Taxation in Germany

106
Taxation
Welcome Centre
Taxation
in Germany
9
107
Universität Bonn
9.1 Research Visit Based on a Fellowship
If your research visit to Germany is supposed to take
place in the framework of a fellowship you may, under certain circumstances, be exempt from taxation
under German income tax law. It is certainly worth
consulting the organisation which has awarded the
fellowship on this point. Furthermore, you should
find out whether the fellowship paid in Germany is
subject to taxation in your own country.
The preconditions for tax exemption on fellowships
in Germany are:
■ award from public funds or via a public or nonprofit agency (recognised under German law)
■ sponsoring research or academic or artistic
training or continuing education
■ no higher than the amount required to fulfil
the research task or to cover living and training
needs
■ grant according to the regulations of the donor
■ no quid pro quo requirement or employment of
the recipient
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Taxation
Welcome Centre
9.2 Research Visit Based on an
Employment Contract
If your research visit is based on an employment contract in Germany and will last more than 6 months
you will effectively be liable to taxation in Germany
on your globally-earned income and assets.
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Income tax
Income tax is deducted from your salary at source
and paid to the state directly by your employer, i.e.
the university. The amount of taxation depends on
income, marital status and tax bracket. When you
first start work and at the beginning of every subsequent calendar year, you will have to hand a “Lohnsteuerkarte” (tax card) in to your employer. It contains
personal details that are relevant for taxation, such
as whether you are married and have children. You
can obtain this card from the “Einwohnermeldeamt”
(Residents’ Registration Office) in your place of residence. However, an electronic system is currently being developed: in future, every person registered will
be issued with a life-long ID number. You will usually
be sent this number by post a few days after registering at the Residents’ Registration Office. During the
transition period, a paper tax card will still be issued;
it will probably be abolished completely in 2011 and
replaced by the “Steuer-Identifikationsnummer” (tax
identification number).
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109
Universität Bonn
9.3 Double Taxation Agreements
In order to avoid a situation in which foreigners are
liable to pay tax both in Germany and in their own
countries, double taxation agreements have been
signed with many countries. They regulate in which
country you have to pay tax.
Germany for a maximum of two years to work on
research at a public research institution may pay their
taxes in their own countries. Details can be found in
the double taxation agreements between the Member
States of the EU and other countries.
If you stay in Germany for less than 6 months, your
income will be taxed in your own country provided
that you work for a foreign employer and that the
double taxation agreement assigns the right of taxation to your own country. If one of these conditions
is not met, your salary will be taxed in Germany.
Agreements exist with some countries stating that
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In Bonn
You can download the application form for
employees subject to limited tax liability from
the website of the Ministry of Finance in Nordrhein Westfalen:
www.fm.nrw.de/go/vordrucke
> Lohnsteuer / Lohnsteuerermäßigung >
Lohnsteuerermäßigung für Grenzpendler
/ Steuerbefreiung bei Auslandstätigkeit >
‚Antrag auf Erteilung einer Bescheinigung
für beschränkt einkommensteuerpflichtige
Arbeitnehmer‘ (pdf)
You will find an English translation of the form
(for information only) on the website of the
Welcome Centre under “formalities, taxes”
You can complete the application and hand it
over to the relevant administrator in the Personnel Department. If you do not know your
so
ad
dministrator personally, please contact the
Welcome Centre.
W
110
Taxation
Welcome Centre
For matters relating to double taxation the
“Finanzamt” (tax office) in Düsseldorf is responsible for staff at the University of Bonn.
It is here that the applications are examined
and the respective tax bracket allocated. If you
have any other questions you can get advice
at the Düsseldorf Tax Office. Your contacts
there are:
Finanzamt Düsseldorf-Süd
Kruppstr. 110–112
40227 Düsseldorf
Andrea Thönnes
Tel.: 02 11 / 77 98 37 36
Irene Pützer
Tel.: 02 11 / 77 98 36 25
Wolfram Wenzel
Tel.: 02 11 / 77 98 31 04
www.finanzamt-duesseldorf-sued.de
For further useful information, forms and leaflets on the topic of taxation and double taxation in Nordrhein-Westfalen visit the website of
the “Oberfinanzdirektion Rheinland” (regional
tax office):
www.oberfinanzdirektion-rheinland.de
9.4 Tax Return
At the end of each calendar year you may apply to the
tax office at your place of residence for a “Lohnsteuerausgleich” (income tax adjustment).
This may entitle you to a partial refund of tax paid.
The necessary documents can be obtained from the
local “Finanzamt” (tax office) or “Rathaus” (town
hall).
You can also submit a tax return from your own country if you have already returned home. It must reach
the local tax office by May of the following year; at the
very latest by 31 December. When the tax office has
processed the tax return you will receive a “Steuerbescheid” (tax statement) informing you whether and
to what extent tax will be refunded.
It may be worth paying a “Steuerberater” (tax accountant) to help you complete your tax return.
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9
111
Universität Bonn
9.5 Church Tax
An unusual feature of taxation in Germany is statecollected “Kirchensteuer” (church tax). Under certain
circumstances, churches can have their tax collected
for them by the tax office. In the case of the major
churches, church tax (roughly 9% of income tax) is
collected by the state together with income tax and
automatically deducted from your monthly salary.
This is the reason why you are asked to state your
religion when you register at the Residents’ Registration Office.
If you belong to the Roman Catholic Church, the
Lutheran Church, the Reformed Protestant Church,
the Jewish Community or certain Protestant Free
Churches you are required to pay church tax in Germany. This does not apply, however, if you belong to
the Anglican Church or the Orthodox Church. If in
doubt, ask for advice at the Residents’ Registration
Office.
For useful information on the
subject of taxation in Germany
visit:
www.steuerliches-info-center.de/en
(Federal Central Tax Office)
www.bundesfinanzministerium.de
(Federal Ministry of Finance)
www.dstv.de
(German Association of Tax Advisers – tax
accountant database)