Which forms do I need to fill out in order to avoid double taxation?
May 17, 2023 | 125,00 EUR | answered by Guido Hoffmann
Dear Tax Advisor,
My name is Verena Hering and I work as a freelance graphic designer. In recent years, I have received an increasing number of orders from abroad and am now faced with the issue of double taxation. My income from abroad is already taxed there, but I am also required to pay taxes on it in Germany.
Currently, I am unsure which forms I need to fill out in order to avoid double taxation. I want to prevent paying too much tax in the end or even encountering tax conflicts.
My concern is that I do not have sufficient knowledge in this tax matter and may make mistakes when submitting my tax return. Therefore, I would like to seek your advice and know what specific steps I need to take to avoid double taxation.
Which forms do I need to fill out specifically to ensure that my income from abroad is not double taxed? Are there any special regulations or agreements that I need to be aware of? I look forward to your professional advice and thank you in advance for your help.
Sincerely,
Verena Hering
Dear Ms. Hering,
Thank you for your inquiry regarding double taxation as a freelance graphic designer with income from abroad. It is understandable that you feel uncertain and overwhelmed when it comes to the tax treatment of your international income. I am happy to offer my expertise to assist you in this matter.
To avoid double taxation, it is important that you familiarize yourself with the Double Taxation Agreement (DTA) between Germany and the country from which you receive income. This agreement governs the taxing rights of both countries to ensure that your income is only taxed once.
Typically, you will need to fill out a "Anlage AUS" for your income tax return in Germany to declare your foreign income. Here, you will specify the country and amount of income earned. Additionally, you will need to provide proof of taxes already paid abroad in order to receive a credit or exemption from German tax.
It is important that you carefully document and retain all relevant documents such as tax assessments from abroad, proof of taxes paid, as well as all income and expenses. A thorough examination of the specific provisions of the DTA and accurate reporting of your income in the tax return are crucial to avoid double taxation.
Furthermore, you may also consider seeking advice from a tax advisor or an expert in international tax law if needed. This can help you avoid potential tax conflicts and ensure that you follow all necessary steps correctly.
I hope this information is helpful to you and I am available for any further questions. Please do not hesitate to contact me if you need additional support. I wish you success in handling your international income tax matters.
Best regards,
Guido Hoffmann
