What measures can be taken to minimize double taxation of foreign income?
February 27, 2023 | 110,00 EUR | answered by Albrecht Schneider
Dear Sir or Madam,
my name is Norbert Becker and I have been working abroad for several years. Due to my work, I regularly receive income from abroad, which is already taxed in the respective country. Now I am concerned that I may also have to pay taxes on this income in Germany and therefore be subject to double taxation.
I have already tried to inform myself on the topic, but I am unsure about what actions I can take to minimize or even avoid the double taxation of my foreign income. Are there specific tax regulations or agreements between Germany and the country where I work that can help me?
I would like to learn more about how I can optimize my tax situation to avoid being taxed twice unnecessarily. For example, is there a possibility to restructure my income in the foreign country or to take advantage of special tax benefits or credits?
I would greatly appreciate it if you could provide me with specific actions or solutions to minimize the double taxation of my foreign income and optimize my tax burden. I hope for your expert advice and assistance on this matter.
Sincerely,
Norbert Becker
Dear Mr. Becker,
Thank you for your inquiry regarding the double taxation of your foreign income. I understand your concern and would like to assist you in optimizing your tax situation.
In general, double taxation can occur when income is taxed in both a foreign country and in Germany. To avoid or minimize this, there are various measures you can take. Firstly, you should check if there is a double taxation agreement between Germany and the country where you work. These agreements regulate which country has the right to tax certain incomes and how double taxation can be avoided.
Additionally, you may also be able to benefit from special tax reliefs or credits. Depending on the nature of your income and the tax regulations in your country of residence and work, you may be able to deduct certain expenses, claim exemptions, or benefit from a credit for foreign taxes against your German tax liability.
It is also advisable to carefully structure your foreign income to maximize tax benefits. This may involve receiving income in certain forms or making specific investments to optimize your tax burden.
In any case, I recommend contacting an experienced tax advisor who is familiar with international tax issues. They can analyze your individual situation and recommend specific actions to minimize double taxation and optimize your tax burden.
I hope this information is helpful to you and I am available for any further questions you may have.
Best regards,
Albrecht Schneider
