Private tax compliance & advice
German personal tax compliance often feels extremely overwhelming, especially when international setups are involved.
With our extensive experience in international taxes we offer you expert support in plain language that helps you stay compliant:
Filing of income tax returns;
Filing of all necessary tax returns and forms for freelancers;
Communication with the tax authorities on your behalf;
Review of notices of assessment as well as filing of objections;
General tax advice for personal income tax.
I worked in Germany for the past 5 years but have never filed a German tax return. Do I have to file German tax returns, and do I face potential penalties?
If you are a German tax resident, you are taxed on your worldwide income (similar to the U.S. taxation rules) and you usually must file a tax return. An exemption applies if no other income (past certain thresholds) has been earned besides the employment income.
In addition to non-employment related income, foreign income received during a tax year (even if it is not taxable in Germany) often triggers filing obligations. If German tax returns have not been filed, although a filing obligation existed, (substantial) penalties might be imposed and the non-filing could potentially even lead to criminal charges for tax evasion. We can support you in determining whether you do have a filing requirement in Germany and, if so, help you to correctly file your tax returns.
Furthermore, it might be beneficial for you to file a German tax return (i.e. potential tax refund), even if you do not have a filing obligation.
I will be / have been granted shares from my employer. What are the tax implications?
When receiving shares from an employer, they are usually granted with a vesting schedule. From a tax perspective, there are substantial differences in taxation between different kinds of shares, granted by your employer.
While the employer should (in advance) determine the tax implications for its employees, the employee can also be held liable for incorrect tax treatments/withholdings. Therefore, it is important to correctly understand and analyse the kind of share granted and which events will trigger tax obligations.