Who is liable to pay German Income Tax?
Individuals resident in Germany are taxed on their worldwide income while non-resident individuals are subjected to income tax payments in Germany only on income from German sources.
Who is a Tax Resident of Germany?
An individual is considered resident if they maintain a domicile or habitual place of abode in Germany usually for a period exceeding 6 months.
What is the tax year end?
When are tax returns due?
31st July if filed personally and 28th February if prepared by a professional tax agent/consultant.
Is there a personal tax allowance?
Allowances range from 9,168 euros for individuals to 18,336 euros for married couples filing a joint return.
What are the tax rates?
Residents are taxed Progressively on earned income with rates ranging from 14% to 45%.
What are the social security rates?
Employees are required to contribute 19.375% of their gross taxable income with appropriate ceilings.
Can I be self-employed, or must I become an employee to work in Germany?
You can be self-employed in Germany. Contact us for more details.