# Tax break or something!!



## Turbineguy (Jan 10, 2008)

Hello all, I have just seen my first paystub from working here in Berlin. It is absolutely disgusting!! All in I have lost 50% of my pay. I had accepted 40% reluctantly because it was/is a decent job. Because my wife and kids have remained in Canada (university, and college) I have the luxury of claiming single here in Berlin which puts me right up on level 6 tax bracket which I am told is the highest!! When guys I work with married with children get a cozy level 3 Tax bracket (ok they were born here), but isn't married well married? What I would like to know is there any treaties or agreements between countries that can help reduce my rate? It has only been 2 months and I am thinking I made a mistake already, just because of this tax rate!! Any options, opinions, rumors, gossip or anything helpful would be greatly appreciated!!

Regards
Mike


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## James3214 (Jun 25, 2009)

Sorry to hear that Turbineguy, but Canada has a dual taxation agreement with Germany so you will only pay in one of the two countries and will probably get a lot of if it back at some stage. Does the 50% also include your health insurance contributions (which are also tax deductable)? You must be earning a good salary to go straight onto the max tax rate of 45%..but I agree it seems a bit of a shock but I think they put you on these tax rates until they prove your status. If you are married and your wife is in Germany I would of thought you would of been paying the same as your colleagues? Are you really that much out of pocket?


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## twostep (Apr 3, 2008)

Taxation has nothing to do with your birth:>)
I am guessing - you are filing single and are in a high income bracket. Yes, that can absolutely add up to 50%. You need to talk with a CPA (Steuerberater). Check with your coworkers who they are using or with your relo department. You will


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## Turbineguy (Jan 10, 2008)

Thanks for the reply James, the 50% does include the health insurance yes. And yes truely it is as close to 50% as can be!! Not sure what you may consider a good salary but the base rate is under 40,000 Euro. Although I do have the potential to make it as high as 90,000 Euro with overtime, bonuses and more. But still I thought you did not pay the max until you went over th 52,540 Euro point? As for my wife she is not here in Germany she stayed in Canada with the kids for school and support. But as I mentioned married is married!!
So you are saying my health insurance is a tax write off here? Any other write offs you know of? Can I write off my kids considering I am sending money home each month for them? Who decides if I pay tax here or in Canada because Canada is much cheaper for tax? I guess the part that really gets me is the being taxed as single just because my wife is not living here!! I wonder if the Embassy here has any good info on breaks and such!
Thanks again James for the reply it is always a pleasure.

Mike











James3214 said:


> Sorry to hear that Turbineguy, but Canada has a dual taxation agreement with Germany so you will only pay in one of the two countries and will probably get a lot of if it back at some stage. Does the 50% also include your health insurance contributions (which are also tax deductable)? You must be earning a good salary to go straight onto the max tax rate of 45%..but I agree it seems a bit of a shock but I think they put you on these tax rates until they prove your status. If you are married and your wife is in Germany I would of thought you would of been paying the same as your colleagues? Are you really that much out of pocket?


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## twostep (Apr 3, 2008)

James3214 said:


> Sorry to hear that Turbineguy, but Canada has a dual taxation agreement with Germany so you will only pay in one of the two countries and will probably get a lot of if it back at some stage. Does the 50% also include your health insurance contributions (which are also tax deductable)? You must be earning a good salary to go straight onto the max tax rate of 45%..but I agree it seems a bit of a shock but I think they put you on these tax rates until they prove your status. If you are married and your wife is in Germany I would of thought you would of been paying the same as your colleagues? Are you really that much out of pocket?


Head of household of one - he is considered single for taxes. Wife and kids have not moved their center of life to Germany. Unfortunately a not uncommon expat situation - questions unasked:>( HR, CPA, Steuerzahlerberatungsstelle ... I see no point of contacting the CA Embassy.


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## James3214 (Jun 25, 2009)

Turbineguy, I would recommend getting a 'Steuerberater' (Tax advisor) in Berlin that can speak English or at least contact one to get advice. You will probably need one anyway to fill in your tax returns next year and believe me apart from dealing with the 'financeamt' for any queries or problems, they can save you a lot of money and stress! Worth their fee ten times over in my opinion'.


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