Steuern in Deutschland | SAXONY WORKS

Tax types

A distinction can be made between direct and indirect taxes. Indirect taxes tend to go unnoticed because they are not paid directly and are included in the total price. One example is VAT, which is levied on almost all goods purchased. The situation is similar with tobacco tax when you buy cigarettes, energy tax when you fill up your tank or electricity tax when you turn on the light switch. Direct taxes, on the other hand, are paid directly to the tax office.

Income tax is levied on all income that a person earns.

This includes wage tax, which is paid on income from professional activities. However, you also pay tax on income from capital investments (capital gains tax) or on rental income if you rent out property.

Income tax is a special form of income tax.

The amount of income tax depends on the individual tax rate and your tax class.
The tax rate depends on the amount you earn and is between 14 and 45 percent of your gross salary. This means that if you earn more, you also pay more income tax as a percentage.
There are six tax brackets in total. Which tax bracket applies to you depends mainly on your marital status, but also on your employment relationship and earnings. Married couples can choose different combinations of tax brackets.

At the end of each calendar year, your employer will send you a printout of your electronic income tax statement. This document contains all the important information about your pay and the tax contributions reported to the tax office.

In Germany, motor vehicle tax (Kfz-Steuer) must be paid for every motor vehicle, such as a car or motorcycle. This tax is due as soon as the vehicle is registered at the registration office. The vehicle tax must be paid by the person who is registered as the owner of the vehicle.

Vehicle tax is an annual tax that is usually debited from your account.

You can easily determine the exact amount of your vehicle tax with the vehicle tax calculator from the Federal Ministry of Finance.

Find further important information on tax duties if you run your own business.

Tax identification number

Every taxable person in Germany receives a tax identification number, or tax ID for short. The tax ID consists of an eleven-digit combination of numbers. It is individual and is valid for the same person for life . The tax ID is used to uniquely identify a person to the tax authorities.

People who move to Germany automatically receive their tax ID by post from the Federal Central Tax Office after they have registered their place of residence with the registration office at their place of residence.

You will need the tax ID to take up employment and for your tax return, among other things. In addition, the tax ID may also be required for various applications to government offices, health insurance companies, banks or insurance companies.

If you would like to work in Germany but do not live in Germany but, for example, in a neighboring country, you must complete the application for a tax identification number for persons not required to register with the tax office. This can be found in the Forms Management System (FMS) of the Federal Ministry of Finance. You must send the application in Saxony to the Chemnitz-Süd tax office.

Tax return

The tax return is important to determine whether you have to pay tax or are entitled to a tax refund.

Not everyone is obliged to submit a tax return. People who are employed and have no other income are often exempt from the obligation. However, many married couples and registered civil partnerships are required to submit a tax return.

If the tax office sends you a request to submit a tax return, you must comply with this in any case. However, you can also submit a tax return voluntarily in order to recover any overpaid taxes.

A tax return is always prepared for a calendar year. There are fixed deadlines for submitting tax returns. If you are obliged to submit a tax return, you must submit it by July 31 of the following year.

If you commission a tax consultant or an income tax assistance association, the deadline for submission is extended. If you want to submit a tax return voluntarily, you have four years to do so.

The tax return can be prepared either in paper form or electronically.

Forms from the Forms Management System (FMS) of the Federal Ministry of Finance are available to you for preparing your tax return.

You can prepare your tax return free of charge and directly online via ELSTER (ELektronische STeuerERklärung).

The completed forms can be submitted to the relevant tax office both in paper form and via the ELSTER online portal.

Personal data: Address, bank details and tax identification number

Income: Wage and salary statements, proof of other income such as rental income, self-employment or capital gains; certificates of sickness benefit, child sickness benefit, maternity or parental benefit, unemployment benefit

Income-related expenses: travel costs to work, work equipment, costs for professional training, for job applications, for a study or for work clothes

Special expenses: Insurance contributions, donations, pension contributions, childcare costs

Extraordinary expenses: Proof of medical expenses such as medication, glasses, self-paid costs at the doctor or alternative practitioner, settlement with health insurance and subsidy office, spa costs; care costs

Other documents: tradesmen's bills, utility bills for the apartment, double housekeeping

Tax software guides you step by step through your tax return. If you would prefer personal support, you can contact an income tax assistance association or a tax consultant.

Income tax assistance associations advise you as a member and take care of the entire tax return - including submission to the tax office.

Tax advisors are useful for complex issues such as setting up a company, international issues or larger assets. They also advise on inheritances or investments. The costs are based on a statutory scale of fees. It is best to clarify this in advance.