from the registration office a few days after registration.
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