German Tax Law

Contents

IntroductionEdit

Sources of Law Effecting GermanyEdit

References & DefinitionsEdit

Taxation of Natural IndividualsEdit

  1. German Residents
    1. Taxation
      1. Income from German Sources
        1. International
          1. Multinational (i.e. EU)
          2. Bi-Lateral
            1. DTC's
              1. Uni-Lateral
                1. EStG §2(1) Income Source Identification
                  1. Agriculture and forestry income
                  2. Business income
                  3. Independent Personal Services
                  4. Dependent personal service income
                  5. Capital Investment income
                  6. Rental income
                  7. Other, income including annuities ad private short-term capital gains
                2. Non-taxed Sources (i.e. Exclusions from Sources)
                  1. Gifts, bequests, prizes & lottery winnings
                  2. Long term capital gains unless
                    1. Part of trade or business
                    2. Sale of corporate stock held as personal property
      2. Income from Other Worldwide (i.e. Non-German) Sources
        1. Taxation
          1. International
            1. Multinational (i.e. EU)
            2. Bi-Lateral
              1. DTC's
                1. Uni-Lateral
                  1. Tax Free Foreign Income
                    1. EStG §34(c)(5) Specific Employment Income when earned by DE Resident from Foreign Companies in Foreign Locations
                  2. Double Taxation Prevention i.e. Income earned by DE resident from Foreign Activities
                    1. Foreign Tax Act (i.e. AStG Außßensteuergesetz)
                      1. AStG §12, Gives Human DE Residents a Reduction in their DE Tax Paid based on Foreign Tax Already Paid on Foreign Income Earned via...
                        1. EStG §34(c)Foreign Tax Credit re Foreign Tax Paid by DE resident on Foreign Income earned
                          1. EStG §34(c)(1) Method 1: Maximum Limit Calculation re Foreign Tax Paid OR
                          2. EStG §34(c)(2) Method 2: Straight Deduction re Foreign Tax Credit Allowed
                        2. EStG Ordinance §68A
          2. Tax Avoidance Provisions
            1. Foreign Tax Act (i.e Außensteuergesetz)
              1. AStG §1 re Human Individuals
              2. Which Sections Apply? and what's the penalty?
                1. AStG §2 - 5
  2. Non-German Residents
    1. Income from German Sources
      1. Taxation
        1. International
          1. Multinational (i.e. EU)
          2. Bi-Lateral
            1. DTC's
              1. Uni-Lateral
                1. AO §1 Taxation on German Income Sources Only (i.e. limited liability)
    2. Income from Other Worldwide (i.e. Non-German) Sources
      1. Taxation
        1. International
          1. Multinational (i.e. EU)
          2. Bi-Lateral
            1. DTC's
              1. Un-Lateral

Taxation of Legal IndividualsEdit

Taxation of Partners & PartnershipsEdit

Permanent EstablishmentsEdit

Tax Optimization PlanningEdit

Tax AccountingEdit