Inheritance case abroad
June 15, 2011 | 50,00 EUR | answered by Dr. Dr. Danjel-Philippe Newerla
My aunt (Australian citizen) passed away in January in Australia. Her funeral and the execution of her will is being handled by a corresponding office in Perth. There are 4 heirs, one of them being me. The matter is currently with the Supreme Court of Western Australia, which must approve the sale of assets and stocks. Only then can the office in charge of executing the will make payments to the heirs.
Question: Is there currently an inheritance tax or similar in Australia? Where is the tax collected and how high is it? Will the inheritance be reported to the German (tax) authorities by the Australian authorities?
Dear Seeker,
Thank you for your inquiry. I would like to answer it as follows:
1. Is there currently an inheritance tax or similar in Australia?
Just like in Germany, Australia also has an inheritance tax, referred to as "death duties." I have attached a brief guide with important information on inheritance law in Australia:
http://www.erbrechtsforum.de/fileadmin/files/documents/ausl_recht/Australien.pdf
2. Where is the tax levied and how much is it?
Generally, the tax is levied where you have your permanent residence. So if you have your permanent residence in Germany, the inheritance tax will be levied in Germany. The exact amount of the inheritance tax depends on the value of the estate, your share of inheritance, and your relationship to the deceased. Without knowing these numbers, it is unfortunately not possible to provide a definitive calculation, especially in an initial consultation.
First, your share of inheritance would need to be calculated. Then, the relationship to the deceased would need to be determined in order to calculate the amount of the tax-free allowance. Following that, the specific amount to be taxed (i.e., inheritance share minus tax-free allowance) would need to be determined, as the individual tax rate depends on this.
Unfortunately, since there is no double taxation agreement between Germany and Australia, there will also be additional taxation in Australia. For the exact amount, you should consult a tax advisor in Australia.
3. Will the inheritance be reported by Australian authorities to German (tax) authorities?
You can assume that this will happen. Furthermore, according to the law, you are required to report the inheritance to the competent tax office within three months of becoming aware of it. You should definitely comply with this legal requirement.
I hope I have provided you with a basic legal orientation and wish you success and all the best!
I would like to finally point out the following:
The legal advice I have provided is based solely on the information you have provided. My response is only an initial legal assessment of the situation and cannot replace a comprehensive review of the facts. Adding or omitting relevant information can lead to a completely different legal assessment.
I hope my explanations have been helpful to you. You are welcome to contact me through the follow-up option if you have any further questions.
I wish you a pleasant Wednesday afternoon!
Kind regards from the North Sea coast
Dipl.-Jur. Danjel-Philippe Newerla, Attorney at Law
Stresemannstr. 46
27570 Bremerhaven
kanzlei.newerla@web.de
Fax. 0471/140244
Tel. 0471/140240 or 0471/140241
