We often receive questions about income tax declarations in Germany and where to find help, especially help in English.
First, we must clarify that we are not tax consultants and, under German law, are not authorised to provide any tax advice. You can read more about these legal restrictions in this article from Buhl (in German, but easily translatable with most browsers).
The information below is to offer guidelines and an overwiew of where to get information
In Germany, helping someone with their tax return is more strictly regulated than many people expect.
By law, only authorised professionals such as tax advisors (Steuerberater), lawyers, auditors, or registered income tax assistance associations are permitted to provide official tax advice. There is a limited exception
for close family members, who may help each other informally and without payment. Friends, colleagues, and unmarried partners are generally not allowed to assist, even with good intentions, as this can be considered unauthorised tax advice and may result in fines.
If you’re unsure, the safest option is always to use a licensed professional or a recognised tax assistance organisation.
Where to get more information:
In Germany, ELSTER (Elektronische Steuererklärung) is the official online tax system used to file taxes electronically with the German tax office (Finanzamt).
You use ELSTER for things like:
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
The following is quoted from the SARS Website and was valid at the time of publishing- “Yes, if an individual earns employment income in excess of R1.25 million and the double tax agreement between South Africa and the foreign country, if any, does not provide a sole taxing right to one country, both countries will have a right to tax the income. The portion of the income in excess of R1.25 million may end up being double taxed.
Generally, under the provisions of the relevant double tax agreement, if an employee renders services in a foreign country exceeding 183 days, both countries enjoy the right to tax the income. The country of source enjoys the first right to tax the employment income and the country of residence, in our case South Africa, will provide double tax relief in the form of a foreign tax credit to the extent that tax was paid in both countries, subject to limitations.” – More information on the SARS Website
Keep in mind that depending on your situation, if you are over the R1.25 million threshold, you still can claim tax credits for the taxes paid in Germany. The best thing to do is to speak to your tax consultant.
The following was quoted from the SARS website and was valid at the time of publishing. “Section 6quat is the mechanism under South Africa’s domestic law to claim relief from double tax where the amount received for services rendered outside South Africa is subject to tax in South Africa and in the foreign country. This credit may be claimed on assessment through an individual’s income tax return, provided certain requirements are met.
An employer may at his or her discretion, under paragraph 10 of the Fourth Schedule, apply for a directive from SARS to take into account the potential section 6quat credit on a monthly basis to determine the employees’ tax liability. This will have to be done through a dedicated channel at SARS that will be made available to the public.
See the information on Directives under paragraph 10 of the Fourth Schedule.
SARS Income Tax First, I have to state that we are not tax consultants and by German law are not allowed to give any tax advice. Please speak to a professional tax consultant if you have any questions regarding your taxes in South Africa. Some basic information The SARS tax year is named by the year in which it ends, e.g. the 2025 tax year runs from 1 March 2024 to the end of February
How is foreign income taxed in Germany?
Here are some websites to read up on:
Bayern
| German Term | English Meaning | What It Means |
|---|---|---|
| ELSTER | Electronic Tax System | Germany’s official online tax filing portal. |
| Steuererklärung | Tax Return | The annual tax declaration submitted to the Finanzamt. |
| Finanzamt | Tax Office | The government office responsible for taxes. |
| Steuernummer | Tax Number | A number assigned by the Finanzamt for tax matters. |
| Steuer-ID | Tax Identification Number | Your permanent personal tax ID in Germany. |
| Lohnsteuer | Wage Tax | Tax automatically deducted from your salary. |
| Steuerbescheid | Tax Assessment Notice | The official result of your submitted tax return. |
| Werbungskosten | Work-related Expenses | Expenses you may deduct from taxable income. |
| Kirchensteuer | Church Tax | A tax paid by registered church members. |
| Steuerklasse | Tax Class | Your tax category based on marital and employment status. |
We are not financial advisors, and can therefore not give any financial advice. We can however give you some guidelines about the industry in Germany and also some tips on finding a good consultant. Here is some basic information you need when you want to use the services of a financial or wealth advisor. Independent vs employedFinancial advisors can be self-employed (independent) or employed at a Financial institution The term Financial advisor is not legally
Procedure to cease tax residency with SARS When you are earning your salary in Germany, and you are still a tax resident in South Africa, you need to declare your foreign income to SARS by submitting an annual Tax return to SARS. If you earn less than R1.25 million per year in Germany, you do not pay any taxes on this foreign income in South Africa. If you earn above that, the taxes you already
The following Social Insurances are payable in Germany when you are a full-time employee or trainee: Krankenvesicherung / Medical Insurance Plegeversicherung / Long Term care insurance. Nursing or home care Rentenversicherung / Pension insurance Unfallversicherung / Accident insurance – Should you become ill due to your profession you will be supported by the statutory accident insurance scheme. This will, for example, continue to pay your wages.It also assumes the cost for a further training course
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