Church tax reduction
December 16, 2011 | 20,00 EUR | answered by Michael Herrmann
Hello,
I am leaving my employer on December 31, 2011, and they will pay me a severance package for it.
I left the church 10 years ago, but my wife is a member of the Protestant church and we file our taxes jointly.
I don't think my employer will deduct church tax from the severance package (just like they don't from my regular paychecks).
1. Do I have to pay church tax for my wife in our income tax declaration?
2. Does the five-fifths rule apply to this as well?
3. Can I apply for a 50% exemption for the church tax portion of my wife, so that ultimately I only have to pay for 25%?
Best regards,
Rainer B.
Dear inquirer,
First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and considering your involvement in an initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can affect the legal outcome.
The collection of church tax is governed by the church tax regulations of the respective diocese or regional church in which you reside.
Church tax for a spouse belonging to a church is levied as special church tax if the taxpayer themselves are non-religious. The special church tax is collected in accordance with staggered tax tables. It is based on the taxable income of the spouses, which is determined by the application of Section 51a (2) Sentences 1 and 2 of the Income Tax Act.
Special church tax is only levied if the respective church tax regulations provide for it. Employers do not withhold church tax, as the collection of special church tax is reserved exclusively for the assessment procedure. This means that the church tax is only determined in the income tax assessment if you live in a region where special church tax is collected.
Exemption from church tax is generally possible in cases of extraordinary income, such as severance pay, through a discretionary regulation. To do this, you must submit an application to the relevant church tax office (not the tax office).
I hope that this information has provided you with a sufficient overview of the situation within the scope of your involvement and this initial consultation.
Yours sincerely,
Michael Herrmann
Tax advisor
Diploma in Financial Management (FH)
