Tax Question

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:09AM in AAT student discussion
Wondering if you can help me with the following tax question my friend has asked me.<BR><BR>I am part of the army in germany and currently pay uk income tax. I have been given too stories that may or may not be true. <BR><BR>- 1st we can stay here for 183 days still paying uk tax but after this period we must enter the german tax system but there is a possibility of facing a bill of up to 5000 euro after a six month period.<BR><BR>- 2nd that we can get a letter of exemption from the german system providing we are still paying uk income tax as under tax rules we cant pay tax twice. Under german tax system we can pay up to 50% tax.<BR><BR>Can you help or advise as to which is correct or if either are not accurate?<BR><BR>Thanks in advance.<BR><BR>Kris

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Tax Question

    As far as I am aware as you are in the army and are paid by the MOD, you come under UK tax laws and would pay income tax through your pay to the UK government just as you would if you were stationed in the UK.<BR>Does this answer your question??
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Tax Question

    Thanks for replying. I was mistaken reguarding the army part, my friend actually works for an english civilian company(UK firm) based in germany. <BR><BR>He is coming close to the 183 day german tax rule, and needs to discover who he needs to be paying tax to.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Tax Question

    If you are absent for 183 days and visits to the uk, averaged over a 5 year period are less than 91 days you are treated as non resident in the UK. By implication, you will be resident in Germany, and taxed there. Their rates of tax are very high and include local taxes and a solidarity tax to finance the reunification. It may be worthwhile to keep UK residence by using protracted holidays, if possible. The only other solution is to try to negotiate a deal whereby you get compensate for any excess taxation.

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