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How the New US Tax Plan Impacts You

On December 20th, 2017, the United States Congress approved sweeping new changes to the US Tax Code. While many of the changes impact taxes for the 2018-2019 tax filing season, there are a number of changes that take effect immediately. As an expat, understanding these upcoming changes is the key to help you better manage…

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Freelancer Next Steps: How to Pay VAT Taxes in Germany

Your Finanzamt will ask you to initially submit monthly VAT returns for your VAT taxes (unless you are registered as a “Kleinunternehmer” – a micro business).You will have to report your monthly VAT liability to the Finanzamt and make VAT payments accordingly. The reporting (“Umsatzsteuervoranmeldung”) is done electronically via www.elsterformular.de where you also find the relevant forms.  At…

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How Do I Register As A Freelancer/Contractor In Germany?

How to Register as a Freelancer/Contractor? You need to register with your local Finanzamt as “selbständig”. You can find the required registration form at: https://www.formulare-bfinv.de Your Finanzamt will then issue a tax number for you. The registration is not as complicated as the 8 page form would suggest. You need to provide information on your…

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How Do I Show VAT on Invoices as a Freelancer or Contractor in Germany?

If you did not register as “Kleinunternehmer” you will in most cases have to show VAT on invoices if your customer is located in Germany. The most frequent domestic case we come across in which a VAT exemption applies is teaching income (if your customer is VAT exempt). If you provide a consulting service to…

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How Does Marriage Affect Taxes in Germany for Expats? Tax Classes

In most cases getting married is relevant for tax purposes. Married couples can file a joint income tax return (they can also opt to file separate returns and they can exercise this option from year to year). If one spouse is on a higher level of income than the other spouse it is beneficial to…

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Tax Rates on Income In Germany

Annual income of less than 9,168 € is not taxed at all. Income tax starts with 14,77% and gradually goes up to 44,31% (top tax rate applies to taxable income of more than 55,960 €). The amounts double for married couples filing joint returns. As your income goes up, the tax rates go up. This…

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