Taxation on an individual's income in Germany is progressive, in other words, the higher the income, the higher the rate of tax to be paid. German tax rates for individuals are between 14% and 45%.
Yearly taxable income
0 - 8,820 €
8,821 - 54,057 €
54,058 - 256,303 €
256,304 € and above
All employees and self-employed individuals have to pay income taxes. An individual who becomes "permanent resident" will have taxes calculated on his income from Germany and overseas. A foreign resident who is employed in Germany pays taxes only on income earned in Germany.
Employers are obligated to deduct the tax payable, income tax and social security on a monthly basis from income earned as part of a wage. You must also pay church tax if you are affiliated to a religious community that charges it. Tax returns are due by the end of May of the following year and the average refund amount is 2125 EUR!
You are most likely eligible for tax refunds in case:
You worked in Germany for less than one calendar year - for example you worked as seasonal worker or you had a break between two jobs or you started to work in March, left job in November
You worked for more than one employer during one year
You were working for two or more employers at the same time
You were commuting
Which taxes can be refunded?
We can help you to get your Income Taxes refunded, as well as child benefit support for your kids in case they are younger than 18 (or 26 in case they are university students). Find out more here!
Is it possible to refund Sozial- und Rentenversicherung tax (social and pension contributions)?
It is not possible to obtain a refund for these taxes for EU citizens under the age of 65. It is possible if you are at least 65 years old or any non-EU citizen. Find out more here!
We also provide tax refund to those who work in Germany as self-employed (Selbstständige Arbeit)
If you regularly pay an advance on taxes or have annual income (not turnover) of more than € 17,500, we can help you with filling tax returns. We will only need every invoice you issued or accepted.
What is Lohnsteuerbescheinigung?
Lohnsteuerbescheinigung (or LBS) is a summary of earnings and deducted taxes by an employer during a calendar year. If the employer transmits the data to the tax office electronically, it is not necessary to enclose an LBS to a tax return application. Lohnsteuerbescheinigung is issued by the employer in the end of the employment or in the end of the calendar year. All employers are legally obliged to issue the form by the end of February of the following year (for example by the end of February 2017 for fiscal year 2016)
What should I do if I don’t have Lohnsteuerbescheinigung?
You have to contact the employer as employers are legally obliged to issue you a replacement
Dendax can obtain the documents from your employer
How many years back can I claim tax refund?
You can claim your tax refund in Germany 4 years back from the moment of application.
How long does it take until I get my refund?
It may take up to 4-6 months until you get the income tax refund. The final decision is up to the German Tax Office.
How much is the service fee?
The price is 13% from the refunded amount. There is a minimum fee of 50 EUR.
Price does not include VAT or bank charges!