Taxation upon marriage
January 9, 2011 | 30,00 EUR | answered by StB Kiehne Katja Kiehne
Hello,
I am a single father and got married in Russia on December 31, 2010. The recognition of the marriage here in Germany as well as the family reunification is now being applied for and should be completed by approximately April.
My wife also has a daughter who is currently still working at her company in Russia, but only earns about 10,000 Rubles (approximately 230 euros) per month.
What does the marriage mean for us in terms of taxes and what do we need to consider since my wife and her daughter will be in Russia in 2010 and likely until the end of March 2011?
In this case, will we be taxed based on the splitting table for the entire year of 2010? How should her income in Russia be treated/declared and what about the tax exemption for single parents that I claimed in 2009?
What else do we need to consider?
Dear questioner,
In the context of an initial consultation and taking into account your fee commitment, I answer your question as follows:
Since your wife is moving to Germany in 2011 and will become subject to unlimited income tax liability here, the splitting table is to be applied for the entire year 2011.
Your wife's income (salary) is taxable in Russia and is exempted from taxation here (Art 15 DBA Russian Federation). The taxation in Russia must be proven in Germany. These earnings from your wife's employment are subject to the so-called progression clause (§32b EStG). The income is therefore taken into account in the calculation of your income tax rate, without being subject to income tax itself.
For 2009, you would still be entitled to the tax-free allowance for single parents, as the requirements for joint assessment (splitting table) are not yet met. Your wife is not yet subject to unlimited income tax liability.
I hope that I could help you with this information. I am happy to offer my assistance in preparing your income tax returns.
Best regards,
Katja Kiehne
Tax consultant
Master of Business Consulting (M.BC.)
Dipl.-Finanzwirtin (FH)
Tel.: 0160/94653007
