# :confused: Few Quetions about German Indivisual Income Taxation



## likith_jogi (Feb 4, 2013)

Hi Buddies,

i have few doubts about german indivisual income tax.

if i'm working in a company, which tax will be applied. Wage tax or Income Tax ?

if i'm working on a work visa. Will there be a deduction for Social Security, Pension, Unemployment Insurance and Disability Insurance from my salary?

Why do they deduct money for Disability Insurance when money is already deducted for Health Insurance. Health Insurance will cover both right?

what is Solidarity Surcharge. do i have to pay that too if i'm on work visa?

Thanks,
Likith


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## James3214 (Jun 25, 2009)

In Germany, like most other countries you have to declare and pay 'income tax' on your total income that includes wages, bonuses and any other money you receive.
In addition to this you must pay health insurance but can also add additional (optional) insurances such as unemployment, care (elderly), disability, third party so you should consider what you really need. I'm self employed but I only pay the obligatory health insurance and optional third party (or is it compulsory, i'm not sure?)
The 'Solidarity surcharge' you mention must also be paid and I think it is only 1% of the total bill of your tax. This goes to help rebuild the former reunited eastern (former DDR) states of Germany.
There is also an optional 'church tax' that you can pay! 
Sorry, but on a work visa you don't escape any of these many taxes that they have in Germany!


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## MrTweek (Jan 9, 2013)

First of all: you don't really need to worry about this for now. Your employer has to deduct anything that you have to pay from your salary. Whatever ends up on your bank account is your. You will also get a payslip that lists all of these in detail.

This is what is deducted from every employees payslip.
* Income tax - mandatory
* Solidarity surcharge (Solidaritätszuschlag) - mandatory
* Church tax - only for registered members of a church.
* Health insurance - mandatory if you don't have other (private) health insurance.
* Carer insurance - (I think) mandatory, but maybe replacable by something private as well
* Pension fund - mandatory (there might be exceptions if you are on a temporary work visa, I don't know)
* Unemployment insurance - mandatory (again, might be different on a temp visa)

There is no such thing as a mandatory/public disability insurance.

I am not sure what you think the difference is between wage tax and income tax is. As far as I know, these are the same in Germany.


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## likith_jogi (Feb 4, 2013)

Thanks a lor for your Mrtweek and James. i checked the take home salary in this website German Wage Tax Calculator for 2010-2013, Freeware when i put 40 k ctc. my net salary will be only Net Salary:	21.731,59	 

-
Likith


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## James3214 (Jun 25, 2009)

Have you calculated that correctly Likith? Did you put in the 40k as monthly. The monthly amount would then be 3333€ so I work it at around 2037€ per month which is 24,444€ after deductions? That is probably the lowest amount you can expect but it should be a bit more with allowances, I would think.


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