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Taxation of Ukrainians in Germany
Germany is one of the most attractive countries for Ukrainians who want to emigrate. This is due to the high standard of living, developed economy, and social security.
However, moving to Germany involves several legal and financial issues, one of which is taxation.
So let’s consider the main rules of taxation of Ukrainians in Germany.
Legal basis
The legal bases of taxation in Germany are the German Constitution, the German Tax Code, and other legal acts.
At the same time, the German Constitution enshrines the principle of equality of all citizens before the law, including the principle of equality in taxation.
The German Tax Code contains general taxation rules, as well as rules for taxation of certain types of income.
The main tax rates in Germany are as follows:
- Personal income tax (Lohnsteuer) – progressive rate from 14 to 45%.
- Value-added tax (Umsatzsteuer) is a flat rate of 19%.
- Property tax (Grundsteuer) – depends on the value of the property.
- Inheritance and gift tax (Erbschafts- und Schenkungsteuer) – progressive rate from 7 to 50%.
Tax liability of Ukrainians in Germany:
- Income tax. This tax is payable on all income received in Germany, regardless of the taxpayer’s nationality.
- VAT. This tax is paid on all goods and services supplied in Germany.
- Property tax. This tax is paid on ownership of real estate in Germany.
- Inheritance and gift tax. This tax is payable on receiving an inheritance or a gift in Germany.
Tax residency is important for determining tax liability in Germany. A person who stays in the country for at least 183 days in a calendar year is considered a tax resident of Germany.
If a person is not a tax resident of Germany, he pays tax only on income received in Germany.
Several tax benefits are provided for Ukrainians moving to Germany.
These benefits include:
- Tax deduction for family expenses. This discount is available for families with children.
- Tax deduction for education expenses. This discount is given to persons studying in educational institutions in Germany.
- Tax discount for health care expenses. This discount is given to persons undergoing rehabilitation in Germany.
Filing a tax return
In Germany, the tax return is submitted every year by July 31 of the following year.
Both individuals and legal entities can submit a tax return. Also, the tax declaration can be submitted electronically or in paper form.
So, taxation in Germany is a complex system that is regulated by a large number of legislative acts.
To correctly fulfill their tax obligations, Ukrainians moving to Germany are advised to consult a tax lawyer.
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