# Tax liability on dependent



## risharisha (Dec 3, 2014)

Hi All,
Need your urgent input on german tax laws.
I will expain my situation, I am from India and came to germany on Work permit for 180 days (to be sepecific from 17th Nov 2014 to 15th May 2015) not more than that , I arrived in Frankfurt on 17th Nov 2014. I will be continued to get salary in India and I will be paying tax in India for all these months. In germany I will be getting per diem (Daily allowance) only. Even I will be paying tax on these per diem in India. All the other expenses like accommodation, phone, travelling will be borne by company in germany. Per diem which I am getting will be used for food and daily expenses. So i am not liable to pay any tax as I am not going to stay here permanently. And I am not getting any german salary.

As I will be living here for around 6 months I am planning to bring my Family (Wife & Son) here around 15th Dec 2014, they already got dependent visa last week. I was then informed by my employer in India, if you take your family along with you they will be liable to pay tax in germany from day-1. I was totally shocked to here that and was completely lost, I tried to search about german tax laws about dependents in google but didn´t got much help. I will not be laible to pay tax but my family will be?? Is this correct?

They are saying one more thing, german financial year is from Jan-dec, and If I take my family on 15th Dec 2014 till 15th May 2015, you will be liable to pay tax for both finacial year 2014 & 2015, is itlike that?? they said german tax authority will take into considiration your indian salary and the per diem which I am getting in germany to calculate the tax. 
Even though we have Double tax treaty signed between germany and india, you have to pay tax for your family. is the german law like that?? 
I am really distured after hearing all this stuff, and need some help on this topic. My family can´t stay alone for such long period and I want them to bring them here. please let me know what to do???

Regards,
RishaRisha...


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## _shel (Mar 2, 2014)

I think you'll find your employer is misleading you. If they have enough presence in Germany to sponsor your visa they are obliged to withhold taxes even if paying you in India. 

And yes, if someone is present in both tax years they will be liable each year. Your allowances are also taxable in Germany. 

You realise your intent not to stay permanently has not much to do with if you are a tax resident? If you are living there you will be liable for tax after a few months.


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## risharisha (Dec 3, 2014)

Shel , My employer informed me that if you stay alone you will not be liable for any taxes. But if you take your dependent along with you they will be only liable to pay tay but not you. and they will be taxable in germany on your indian income and your per day allowance, both. Even you call them for couple of month they will be taxable. 
How is that possible, then what about double taxation treaty between Germany and India.


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## _shel (Mar 2, 2014)

Your employer is lying. Assuming they have a German registered base if they obtained your visa? 

You may be liable for some taxes if they are with you or not. 
They may be liable for tax if they come with you. Both dependent on length of and habitable residence. Double taxation treaties don't mean you dont have to pay tax, just that some tax will be not claimed if paid elsewhere and one country will usually have more claim to the tax than the other, usually the country you actually reside in. Living there alone gives no basis to not pay tax because being a tax resident has nothing to do with bringing family along.


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## risharisha (Dec 3, 2014)

I am not worried if I will be liable to pay tax or not, my all the expenses will be borne by company. If I am liable to pay tax that also company will be taking care of. I am worried if I call my dependent whether they will be taxable even if they will not be working here, and how this tax will be calculated and on what basis and how it will be collected?
Is it like that if I bring my dependent members, Company will be liable to pay more taxes? as compare to the one as you said they are liable to to pay as I am here.


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## _shel (Mar 2, 2014)

No they are not liable to pay them. They are liable to deduct from your wages and hand them over in payment of your taxes.


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## risharisha (Dec 3, 2014)

Hi Shel, Suppose I bring them from 1st Jan 2015 till March 2015, then this whole tax calculation will be done in next year while filing the tax return right? if they stay with me for 3 months taxabiliy will be for 3 month only or for entire year??


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## risharisha (Dec 3, 2014)

My employer is still not convinced that there is no tax liability on dependent.
I have another question can I convert my spouse dependent visa to tourist visa, as any ways she will not be accompaning me more than 3 months.


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## beppi (Jun 10, 2013)

If you work and reside in Germany, you are tax-liable with your whole world income (no matter where and how it is paid).
Everything else that your employer tells you is wrong!
Having a dependent with you actually lowers your tax rate in Germany (provided the dependent has no own income).


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