Field help:
Was there any foreign income that should be taxed at a lower rate in Germany (pursuant to sect. 11 of the Foreign Tax Law (AStG))?
Select "yes" if you want your foreign income to be taxed only partially in Germany in accordance with sect. 11 of the Foreign Taxation Act (AStG) in order to avoid double taxation.
What is this about?
If you have earned passive income such as interest, dividends, licence fees, rental income or investment income abroad and paid tax on it at a lower rate than in Germany, the tax office can check whether this income is taxed in Germany. Double taxation can be partially avoided with the help of the reduction amount in accordance with sect. 11 of the Foreign Taxation Act (AStG).
What does the reduction amount according to sect. 11 of the Foreign Taxation Act (AStG) mean?
The reduction amount reduces the taxable portion of your foreign income in Germany, as this has already been taxed abroad. As a result, only the difference is taxed at the German tax rate.
When should you provide information here?
- If you have earned income abroad that is categorised as "passive income" in Germany and was taxed at a low rate.
- If this income is to be taxed in Germany but tax has already been paid on it abroad.
Where do I get the information from?
The required information on the amount and type of your foreign income can be found in the statements or tax documents of the country in which the income was earned.
If necessary, please contact a tax advisor in your area for advice.
