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| Taxes |
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Paying Taxes from a Stipend/Fellowship | If you are receiving a stipend or a fellowship, then you may be freed from paying taxes in Germany. It may, however, be the case that you must pay taxes on your stipend or fellowship in your home country. Please ask your stipend-giving institution for more information.
If you are receiving a stipend or a fellowship from an institution in your home country (e.g. a government fellowship), you are not required to pay taxes in Germany.
Paying Taxes as an Employee | If you are employed in Germany and are staying for longer than six months, then your income is taxed. At the end of each calendar year, you can apply for a tax return (Lohnsteuerausgleich). Under certain conditions you will receive a return.
If you are staying in Germany for less than six months, then your wages in Germany will be taxed in your home country, provided that you are working for a foreign employer and your home country requires this taxation. Please refer to the  Federal Ministry of Finances’ information regarding tax treaties preventing double taxation (Abkommen zur Vermeidung der Doppelbesteuerung).
Who is Subject to Taxation? | The wage tax is a form of income tax. It is withheld from an employee’s wages by his/her employer and transferred to the respective local revenue office (Finanzamt). As an employee, you must provide your employer with your wage tax card so that your employer can determine the amount of wages to be withheld in your individual case. The legal basis for this is provided for in the German Income Tax Law (Einkommensteuergesetz).
You are required to file a tax return when
- the local revenue office has provided you with a deduction (Freibetrag)
- you are employed by more than one employer at the same time
- both you and your spouse are employed and either you or your spouse is taxed under the tax class (Steuerklasse) V or VI
As an employee, you can voluntarily file a tax return when
- you have not been employed by one employer throughout the whole calendar year
- your wage level has changed during the calendar year and your employer has not adjusted your wage tax accordingly
- your tax class has changed to your benefit
- you have had special expenses (Sonderausgaben) or extraordinary burdens (außergewöhnliche Belastungen) during the calendar year which would allow you to receive a return from your wage tax
Church Tax | In Germany, the church tax (Kirchensteuer) exists for all who belong to a church that is part of the church tax system. Members of such a church must pay church tax towards the regional church of their confession. The church tax is determined according to the level of income tax (wage tax). It is levied by the state and is based on the respective church tax laws. Membership in church is noted on your wage tax card.
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