Small business - Proof of livelihood
December 18, 2012 | 30,00 EUR | answered by Dr. Yanqiong Bolik
Good day,
I registered a small business in Bavaria in September 2011 and now have to submit the tax return for 2011. I operate an online real estate agency (purely PC-internet activity) and am not tied to a fixed location. If I had sufficient income, moving to Germany would have been an option. Unfortunately, my plan has not developed positively so far.
I assume that I do not have to fill out the "Attachment N" as I do not engage in any employment, and also not the "Pension Expenses" form, as I do not have any corresponding expenses in Germany.
Since 2007, I have been living abroad with my partner (Turkey, Hungary, Austria), who finances all my living expenses and insurance (I manage the household and accompany him on trips). Therefore, I do not depend on the income from the small business.
Now, I am required to prove to the tax office how I support myself. Does my partner (we are not married) have to provide information about his income (he believes that Germany has no right to know, as he is not German and his business is not related to me), or is it enough if I provide a statement to the tax office?
Looking forward to your response.
Dear inquirer,
Thank you for your inquiry, which I will gladly answer taking into consideration your effort and the rules of this platform.
Please note that my response is based on the situation presented, and that adding, omitting, changing information, or the ambiguity of information can change the tax result.
- I assume that I do not need to fill out the "Anlage N" since I am not engaged in any employed activity, as well as the form "Vorsorgeaufwendungen" since I do not have corresponding expenses in Germany.
You are correct that you do not need to fill out the Anlage N if you do not earn income from non-self-employed activity. Regarding pension expenses, it needs to be examined: 1. Do you have pension expenses eligible for consideration under German income tax law? 2. If yes, are the contributions to these pension expenses taken into account if you have paid the contributions yourself. Since your partner finances your insurance contributions, you probably have not paid the contributions yourself.
- Proof of livelihood
To ensure a uniform and lawful determination and collection of taxes, the tax office can investigate the situation ex officio. In order to ensure that any taxable income you have is properly declared, your competent tax office may request proof of your livelihood. As a party involved, you are generally required to cooperate in determining the situation. You should submit your tax return properly and provide the tax office with truthful information that your partner finances your livelihood. Since your partner (based on the situation described) is not subject to income tax in Germany, your information will not necessarily trigger inquiries to your partner.
I hope I have been able to assist you.
If there are still any uncertainties, please feel free to use the follow-up function.
Sincerely,
Dr. Yanqiong Bolik
Tax Advisor
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: info@zdbz.de
www.steuerberatung.zdbz.de
