Working and Researching in Heidelberg Taxes

Overview

With a Fellowship

Generally fellowships are tax exempt as long as certain conditions are fulfilled.

The fellowship must be paid out of public funds or by a public or non-profit organization (as far as this is recognized by German law).
The fellowship must be granted with the goal of supporting research, academic or artistic education or further training.
The fellowship does not exceed the amount necessary to complete the research project or to pay for the education program and daily living expenses. The fellowship is granted according to the guidelines of the granting agency.
The fellowship does not require any services to be made in return or any form of employment on the part of the recipient.

Tax exempt status also means no social insurance contributions are paid.

With an Employment Contract

If you are working at the University with an employment contract with the University of Heidelberg, your income will be taxed.

Income Tax
Income taxes are deducted directly by the employer and paid to the state. The amount of income tax deducted depends on income, marital or family status and tax bracket.

Tax Card or Certificate for Tax Deduction

Since January 2013 we have in Germany electronic tax cards and all you'll have to do is to communicate your tax identification number to your employer. You receive this tax identification number, which has lifelong validity, by mail automatically after registering your place of residence at the residency registration office (Bürgeramt). If you live outside of Heidelberg, a different tax office may be responsible for you (To search for the appropriate tax office see related information). You must inform the tax office directly about any changes to your tax card.

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Taxes

Tax Return Tipps

By submitting an income tax return, it may be possible to receive a partial reimbursement of the income taxes that were deducted from your salary throughout the year. In many cases, it is a good idea to seek assistance when preparing a tax return.

Taxes

Double Taxation Agreement

In order to prevent foreigners from paying taxes both in Germany and in their home country, Germany has entered into a so-called Double Taxation Agreements with many countries. The agreement establishes the country in which the taxes must be paid.

Church Taxes

The state also deducts church taxes along with income taxes (approx. 9% of income tax) for the large Christian churches. For that reason you have to indicate your religious affiliation when registering your place of residence at the residency registration office (Bürgeramt). The taxes will be deducted directly from your income.

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