Brutto-Netto-Rechner (Gross - Net Calculator)

This service – only available in German, enables you to determine what you can take home from your monthly pay slip.

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Special Expenses or Personal Deductions (Sonderausgaben)

Not everything is not a professional expense is not excluded from reducing your tax debt. Personal deductions or German Sonderausgaben also decrease your tax burden.


Taxation of Private Persons

Since the tax law is subject to fluctuations, it is hard to give you a precise description of the rules. The following provisions should give you a very general overview. For detailed, up-to-date information, consult your attorney, public accountant or tax adviser. This part is addressing employees and persons not running a business. Understand already freelancers as "business"!

BTW: Did you know? Tax Return - its origin:

Until 1694, English sovereigns financed their expenditure simply by issuing credit tokens (IOUs) to taxpayers at a discount. In other words a tax-payer could "prepay" his taxes, for instance by giving the sovereign 8 pounds sterling in goods and services in exchange for a 10 pound token from the Exchequer (Treasury), which could be returned in payment of taxes.
Interestingly, the phrase "tax return" derives from the payment of tax by returning the credit token to the King's Exchequer, and the phrase "rate of return" literally described the time over which the taxpayer could achieve his discount and profit by returning his tokens/credits to the Exchequer. So in the above example, if the taxpayer paid 10 pounds tax in one year, he would make a 2 pound profit on an 8 pound investment and a 25% rate of return. If he paid 5 pounds in tax a year then the rate of return would be 12.5% and so on. It will be observed that no compound interest was involved. But that's history; it is not so easy today anymore.


Subject to Taxation

As a general rule, you are taxed where you have your domicile. But the following questions will show how tricky this subject actually is. However, taxation depends on the actual mixture of your citizenship and the kind of income to be taxed. Whereas some countries (like the United States) have the principle of nationality (meaning every US citizen is obliged to at least submit a tax return – wherever they may live), Germany has the principle of residency, which means that if you live here, then you have to submit a return and maybe pay taxes. N.B. Do not work in Germany unless you have a residence permit allowing you to work here. The tax office does not care whatsoever if your income was illegal or not. Such income will be taxed – following the normal rules!


Americans and Taxation with IRS

Every expat American must obey two things that Uncle Sam does not frown. This will page will tell you all the basics.


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