# How to calculate wages tax?



## linwahling (Mar 16, 2015)

*How to calculate wages tax? Ask from EU-citizen (other countries)*

Hi everyone,

Hope someone can give me accurate answer.

I'm Hong Kong Resident (Single), I'm holding BNO passport that are equal to British passport holders (EU-Member-State). That means I have the freedom of movement to all european countries and I can use this for identification to stay / living in Germany. I will be treated as an *EU-citizen*.

One German company willing to hire me and pay me per month. *I think I will go to solo.*

I still confuse the wages tax calculation. 
*Have any good wages tax Calculator and more clear explanation on web?*

*What is the different (wages tax calculation) between freelancer and employee under German company?*

Cheers,
Ling


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## dorzzs (Jan 19, 2015)

British National (Overseas) status does not grant holders right of abode in anywhere, including the United Kingdom and Hong Kong.

Also your poor English skill shows that you don't have a high qualification. Germany doesn't want unskilled worker....If you don't speak German and your salary is low, the chance of working there is extremely low.


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## James3214 (Jun 25, 2009)

dorzzs said:


> British National (Overseas) status does not grant holders right of abode in anywhere, including the United Kingdom and Hong Kong.
> 
> Also your poor English skill shows that you don't have a high qualification. Germany doesn't want unskilled worker....If you don't speak German and your salary is low, the chance of working there is extremely low.


Dorzzs,
Also, insulting fellow forum members shows ignorance.
I know of quite a few highly qualified people who have terrible 'English skills', including a few native speakers. 
If you want to contribute to the forum, please do it in a polite and constructive way, but please read the rules again before doing so.


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## dorzzs (Jan 19, 2015)

Hi. Sorry for being too direct. I did not intend to insult him. I was just trying to say if you are not highly qualified it will be very difficult to work in Germany.

And many Hong Kong people have the misunderstanding that BNO can give them right to live and work in EU...

Also, I assume that in Hong Kong if you are highly qualified you usually will have pretty good english (because of the education there, and from my experience)

My uncle is french and he doesnt speak good english. But he is a doctor.

Apologise for any wrong assumption and the wording that I used that made you feel umcomfortable.


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## James3214 (Jun 25, 2009)

ok dorrzzs, but I just don't think it was me that was 'uncomfortable' with it.

Anyway, getting back to the original post..

We have had a few threads about calculating tax such as this:

http://www.expatforum.com/expats/ge...ny/670426-net-salary-calculation-germany.html

There are websites that help you calculate your bruto income such as this one
Brutto Netto Rechner 2015 2014 Gehaltsrechner 2015 2014 Lohnrechner 2015 2014 Gehalt
You have to pay the same tax on what you earn as a freelancer or employee, but although you will probably earn more as a freelancer you will be taxed more and also miss out on the benefits employees get. Health insurance/pension contribution, paid holiday, etc.

As an EU passport holder, you can get a job easily enough, unskilled or skilled at the moment but the salary you will get is another thing!


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## Bevdeforges (Nov 16, 2007)

James3214 said:


> As an EU passport holder, you can get a job easily enough, unskilled or skilled at the moment but the salary you will get is another thing!


But I don't believe BNO's are treated as EU nationals. Even for the UK, they are only entitled to a six month stay. 

From the gov.uk website:



> *Rights as a British overseas citizen*
> 
> You:
> 
> ...


This is not said to be nasty. But we had someone over in another section of the forum who could not travel within the EU due to having only a BNO passport.

Cheers,
Bev


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## afamilyinasia (Apr 10, 2015)

1. If a company is willing to hire you, and you are not an EU Passportholder they still have the chance to prove that they find nobody elso for that job.
2. As an employee you have to pay social insurance, unepmloyment insurance, health insurance. But if you are a freelancer and want to have a healthinsurance this could be much more expensive because you will have a private contract.


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## beppi (Jun 10, 2013)

Tax matters are very complicated in Germany and without native German language skills it's basically impossible to figure out. The abovementioned calculator can give you a rough guideline, but please consult a tax consultant for a more definitive view.
Freelancers and employees pay the same income tax rates, but social security costs a lot more for freelancers: health insurance (which is compulsory) and retirement insurance (which is compulsory for employees, but not for freelancers) roughly doubles, since the employer pays half for employees. Unemployment benefits (and thus the insurance for it, which is compulsory for employees) are not available for freelancers. (Health insurance for freelancers costs €300-700/month, depending on income.)


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## HKG3 (Jan 11, 2015)

dorzzs said:


> British National (Overseas) status does not grant holders right of abode in anywhere, including the United Kingdom and Hong Kong.


This is not true! When you apply for a British National (Overseas) passport, you are required to submit a copy of your HK ID card which shows that the holder has the right of abode in Hong Kong. The HK ID number (your HK ID number remains the same for the rest of your life) with the statement saying the holder has the right of abode in Hong Kong will be stamped into the BNO passport by HMPO official. You can see link below - 

British National (Overseas) passport - Wikipedia, the free encyclopedia


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## dorzzs (Jan 19, 2015)

Yes so in the first place you have to have a hkid.. Bno alone will not give u the right...


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