tax system in Germany
April 22, 2020
As an investor or entrepreneur who has just entered Germany to start business, it is very wise to extend your knowledge in how the tax system […]
October 21, 2023
The German salary system is well-regulated to guarantee transparency, accuracy, and compliance with legal requirements. Employers are often responsible for accurately calculating and processing employee salaries according to German labor laws and contractual conditions.
Employees in Germany usually receive their salaries every month. The employers must provide their employees with detailed pay slips containing the various salary components, tax deductions, social security contributions, and other additional payments. They deduct some mandatory deductions such as income tax, social security contributions, health insurance contributions, and pension contributions directly from employees' salaries and pay them to the competent authorities.
January 6, 2024
An overview of the usual tax terms and the tax system in Germany
Tax terms are often difficult to understand. Since the German tax system is very complex, it becomes more difficult to understand these terms, especially for expats. Therefore, to avoid possible mistakes when paying taxes in Germany, you should familiarize yourself with some of the most common terms. The most important are:
• Tax Office: Finanzamt
• Gross salary: Brutto
• Net salary: Netto
• Salary certificate: Wohnbescheinigung
• Tax declaration: Steuererklärung
• Tax identification number: Steueridentificationsnummer
• Tax number: Steuernummer
• Tax rate: Steuersatz
If you are not thoroughly familiar with German tax terms and laws, we recommend seeking help from a tax advisor to fill out your tax return.
