(2023)
Are the income-related expenses in Form N-AUS the same as in Form N?
If wages are tax-free in Germany due to a double taxation agreement or the Foreign Employment Decree, expenses related to the tax-free foreign income cannot be deducted as business expenses when calculating income taxable in Germany (due to Section 3c EStG). Therefore, they must not be entered in "Form N".
However, since the tax-free wages are subject to the progression clause, you may deduct your expenses "as if they were business expenses" from the relevant foreign income. This reduces the amount of foreign income included in the progression clause, which increases the taxable income. Enter these expenses in "Form N-AUS".
