Ask a tax advisor on the topic of Income tax return

Income from abroad where to indicate

May 30, 2011 | 20,00 EUR | answered by Michael Herrmann

Hello,

I am self-employed and usually work in Germany as a specialist for event technology. Last year, the opportunity arose for me to work as a technician on a cruise ship.
I was employed with a contract by the shipping company based in Cyprus, the ship itself sails under the Maltese flag, all for a German tourism group.

For my tax return, I now have to declare this income. The income is tax-free according to the shipping company in Cyprus, but due to the existing Double Taxation Agreement with Cyprus, it is subject to the progression clause.
My problem now is that I am not sure in which lines I should enter something in Annex AUS. I would enter the income in line 7, then enter a 0 in line 10, since I did not pay taxes in Cyprus.

Is this approach correct?

Thank you for your help!
Regards

Michael Herrmann

Dear inquirer,

First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can affect the legal outcome.

The foreign income should be entered in line 21 of Schedule N. Lines 7 and 10 of Schedule AUS would only be relevant if foreign tax credit is to be applied. This does not appear to be the case here.

I hope that these details have provided you with an adequate overview of the situation in relation to your inquiry and this initial consultation.

Best regards,

Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax Consultant