Is it tax deductible to work in Germany? Many students studying in Germany found that their salary was less after their first job, and later learned that working in Germany is tax deductible.
Taxes related to working in Germany:
These taxes and fees are directly deducted from the income of working. Germany's policy towards international students is quite loose, and it only needs to pay very low taxes, and sometimes it doesn't even need to pay at all. These deductions include:
Payroll tax is personal income tax.
Social insurance: including endowment insurance, medical insurance, unemployment insurance, etc.
Others: There will be some miscellaneous taxes such as solidarity tax and religious tax in some areas.
About the tax card:
Working in Germany generally requires a tax card to record income and calculate the tax payable. The official tax card is valid for one year and can be collected at the local municipal office. It is an important basis for tax declaration.
After receiving the tax card, it is best to check whether the personal information recorded on the tax card is wrong, because they directly affect your tax payment. On the back of the tax card are some forms, on which the employer will directly fill in or paste a printed note to record your working hours, total salary, tax payment and social insurance.
The tax card must be given to the boss before the employment relationship begins. When the employment relationship ends, the boss will return the tax card. On the back of the tax card, it is clearly written, how much is the total income during the working period and how much tax is deducted.
Payroll tax payment regulations: calculate the tax amount of each taxpayer according to the income level.
About not paying taxes? Mini job? :
So-called? Mini job? That is, the monthly income is not higher than 400 euros, and there is no need to pay any taxes or tax cards. What if one person does multiple jobs at the same time? Mini job? The total income cannot exceed 400 euros, otherwise, you will pay taxes as usual.
If the annual income does not exceed 7664 euros, you can apply to the tax bureau for refund of the previous tax.
Monthly income exceeds 400 euros;
You need a tax card if your monthly income exceeds 400 euros. The monthly income is recorded on the back by the employer, and the tax to be paid will be automatically deducted from the income. The deduction rate is based on income and calculated according to different tax bands. The specific tax bands can be found here.
The income of international students studying in Germany is taxed to the German government. However, the German government is still very generous to international students, providing them with tax refund benefits. In some cases, they can apply for a refund of the tax paid in a year at the end of the year, but it must comply with the government's regulations on tax refund, which does not mean that they can refund all taxes.
Tax refund regulations:
First of all, foreign students, as students, must have a student visa, otherwise they are not entitled to student tax refund.
Secondly, Germany stipulates that the annual income below 7664 euros is tax-free and does not have to pay any tax. Therefore, if the annual income of international students does not exceed 7664 euros, the tax paid by high income in some months of the year can be refunded. For example, during the long vacation, the income of international students will be higher than 400 euros, exceeding the threshold of individual tax.
Moreover, which taxes can be refunded? Only the salary tax, religious tax and solidarity tax paid before can be refunded. As for the other items on the payroll, they are all of an insurance nature and cannot be refunded.
In addition, every state in Germany has a wage ceiling, which varies from state to state every year. According to the per capita income and price index of each state. If the annual income exceeds this limit, the tax paid cannot be fully refunded. However, we can provide some proof of lowering the income level. To put it bluntly, it is legal tax avoidance.
Income deduction:
Here are some proofs that you can raise the income ceiling. International students can provide some special certificates, raise the salary ceiling and strive for more tax rebates. However, it does not mean that all the expenses of international students can offset their income. Generally, work-related expenses can be identified by the tax bureau, and sometimes some study expenses can also be identified, but evidence must be provided. For example:
Travel expenses during work: the place of work is far from the place of residence, such as train, car, gasoline, etc.
The cost of buying work clothes and appliances, as well as the cost of finding a job, such as telephone and postage.
Receipts for training courses outside the university; The cost of purchasing large school equipment such as computers.
It is worth noting that the judgment of the nature of the bill is flexible, and whether the certificate is recognized depends on the scale of different tax officials' mastery of the policy. Even so, let's not miss any chance. After all, whenever possible, we should work hard for hard-earned money. ;