Can double taxation also be relevant for individuals?
July 20, 2022 | 120,00 EUR | answered by Guido Hoffmann
Dear tax advisor,
My name is Friedhelm Seebauer and I am currently in a very complex tax situation. I recently learned about a concept called double taxation. Initially, I thought this only applied to businesses, but now I am wondering if it could also be relevant for individuals like myself.
My current situation is as follows: I have income from various sources, such as my employment, capital gains, and occasional freelance work. I have noticed several times that I have to pay taxes on the same income in both Germany and another country. This results in me having less money available at the end of the day than I would actually earn.
My concern is therefore that I may not be fully utilizing all tax options and as a result, paying more taxes than necessary. So I am wondering if double taxation could also be relevant for individuals like myself and if there are possible solutions to avoid it. Are there specific regulations or agreements between countries that could help me avoid double taxation? How can I ensure that I do not pay more taxes than I need to?
I would be very grateful if you could assist me with this and provide me with possible options to optimize my tax situation.
Best regards,
Friedhelm Seebauer
Dear Mr. Seebauer,
Thank you for your inquiry regarding double taxation. It is indeed true that double taxation can be relevant not only for companies, but also for individuals. Double taxation occurs when the same income is taxed in both the country where it was earned and in another country. This can result in you having to pay more taxes than would be justified.
In your case, with income from various sources and possibly in different countries, it is important to check if there are any specific regulations or agreements between the countries to avoid double taxation. One tool that could be used here is called Double Taxation Agreements (DTA). These agreements determine which country has the right to tax certain income and thus prevent double taxation.
Therefore, it is advisable to consult with an experienced tax advisor to analyze your individual situation and see if and how you can benefit from such agreements. A tax advisor can also help you find tax-optimized solutions and ensure that you only pay the taxes that are actually due.
It is important to address the issue of double taxation early on in order to minimize potential tax burdens and optimize your tax situation. I am happy to assist you in my online consultation hours to answer any further questions and help you optimize your tax situation.
Best regards,
Guido Hoffmann
