Income splitting for married couples with separate residences in Germany and Austria.
October 27, 2014 | 31,00 EUR | answered by Anton Pernitschka
I am married with a son (9 years old). My wife and son have their primary residence in Austria, my primary residence is in Germany, and my secondary residence is with my wife. I earn my income in Germany and am the sole provider. In my understanding, we are eligible for the marriage tax splitting in Germany, is that correct?
Now, my wife is planning to start a self-employment in Austria, her income will be lower than mine. How does this affect the marriage tax splitting?
Thank you!
Dear inquirer,
In the context of an initial consultation and your fee commitment, while observing the rules of this forum, I would like to answer your questions.
The splitting procedure is a form of spousal taxation where both spouses are unlimitedly tax liable and choose to be jointly taxed. However, since your wife is not unlimitedly tax liable in Germany (1st residence in Austria), the conditions for the splitting procedure are not met.
The planned self-employment income of the wife is to be taxed in Austria. In this case, the wife's income cannot be jointly taxed with your income from non-self-employment.
This response was based on the information provided. Missing or incorrect details about the actual circumstances may affect the legal outcome.
Best regards,
Anton Pernitschka
Tax advisor
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