Tax declaration in Neubrandenburg
February 4, 2013 | 50,00 EUR | answered by Michael Herrmann
I live as a retired official abroad and am not registered in Germany so far. Tax is deducted from my pension, about 30%. I am married and have two children who are studying in Germany. My question is whether it is more advantageous for me to register and claim any tax exemptions or to file a tax return through the Neubrandenburg tax office.
Dear inquirer,
first of all, thank you very much for your inquiry, which I would be happy to answer based on the information you provided and in the context of your request for initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
If you do not have a residence in Germany, you are generally subject to limited tax liability. Limited tax liability includes several disadvantages, as you will be taxed according to the basic rate and several tax deductions will not be granted.
If you earn less than 10% of your income abroad, you can become subject to unlimited tax liability upon request. You will then submit a tax return in Germany like a resident. The foreign income must also be reported. The responsible tax office is still the Neubrandenburg Tax Office.
The Neubrandenburg Tax Office provides a detailed overview of the issue on its website:
http://www.finanzamt-rente-im-ausland.de/steuererklaerung/beschraenkt_unbeschraenkt/
If the option for unlimited tax liability is not possible because you have additional income, the only option left is to establish a residence or habitual residence in Germany. However, it is not sufficient to just register.
The legal definition of a residence is: A person has a residence where they have a place of abode under circumstances that suggest they will maintain and use the residence. Therefore, at least renting and temporarily using an apartment is required.
Habitual residence is defined as follows:
A person has a habitual residence where they stay under circumstances that indicate they are not only staying temporarily at that location or in that area. A continuous stay of more than six months is always considered a habitual residence within the scope of this law; short interruptions are disregarded. This does not apply if the stay is exclusively for visiting, recreation, treatment, or similar private purposes and does not last longer than one year.
You should assume that the tax office will rigorously verify the presence of these conditions and that it does not depend on the registration requirements, which are only considered as an indication.
Unfortunately, based on the information provided, it is not possible to make an accurate prediction of which tax liability option is more favorable for you. If there are no significant additional income, especially if your wife is not employed, opting for unlimited tax liability should be more beneficial.
I hope that these explanations have provided you with a sufficient overview of the situation within the scope of your request and this initial consultation, and remain
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor
