• Tell a friend
• Print
• Share
  • Twitter
  • Facebook
  • XING
  • LinkedIn
  • Mister Wong

When a Non-EU citizen has been working for a German subsidiary of his orginal employer, with it's headquarter outside of the EU, at least 1 year or longer, his total taxable income wil be unlimited. When the foreign employee has been working in Germany at least 6 but not longer than 12 months. In this situation the total taxabl income of the expat will be limited. Is a foreign employee working even less than 6 month, the total of the taxable income will be limited and therefore the tax will be already treated as compensated.

There are some expemtions when the tax will not be considered as compensated:

• should the foreign employee be an European Citizen, the paid tax will not be treated as compensated
• a double taxation treatment was put in place between Germany and the home country of the foreign employee
• when the employee has beenworking in Germany less than 183 days
• the employer has a registered address abroad
• the employer has no permanent establishment in Germany

How we can help:

If the Double Taxation Treatment is applicable, the exemption could be applied before working in Germany or could be claimed back in accordance to the German legal regulations & the fiscal code.

Independent from the fact how long the Employee hsa been working in Germany, the question of being compliant with the German regulations has to be considered. The payment of tax is a legally obligation. The Double Taxation Treatment could be applicable or a tax exemption application could be done.

Our private tax team has been advising expats working in Germany throughout the past 30 years. We will make you feel at home, while doing business in Germany.