Ryanair FO German base
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Ryanair FO German base
Hi everyone,
So far I've heard that that Germany is probably the worst country to be based in in terms of social contributions and taxes. So I was wondering whether there are any German based FOs with a McGinley contract who can clarify.
I've talked to all 3 accounting companies which work with FR and I was told partly quite different information. Contracting PLUS told me that I would have to pay only the employee's part whereas the other two said that I'd have to pay the employer's par as well. The contributions are in total 42,29% of the gross salary (21,76% for the employer and 20,52% for the employee). Therefore it's obviously a big difference.
What I also don't undestand is whether I can count my business expenses towards the social contributions or only towards the Irish tax. E.g. with a gross income of let's say 5000 EUR per month and expenses of 4000 EUR I would pay way less social contributions than without the expenses. Is that so or do the expenses influence only the Irish tax?
Many thanks!
So far I've heard that that Germany is probably the worst country to be based in in terms of social contributions and taxes. So I was wondering whether there are any German based FOs with a McGinley contract who can clarify.
I've talked to all 3 accounting companies which work with FR and I was told partly quite different information. Contracting PLUS told me that I would have to pay only the employee's part whereas the other two said that I'd have to pay the employer's par as well. The contributions are in total 42,29% of the gross salary (21,76% for the employer and 20,52% for the employee). Therefore it's obviously a big difference.
What I also don't undestand is whether I can count my business expenses towards the social contributions or only towards the Irish tax. E.g. with a gross income of let's say 5000 EUR per month and expenses of 4000 EUR I would pay way less social contributions than without the expenses. Is that so or do the expenses influence only the Irish tax?
Many thanks!
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I'm not with FR, but I can tell you something about german taxation laws.
There are five kinds of taxes in Germany. Three of these are social and two salary.
Salary:
Einkommensteuer: Salary tax, which goes linearly from 24-38% - and now come the complicated part - continues to go up to 42% however only on the ammount above 55.000euros. You will have an ammount of 8400€ that is free every year and is not counted into the total amount.
Solidaritätszuschlag: 5,5% of your annual paid taxes. So let's say you are paying 20.000€ in annual taxes. Hence you would pay 1.100€ in "Soli". It's a tax that was invented after 1989 to help rebuild east-Germany. Nobody really knows why it's still around. Ask Merkel.
Now to the Social taxes:
Krankenkasse: Health insurance. In Germany you will have to pay 50% of this if you are employed and 100% if you are self employed. There are a thousand different companies to choose from. Private and "Allgemeine" basically public ones. One sounds fancier than the other, but in the end you can get the same coverage from both, hence one (allgemeine) is a lot cheaper.
Rente: Pension. This is split up 50/50 between you and your employer (Ryanair) or yourself if you have your own company. So 9,35% if you're employed or 18,7% if self employed.
Arbeitslosenversicherung: Unemployment tax. 3% if you are employed and 0% or voluntary 3% if you are self employed.
In the end, the McGinley contracts will in Germany count as self employment.
On top of all these taxes, the german fiscal authorities are usually quite keen on costs that you produce for work. E.g. you'll never have an issue getting tax exemptions for basically anything you'll need for work (of course you'll need two new macbooks each year, an iphone, a xerox printing machine etc). You are even able to declare a room of your appartment as working space and claim an exemption for it rent/m². I would suggest you to get a GERMAN tax advisor and not some shady company that is connected to FR.
Hope this shed some light into the dark.
There are five kinds of taxes in Germany. Three of these are social and two salary.
Salary:
Einkommensteuer: Salary tax, which goes linearly from 24-38% - and now come the complicated part - continues to go up to 42% however only on the ammount above 55.000euros. You will have an ammount of 8400€ that is free every year and is not counted into the total amount.
Solidaritätszuschlag: 5,5% of your annual paid taxes. So let's say you are paying 20.000€ in annual taxes. Hence you would pay 1.100€ in "Soli". It's a tax that was invented after 1989 to help rebuild east-Germany. Nobody really knows why it's still around. Ask Merkel.
Now to the Social taxes:
Krankenkasse: Health insurance. In Germany you will have to pay 50% of this if you are employed and 100% if you are self employed. There are a thousand different companies to choose from. Private and "Allgemeine" basically public ones. One sounds fancier than the other, but in the end you can get the same coverage from both, hence one (allgemeine) is a lot cheaper.
Rente: Pension. This is split up 50/50 between you and your employer (Ryanair) or yourself if you have your own company. So 9,35% if you're employed or 18,7% if self employed.
Arbeitslosenversicherung: Unemployment tax. 3% if you are employed and 0% or voluntary 3% if you are self employed.
In the end, the McGinley contracts will in Germany count as self employment.
On top of all these taxes, the german fiscal authorities are usually quite keen on costs that you produce for work. E.g. you'll never have an issue getting tax exemptions for basically anything you'll need for work (of course you'll need two new macbooks each year, an iphone, a xerox printing machine etc). You are even able to declare a room of your appartment as working space and claim an exemption for it rent/m². I would suggest you to get a GERMAN tax advisor and not some shady company that is connected to FR.
Hope this shed some light into the dark.
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Interesting topic since I might be based in Germany, too.
Can one also get tax exemptions for a car and fuel, oil and regular maintenance connected to it?
I wasn't aware that you could declare a room as working space especially as a pilot.
A German tax advisor would be the best choice but I don't think Ryanair contractors are allowed not to use the 3 accounting companies that work with Ryanair.
Can one also get tax exemptions for a car and fuel, oil and regular maintenance connected to it?
I wasn't aware that you could declare a room as working space especially as a pilot.
A German tax advisor would be the best choice but I don't think Ryanair contractors are allowed not to use the 3 accounting companies that work with Ryanair.
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Jerry Lee
The "Entfernungspauschale" basically "commuting deduction" is 0,30€ per km distance from work, the airport. BOTH WAYS! This is ONLY the case for aircrews, unless it's one way. The maximum deduction you can get is 4700€ per year and you can either chose to get it in form of (1.) a tax return or (2.) in form of a "Freibetrag" basically a monthly tax exemption.
In case of (1.) you will need to maintain a "Fahrtenbuch". Basically a logbook (including gas receipts) of EVERY ride you make. No matter if private or work related.
In case of (2.) you can by showing your rosters prove that you will have around so and so many rides to the airport every month. Thereafter a tax exemption per month is put into your "Lohnsteuerkarte". This is the document that you (self employed) or your employer maintains to calculate your monthly/yearly tax payments.
You can also get a deduction on lease costs of your car. You then however have to prove that you are using your car to a certain extent just for work related purposes. I'm not sure, but I've heard something about 70%.
The "Entfernungspauschale" basically "commuting deduction" is 0,30€ per km distance from work, the airport. BOTH WAYS! This is ONLY the case for aircrews, unless it's one way. The maximum deduction you can get is 4700€ per year and you can either chose to get it in form of (1.) a tax return or (2.) in form of a "Freibetrag" basically a monthly tax exemption.
In case of (1.) you will need to maintain a "Fahrtenbuch". Basically a logbook (including gas receipts) of EVERY ride you make. No matter if private or work related.
In case of (2.) you can by showing your rosters prove that you will have around so and so many rides to the airport every month. Thereafter a tax exemption per month is put into your "Lohnsteuerkarte". This is the document that you (self employed) or your employer maintains to calculate your monthly/yearly tax payments.
You can also get a deduction on lease costs of your car. You then however have to prove that you are using your car to a certain extent just for work related purposes. I'm not sure, but I've heard something about 70%.
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Other usual pilot costs eligible to tax deductions:
Training costs:
- ATPL - If you can prove that the ATPL was your second education. Highschool doesn't count.
- Type rating
- Assessment costs (Sim, hotel, taxi from the airport, flight there etc.)
Accessories:
- Mobile phone (if it says in your contract that you will need a phone for work)
- Laptop
- Pilot bag (Rimowa or whatever you chose)
- Headset
- Dry cleaning of your uniform
Transportation/Layover costs:
- Taxi (on duty and as long as it's not covered by your employer)
- Homeleave tickets (see below)
- Entfernungspauschale (see above post)
It is also very advisable to maintain your german apartment as your second home "Zweitwohnsitz". This of course only if you are from abroad or if you have another apartment in Germany and the one close to the airport only is used for work. Why? Because you can take use of tax deductable homeleave tickets AND deduct a huge amount (around 70%) of the rent of that second apartment. For this however you will have to prove that you have a "Hauptwohnsitz" (main domicile). This "Hauptwohnsitz" usually has to cost more than your "Zweitwohnsitz", just to prove that your work/standby apartment is only for work related purposes.
Training costs:
- ATPL - If you can prove that the ATPL was your second education. Highschool doesn't count.
- Type rating
- Assessment costs (Sim, hotel, taxi from the airport, flight there etc.)
Accessories:
- Mobile phone (if it says in your contract that you will need a phone for work)
- Laptop
- Pilot bag (Rimowa or whatever you chose)
- Headset
- Dry cleaning of your uniform
Transportation/Layover costs:
- Taxi (on duty and as long as it's not covered by your employer)
- Homeleave tickets (see below)
- Entfernungspauschale (see above post)
It is also very advisable to maintain your german apartment as your second home "Zweitwohnsitz". This of course only if you are from abroad or if you have another apartment in Germany and the one close to the airport only is used for work. Why? Because you can take use of tax deductable homeleave tickets AND deduct a huge amount (around 70%) of the rent of that second apartment. For this however you will have to prove that you have a "Hauptwohnsitz" (main domicile). This "Hauptwohnsitz" usually has to cost more than your "Zweitwohnsitz", just to prove that your work/standby apartment is only for work related purposes.
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Flight training was my second education. TR and assessment cost will be taken into account even though I got in through APC.
Before getting the job I was already living in Germany with my family (we aren't Germans). Thanks for the tips!
Before getting the job I was already living in Germany with my family (we aren't Germans). Thanks for the tips!
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Jerry Lee
No, only your rides to and from work are deductable. Or from from your main domicile to work (you will however need to prove these rides with a logbook in case you tell them that you are travelling extensive distances a lot).
FlightDetent
Soli is only calculated with your taxed salary. Example: You are paying 20.000€ in annual taxes. In this case your Soli would be 5,5% of 20.000€ = 1.100€ a year or 92€/month.
I forgot about church tax. Hitler invented it in the 30s and it's still around. It's a certain percentage of your salary but I don't know how much it is, since I left the church many many years ago.
Also, regarding your flight training. You can ONLY claim tax returns on your ATPL or any training related expenses if you had your main domicile within Germany or if you were within the german taxation system while this training was accomplished. And this also only if it is dated a maximum of three (!) tax calendar years back in time. Means, right now, you would be able to claim returns for 2015, 2016 and 2017.
No, only your rides to and from work are deductable. Or from from your main domicile to work (you will however need to prove these rides with a logbook in case you tell them that you are travelling extensive distances a lot).
FlightDetent
Soli is only calculated with your taxed salary. Example: You are paying 20.000€ in annual taxes. In this case your Soli would be 5,5% of 20.000€ = 1.100€ a year or 92€/month.
I forgot about church tax. Hitler invented it in the 30s and it's still around. It's a certain percentage of your salary but I don't know how much it is, since I left the church many many years ago.
Also, regarding your flight training. You can ONLY claim tax returns on your ATPL or any training related expenses if you had your main domicile within Germany or if you were within the german taxation system while this training was accomplished. And this also only if it is dated a maximum of three (!) tax calendar years back in time. Means, right now, you would be able to claim returns for 2015, 2016 and 2017.
Last edited by lansen; 19th Jan 2018 at 12:54.
Just declare yourself an atheist, and you don't have to pay church tax. Otherwise the percentage is depending on which religion you subscribe to; Catholic is cheaper than Protestant, to give just one example.
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Also, regarding your flight training. You can ONLY claim tax returns on your ATPL or any training related expenses if you had your main domicile within Germany or if you were within the german taxation system while this training was accomplished. And this also only if it is dated a maximum of three (!) tax calendar years back in time. Means, right now, you would be able to claim returns for 2015, 2016 and 2017.
Good to know. If I get the job and get based here in Germany I might send you a private message, but I am sure I will not be allowed not to work with the 3 accounting firms that collaborate with Ryanair.
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The "Entfernungspauschale" basically "commuting deduction" is 0,30€ per km distance from work, the airport. BOTH WAYS! This is ONLY the case for aircrews, unless it's one way. The maximum deduction you can get is 4700€ per year and you can either chose to get it in form of (1.) a tax return or (2.) in form of a "Freibetrag" basically a monthly tax exemption.
In case of (1.) you will need to maintain a "Fahrtenbuch". Basically a logbook (including gas receipts) of EVERY ride you make. No matter if private or work related.
In case of (1.) you will need to maintain a "Fahrtenbuch". Basically a logbook (including gas receipts) of EVERY ride you make. No matter if private or work related.
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Then your Finanzamt was nicer than mine. With me they wanted proof of basically everything. Since I didn't have a logbook for all of those rides, they gave me an estimated amount of "free rides" (to and from my homebase) per month.
I would be careful with easydutyplan. It's a nice tool if you do it right. If you exaggerate, which is easily done in the program, you run a big risk of having to pay more in the end or much worse, get a yellow letter that states you have two weeks to pay a huge amount of money to them.
I would be careful with easydutyplan. It's a nice tool if you do it right. If you exaggerate, which is easily done in the program, you run a big risk of having to pay more in the end or much worse, get a yellow letter that states you have two weeks to pay a huge amount of money to them.
