What tax regulations apply to income from abroad?
April 30, 2023 | 50,00 EUR | answered by Ulrike Voss
Dear Tax Lawyer,
I have a question regarding my tax situation in relation to income from abroad. In recent years, I have received increasing income from a foreign source and am now unsure how to correctly treat this from a tax perspective.
Background information: I have been working abroad for some time and receive my income there. This income is directly deposited into my foreign bank account. In addition to my foreign income, I also continue to earn income from my activities in Germany.
My concern is that I may be disregarding or misinterpreting tax regulations and thereby encountering issues with the tax authorities. I want to ensure that I correctly declare my income and do not evade taxes.
My question to you is: What tax regulations apply to income from abroad in my situation? Are there any specific considerations I need to be aware of? How can I ensure that I correctly declare my income and avoid potential tax pitfalls?
I would greatly appreciate it if you could assist me with this matter and provide me with possible solutions.
Thank you in advance for your support.
Kind regards,
Sven Hoffmann
Dear Mr. Hoffmann,
Thank you for your inquiry regarding your tax situation in relation to income from abroad. It is understandable that you are unsure about how to correctly handle these earnings to avoid potential issues with the tax office. I will therefore explain in detail the tax regulations that apply to your situation and how you can correctly declare and pay taxes on your income.
First and foremost, it is important to know that income from abroad is generally taxable in Germany. This means that you must also declare and pay taxes on your foreign income in your German tax return. There are some special rules and regulations that you should be aware of.
In your case, where you have income from both abroad and Germany, you must calculate income tax according to the respective national laws. This can lead to double taxation if both countries have the right to tax your income. To avoid this, there are usually double taxation agreements between countries that regulate how income is taxed and how double taxation can be avoided.
It is important that you correctly declare all income from abroad as well as from Germany in your tax return and keep all relevant documents such as pay slips, tax assessments, and bank statements. If you are unsure if you are doing everything correctly, I recommend seeking advice from a tax advisor or a specialist lawyer in tax law. They can help you avoid potential tax pitfalls and ensure that you correctly pay taxes on your income.
In summary, you can declare your foreign income in Germany but must comply with national laws and double taxation agreements. It is advisable to seek professional help if you are uncertain to avoid any issues with the tax office.
I hope this information helps you and I am happy to answer any further questions you may have.
Best regards,
Ulrike Voss
Tax Lawyer
