How can I consider my stays abroad in my income tax return?
March 5, 2024 | 40,00 EUR | answered by Tatiana Herrmann
Dear tax consultant,
My name is Fanni Binder and I have been working as a freelance marketing consultant for several years. In recent years, I have taken on more projects abroad and have therefore been working in foreign countries for longer periods of time. Now I am faced with the challenge of filing my income tax return and I am wondering how I can account for my stays abroad in terms of taxation.
In the past, I have never included my stays abroad in my tax return because I was uncertain about how to correctly record and claim them. Now I am worried that I may be missing out on tax benefits or even making incorrect statements that could lead to issues with the tax authorities.
During my stays abroad, I have earned income from my freelance work as well as possibly rental income from my German apartment. Additionally, I have incurred expenses for accommodation, meals, and travel during my stays. How can I properly report all this information in my income tax return and what options are there to account for my stays abroad in terms of taxation?
I would greatly appreciate your assistance and expertise in this matter, as I am unsure about how to proceed. Thank you in advance for your help.
Sincerely,
Fanni Binder
Dear Mrs. Binder,
Thank you for your inquiry regarding the tax treatment of your stays abroad in your income tax return. As a freelance marketing consultant with assignments abroad, you certainly have a variety of tax aspects to consider. I will now explain in detail how you can correctly record and claim your stays abroad in your tax return.
First of all, it is important to know that income earned abroad must generally also be taxed in Germany. Therefore, you should report all income from your freelance work abroad in your income tax return. This also applies to any rental income from your German apartment during your stays abroad.
To account for your stays abroad for tax purposes, you can claim the incurred costs for accommodation, meals, and travel expenses as business expenses. These costs reduce your taxable income and can lead to a tax saving. It is important to keep all receipts and evidence of your expenses carefully in order to be able to present them in case of an audit by the tax office.
Furthermore, you should check whether there is a double taxation agreement between Germany and the respective country where you were working. In such cases, you may be able to offset the taxes paid abroad on your income in Germany to avoid double taxation.
It is advisable to seek the assistance of a tax advisor to ensure that your income tax return is correct and complete. An experienced tax advisor can help you with recording your stays abroad and the corresponding tax treatment, and optimize potential tax benefits.
I hope that this information is helpful to you and I am available for any further questions. Thank you for your trust and best wishes for your income tax return.
Sincerely,
Tatiana Herrmann
