Tax class in taxation in different countries
February 26, 2013 | 35,00 EUR | answered by Dr. Yanqiong Bolik
Hello,
I have been married since December 2012, but I am not quite sure which tax class I can now claim.
The situation is as follows:
- My husband is American
- We have a shared apartment in London
- My husband works in London for an English university with an annual income of approximately 55,000 pounds, which is also taxed in England (regular taxation)
- I work in Germany during the week, where I maintain a second apartment, for a German company and am also taxed in Germany, my annual income is approximately 90,000 EUR
Based on all the information I have found so far, I am still in tax class I. Is that correct? I was considering whether, given that my husband's current income comes from a scholarship (Royal Society Fellowship), one could argue that such a scholarship would potentially be tax-free in Germany (e.g. Humboldt Fellowship).
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into account your input and the rules of this platform.
Please note that my explanation is based on the situation presented, and that adding, omitting, changing information, or the ambiguity of the information can alter the tax result.
According to your description of the situation, your husband does not have a residence within the meaning of § 8 AO in Germany nor a habitual abode within the meaning of § 9 AO, and his income is taxed in England. Therefore, he is not subject to unlimited income tax liability in Germany. However, with your residence in Germany, you are subject to unlimited income tax liability in Germany. This puts you in tax class I (§ 38b para. 1 sentence 2 no. 1a) bb) EStG). This classification is independent of whether your husband's income from England could be considered tax-free under German tax law. Unfortunately, the conditions for tax class III for you are not met in the situation you have described.
I hope this information is helpful to you.
If you have any further questions, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax advisor
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: steuer@zdbz.de
www.steuerberatung.zdbz.de
