Ask a tax advisor on the topic of Double taxation

Separate assessment

March 16, 2011 | 20,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

I am Swiss, receive a pension and retirement benefits in Switzerland, and have been living in Germany since 2003. I do not need to pay taxes here due to the source tax in Switzerland. In 2008, I got married and would like to receive a NV certificate. My wife files taxes separately and only receives a small pension. Is it recommended to file taxes separately or jointly?

Dipl.BW/SB Ulrich Stiller

Dear seeker of advice,

Thank you for your inquiry, which I would like to answer based on the information you provided and considering your situation in the context of an initial consultation as follows:

Pensions from the AHV and the Swiss pension fund are subject to taxation in Germany with the tax rate, as you have a residence in Germany. If you were already a retiree as of January 1, 2005, the tax rate is 50%, meaning 50% of the pension is subject to taxation. With each year of later retirement, the tax rate increases by 2%. The same rule applies to your spouse if she receives a pension from the statutory pension insurance.

Subject to a detailed examination based on specific numbers, joint assessment may be more advantageous if your pension is significantly higher than your spouse's.

If the taxable income in a joint assessment is below 16,008 euros, you are not required to pay income tax, meaning you would receive a non-assessment certificate.

Yours sincerely,

Ulrich Stiller
Tax consultant/Diploma in Business Administration