What can I do if I believe I am a victim of double taxation?
April 1, 2023 | 115,00 EUR | answered by Guido Hoffmann
Dear tax advisor,
I am reaching out to you because I believe I am a victim of double taxation. My situation is as follows: I live and work in Germany, but I have income from a foreign source. I have now realized that both Germany and the other country are taxing my income, leading to double taxation.
I am concerned that I may have to pay more taxes than is actually justified. Therefore, I am wondering what I can do in this situation. Are there ways to avoid or at least reduce double taxation? What steps should I take to resolve my tax issue?
I have already tried to inform myself about the double taxation agreement between Germany and the other country, but I am unsure how to apply it to my specific situation. I would greatly appreciate your support and expertise in finding a solution to my problem.
Thank you in advance.
Sincerely,
Ella Kronberger
Dear Ms. Kronberger,
Thank you for your inquiry regarding the double taxation of your income from a foreign source. It is understandable that you are concerned about having to pay more taxes than is justified. In such cases, it is important to consider the relevant provisions of the double taxation agreement between Germany and the other country.
The Double Taxation Agreement (DTA) is an international treaty between two states that aims to ensure that income is not taxed twice. Typically, the agreement includes provisions that determine which country has the right to tax certain types of income. It may also include provisions to avoid double taxation, such as the crediting or exemption of taxes.
To clarify your specific situation and avoid or reduce double taxation, it is advisable to consult a tax advisor. An experienced tax advisor, such as myself, can help you analyze the double taxation agreement, apply the relevant provisions to your income, and identify the optimal tax planning opportunities for you.
It is important that you have all relevant documents and information regarding your income from the foreign source ready for the tax advisor to provide informed advice. Together, we can develop measures to avoid or reduce double taxation, such as applying for an exemption from withholding tax abroad or crediting taxes already paid.
I am at your disposal to solve your tax issue and help you optimize your tax situation. Please do not hesitate to contact me to schedule a consultation for our online office hours.
Thank you for your trust and inquiry.
Best regards,
Guido Hoffmann
