Taxes in Germany,
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Join Date: Feb 2008
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Taxes in Germany,
Hi all,
Can any one inform me what the taxes are in Germany for pilots. Do they get any tax discount?..I heard somewhere that they only pay 20% from their first 40thousend Euros! im not sure that is true.
Can any one inform me what the taxes are in Germany for pilots. Do they get any tax discount?..I heard somewhere that they only pay 20% from their first 40thousend Euros! im not sure that is true.
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The German tax system is extremely complicated and subject to permanent "fine-tuning" as seems fit by the government. Even most Germans are using an accountant (Steuerberater) for there returns. A foreigner will have no choice, there is no way of wading through all the bits and pieces of the law (Einkommensteuergesetz = EStG).
It is not possible to determine the exact amount of tax you may have to pay by just looking at the income. There are several different tax classes, each reflect different circumstances (unmarried, married, married with two income per household, kids, houseowner etc....). Beside this, a considerable amount of the due tax can be deducted again partially or in full if job related (office, car, commuting costs, overtime allowances....)
The employer has to deduct the tax at source. Every month your total annual income will have to be "guessed" and taxes are deducted accordingly.
And no, flightcrew are not artists, students or any individuals considered to fall into the low-tax paying community.
Don't listen to any tax adviser / return filing software, they are not tailored for flightcrew.
And the tax is not the only part of all the deductions you will have to pay.....
It is not possible to determine the exact amount of tax you may have to pay by just looking at the income. There are several different tax classes, each reflect different circumstances (unmarried, married, married with two income per household, kids, houseowner etc....). Beside this, a considerable amount of the due tax can be deducted again partially or in full if job related (office, car, commuting costs, overtime allowances....)
The employer has to deduct the tax at source. Every month your total annual income will have to be "guessed" and taxes are deducted accordingly.
And no, flightcrew are not artists, students or any individuals considered to fall into the low-tax paying community.
Don't listen to any tax adviser / return filing software, they are not tailored for flightcrew.
And the tax is not the only part of all the deductions you will have to pay.....
Join Date: Apr 2005
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The 20% mentioned is definitely NOT correct.
In Germany (at least at the moment) most shift workers gain certain tax advantages by working Sundays and public holidays. Smaller companies deal with this on an individual basis which means that your net income can vary quite a bit from month to month.
Larger companies such as Lufthansa agree an average figure with the tax authorities and I think this is where the confusion with the 20% comes from. The actual figure is 16.3% tax free. You will often see this mentioned on the pay scales of ppjn.com.
There are also important tax advantages available for those coming out of training. I know of at least one person who managed to pay no tax for three years as an offset of his training costs, which as the previous answer mentioned, shows the importance of getting good advice.
KT
In Germany (at least at the moment) most shift workers gain certain tax advantages by working Sundays and public holidays. Smaller companies deal with this on an individual basis which means that your net income can vary quite a bit from month to month.
Larger companies such as Lufthansa agree an average figure with the tax authorities and I think this is where the confusion with the 20% comes from. The actual figure is 16.3% tax free. You will often see this mentioned on the pay scales of ppjn.com.
There are also important tax advantages available for those coming out of training. I know of at least one person who managed to pay no tax for three years as an offset of his training costs, which as the previous answer mentioned, shows the importance of getting good advice.
KT
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Check out this useful site (read the notes before entering any numbers, as they disappear once you start typing!):
German Wage Tax Calculator
German Wage Tax Calculator
