We receive a lot of questions about income tax declarations and where to get help, especially getting help in English.
First I have to state that we are not tax consultants and by German law are not allowed to give any tax advice. You can read more about it here, the article is German but can be easily translated.
Basically your immediate family can assist you with your taxes, see the article, but if there is no family relationship you are not allowed to assist someone. You are not allowed to help with your friend’s tax return. This also includes a partner if you are not engaged or married.
See more from Steuertipps,
Some of the options available to you are:
- Get a Tax advisor. In Germany they are called der Steuerberater
- Get help from a Lohnsteuerhilfeverein ( A wage tax aid association is a self-help institution run by employees for employees to provide assistance in wage tax matters and in special income tax assessment cases (Section 13 StBerG). They were created in 1964 at the instigation of the trade unions. The aim of the legislature is to ensure that employees can receive tax advice at reasonable costs regardless of their income.) To find one in your area you can search online or on this website. You can specify your language as well e.g Englisch or English
- Do it yourself. You might want to consider using software or apps. The tax rules in Germany are extremely complicated especially when both partners are working and you have kids.
These rules also changes yearly so make sure that if you use software, it is up to date
Where to get more information:
- Deutscher Steuerberater Verband / German Association for Tax advisers
- Make it in Germany
- Bundesministerium der Finanzen as well as this page from them
- Amtliches Lohnsteuer-Handbuch from the Bundesministerium der Finanzen
Some basic information
The German Tax year runs from January to December and you can submit your tax return between 1 January and 31 July the following year.
Lohnsteuer and Einkommensteuer – They differ by the method of collection. Lohnsteuer is collected at source and paid directly to the Finanzamt (tax office) by the employer while the individual must pay Einkommensteuer himself
There are 6 German Income Tax Classes “Lohnsteuerklasse“. You can find the list here.
How and where do I register for Tax
As an employee, you will receive your tax ID (Steueridentifikationsnummer), Format: 12 345 678 901, when you register at the Bürgerampt and Auländerbehorde. This is like an Identity number and you will keep it for life. Children born in Germany receive their tax ID at birth.
As a freelancer or company, you must register for a tax number (Steuernummer), Format: 12/345/67890 or 3012034567890, that you use on your Invoices.
This number is related to your place of residence and if you move to a new town you will need to apply for a new number. Application is done at the Finanzamt.
You also apply for a VAT number (Umsatzsteuer-Id), Format: DE123456789, at the Finanzamt.
How to Berlin has an excellent article about registering for tax
Double Taxation Treaty between South Africa and Germany
- Agreement between the Federal Republic of Germany and the Republic of South Africa for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital
- Abkommen zwischen der Bundersrepublik Deutschland un der Republik Südafrika zur Vermeidung der Doppelbesteuerung auf dem Gebiete der Steuern von Einkommen
- Income Tax Act, 1962 – AGREEMENT BETWEEN THE REPUBLIC OF SOUTH AFRICA AND THE FEDERAL
REPUBLIC OF GERMANY FOR THE AVOIDANCE OF DOUBLE TAXATION WITH
RESPECT TO TAXES ON INCOME - From SARS
- Note- South African uses a Residence base tax system and Germany a source base system
Info from SARS
- Information from SARS on who is regarded as a non-resident
- Cease to be a Resident
- SARS – Foreign Employment Income Exemption
- Do I need to submit a tax return, even if I work outside of South Africa
Who is a tax resident in South Africa – Reference SARS
An individual is a resident for tax purposes in South Africa either by way of ordinarily residence or by way of physical presence. The concept of “ordinarily residence” is not clearly defined and the determination of whether or not an individual is an ordinarily resident for tax purposes must be done on a case-by-case basis. A number of factors must be taken into account to make such a determination. Interpretation Note 3 (Issue 2): Resident: Definition in relation to a natural person – ordinarily resident sets out the list of factors that will be taken into account to determine whether an individual is ordinarily resident for tax purposes in South Africa.
An individual can also become a tax resident by way of physical presence. For more details in this regard, refer to Interpretation Note 4 (Issue 5): Resident: Definition in relation to a natural person – physical presence test.
An individual who is deemed to be exclusively a resident of another country for purposes of a tax treaty is excluded from the definition of “resident”. It follows that while an individual may qualify as a resident under the ordinarily resident or physical presence tests, that individual will not be regarded as a resident for South African tax purposes if that person is a resident of another country when applying a tax treaty.
Resources on the web
- N26 how to submit your tax declaration
- HandbookGermany – Tax declaration
- Fiscal Code of Germany
- Expatica – Taxes for freelancers and Self-employed
Finding a tax advisor
One of the best ways to find a good tax advisor is by word of mouth.
You can search the Chamber of tax advisors (Steuerberaterkammern), the German association of Tax Consultants (Deutschen Steuerberaterverbands DStV), the regional directory of the Federal Chamber of Tax Advisors (Bundessteuerberaterkammer) or other tax advisor directories.
English speaking tax advisors
- Exapt Tax – also good for freelancers
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