What impact does a stay abroad have on my income tax return?
February 17, 2023 | 40,00 EUR | answered by Ralf Otten
Dear tax advisor,
I am Jan Bittner and currently working abroad for a year. I am unsure how my stay abroad will affect my income tax return and what tax consequences I need to consider.
Currently, I am taxable in Germany and have my residence here. During my stay abroad, I continue to receive my salary from my German employer. I have also heard that there are different regulations depending on the country regarding how foreign income should be reported in the income tax return.
I am concerned that I may overlook potential tax advantages or disadvantages and therefore have problems with the tax office. Therefore, I would like to know from you how to correctly report my income from abroad in my income tax return and what impact this will have on my tax burden.
Can you please explain to me the specific regulations for stays abroad in relation to the income tax return and how I can best prepare for this? Are there any specific documents or certificates that I need for the tax return? I would be very grateful for your support and expertise in this matter.
Thank you in advance for your help.
Sincerely,
Jan Bittner
Dear Mr. Bittner,
Thank you for your inquiry regarding your income tax return and your work abroad. It is understandable that you are concerned about the tax implications of your stay abroad and how to correctly report your income to avoid potential issues with the tax authorities.
First and foremost, it is important to know that as a German citizen with a residence in Germany, you are still liable for taxes in Germany, regardless of whether you are working abroad for a certain period of time. This means that you must report your worldwide income in your German income tax return.
Regarding your work abroad, there may be different regulations depending on the country, on how to report foreign income in your income tax return. Generally, you will need to convert your foreign income into euros and report it in the "Anlage AUS" (foreign income attachment) of your income tax return. You can usually also claim deductible expenses, such as travel expenses, accommodation costs, or additional meal costs related to your stay abroad.
It is important to have all relevant documents and certificates ready for your tax return. These may include your employment contract, pay slips, receipts for deductible expenses, as well as certificates of taxes already paid abroad. These documents serve as proof for the information in your tax return and can be important in case of an audit by the tax authorities.
It is advisable to consult with a tax advisor early on to clarify your tax situation abroad and ensure that you can take advantage of all available tax benefits. A tax advisor can also help you avoid potential tax payments and optimize your tax burden.
I hope this information has been helpful and reassuring to you. If you have any further questions or need assistance, please do not hesitate to contact me.
Best regards,
Ralf Otten
Tax Advisor
