What happens if I have already paid taxes in one country and then get taxed in another country as well?
April 1, 2023 | 120,00 EUR | answered by Guido Hoffmann
Dear tax advisor,
My name is Christian Sauer and I have a question regarding double taxation. Recently, I earned income in Germany and paid my taxes accordingly. Now, I have taken on a new job in Austria and will also have to pay taxes there.
My concern is that I will have to pay taxes in both countries and be double taxed. I am wondering if it is possible to avoid this double taxation and how I should proceed. Are there any specific agreements between Germany and Austria that could help me? Should I contact the respective tax authorities or are there other institutions that can assist me?
I want to make sure that I do not pay more taxes than necessary and would like to know if there are ways to avoid or at least reduce double taxation. I hope you can help me with this and would greatly appreciate your support.
Thank you in advance for your assistance.
Kind regards,
Christian Sauer
Dear Mr. Sauer,
Thank you for your question regarding double taxation. It is understandable that you are concerned about having to pay taxes in both countries and being double taxed. There are indeed ways to avoid or at least reduce double taxation.
First and foremost, it is important to know that Germany and Austria have a Double Taxation Agreement (DTA). This agreement determines which country has the right to tax certain income and how double taxation is avoided. In your case, if you earn income in both Germany and Austria, usually the country where you are a resident will have the right to tax. This means that you will pay taxes on your worldwide income in Germany as your country of residence, and only on the income earned in Austria.
To benefit from the provisions of the DTA and avoid double taxation, I recommend contacting the competent tax office in Germany. There, you can apply for a certificate of residence which will help you avoid paying taxes in Austria on income earned in Germany. You should also inform the Austrian tax office about your situation and, if necessary, apply for a certificate there as well.
It is advisable to address this matter early on to avoid any potential issues. If you have any further questions or need assistance, I am happy to help.
I hope this information is helpful to you and wish you success in your new job in Austria.
Best regards,
Guido Hoffmann
