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Contracting in Germany and Global Incomes

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    Contracting in Germany and Global Incomes

    Hello It is my first post here

    I will try to summarize my problem in order to be clear. In 2015, I was a contractor in Spain from January to September (9 months), then I moved to Germany and I was contractor from October to November (3 months).

    According to double tax agreement between Germany and Spain, Spain considers me tax resident in 2015. This seems obvious, as I lived in Spain for more than 6 months.

    I am filing my tax declarations for the year 2015 both in Spain and Germany, and I am facing the following issues with my accountant in Germany:

    1. She is requesting proof of foreign incomes for year 2015. Why? I was not tax resident in Germany. Does it make sense?

    2. Then she said it would be the best to first file my tax declaration in Spain, and use it as proof of my foreign incomes.

    3. Since I was tax resident in Spain, I must declare all my global incomes in Spain, and pay taxes for them. But according to tax agreement between Germany and Spain, I can deduce tax paid in Germany.

    4. But the problem is that my accountant wouldn't tell me how much I will pay in Germany until my Spanish declaration is not ready. I.e., I cannot deduce it in my Spanish tax declaration.


    Is this a reasonable way to handle the issue? I would say my accountant just needs to file my tax declaration in Germany, considering I was not tax resident. Then I would do my declaration in Spain and deduce anything I must pay in Germany.

    Thanks!

    #2
    All I know is the Finanzamt are not be messed with - search the forum, probably manned by ex-Gestapo NASDAP members....

    Comment


      #3
      I presume you are still in Germany.

      Yes you do declare all your foreign income because although it isn't taxed it is used to calculate your tax rate on your German income for the final three months.

      This will be treated by the German tax authorities as a split year. Part of the year you were tax resident in Spain and the other part you were tax resident in Germany.

      Normally when you leave a country you don't declare any income after the date you leave, so probably you are taxed in Spain only on the 10 months. In Germany they will adjust your tax rate depending on your Spanish income.
      Last edited by BlasterBates; 21 June 2016, 15:28.
      I'm alright Jack

      Comment


        #4
        Originally posted by fruxi View Post
        Hello It is my first post here

        Is this a reasonable way to handle the issue? I would say my accountant just needs to file my tax declaration in Germany, considering I was not tax resident. Then I would do my declaration in Spain and deduce anything I must pay in Germany.
        You need to confirm if the income you earned in Spain will be taxed, sometimes there is requirement to "declare" any amounts earned in foreign country without any tax obligation.

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