Germany Income Tax

[takeitout]

Hello everyone,

I wanted to ask a few questions on about Germany's tax laws.

I am a person who was made a couple of hundred dollars with online businesses. I currently live in Iraq but I want to go to Germany to study masters then work there. However even if I'm studying I don't want to give up doing online business work I actually want to scale it more when I'm a student. But recently I've read that I need to pay taxes in order to keep doing what I'm doing since it will count as 'income tax' now I don't mind paying taxing but 42%... really? It's super unreasonable.

I'm aware that many immigrants there don't disclose everything to the government and from what I'm told if they don't know about it you're fine. However if they get suspicious and find out then you would have to pay a big fine and jail time.

So my questions are as follows

1. Can the government check you bank balance and transactions?
2. Can the government check your PayPal account and transactions?
3. Do most people comply with the income tax law in Germany?
4. What can you do to hide the trace of online income in Germany?
5. Hypothetically if you are a YouTuber or a TikToker or run any type of business that you need to show your face in would the government ask you for the income you made because of your presence online?
6. Can showing them you made less money that you actually made a good strategy?
7. What if you turn your money into bitcoin instead of withdrawing through a bank?

 

[MisterF]

Why not just keep your money paid into wherever it gets paid now?

As a student you are not a resident in Germany unless you are planning to apply to become a resident, you are merely reading there on a student visa.

 

[addyblub]

1. it is possible but not done by an local tax offices (otherwise you are a real huge fish in the tank)
2. no
3. - 7. if you yearly income is below 10000 EUR then you won't have to pay taxes, but yearly you have to make your own tax commitment in which it will be calculated..

 

[takeitout]

Why not just keep your money paid into wherever it gets paid now?

As a student you are not a resident in Germany unless you are planning to apply to become a resident, you are merely reading there on a student visa.

I would like to stay after the masters and find a job there

 

[Blue Panda]

Let me answer you quickly:

1. Yes they do and they require statements if you get any type of benefits
2. Yes they do depends on sum
3. Yes we pay tax as its holy

Tax are for income above 10k and slowly go up in %. Its not straight 42%.

4. Why come to germany if you wont pay? Getting benefits? Hope you will be kicked soon after study.

5. They dont ask, but your bank will send statement to tax agency if the sum is high enough. Also google germany send statements to tax agency because payouts are costs of biz.

6. If you want to risk a few years in jail, you can try. But they will keep you in jail and right after kick you out of germany! You can get up to 10 years of jail depending on the amount. As a criminal you wont be able to stay in germany...

7. Depends. You can do that with a offline wallwt, but if you use any service that requires kyc, you will be fucked.

 

[takeitout]

Let me answer you quickly:

1. Yes they do and they require statements if you get any type of benefits
2. Yes they do depends on sum
3. Yes we pay tax as its holy

Tax are for income above 10k and slowly go up in %. Its not straight 42%.

4. Why come to germany if you wont pay? Getting benefits? Hope you will be kicked soon after study.

5. They dont ask, but your bank will send statement to tax agency if the sum is high enough. Also google germany send statements to tax agency because payouts are costs of biz.

6. If you want to risk a few years in jail, you can try. But they will keep you in jail and right after kick you out of germany! You can get up to 10 years of jail depending on the amount. As a criminal you wont be able to stay in germany...

7. Depends. You can do that with a offline wallwt, but if you use any service that requires kyc, you will be fucked.

Hey Panda, thanks for the reply!
I'm just wondering since you feel so strongly about this subject what do you think of this?
https://www.epsu.org/article/german-companies-are-among-world-s-leading-tax-avoiders

 

[Blue Panda]

Hey Panda, thanks for the reply!
I'm just wondering since you feel so strongly about this subject what do you think of this?
https://www.epsu.org/article/german-companies-are-among-world-s-leading-tax-avoiders

In my opinion its a proof of people who dont understand the difference between revenue and profits...

Fresenius bought a high percentage of german clinics under the trademark helios, which are ofc pre tax losses. If a company invest, they dont have to pay income tax on it! Thats totally legal. Comparing with other countrys is useless as they have much lower salarys. A company with 100k Employees is not same as one person and the difference if you pay - lets say 700€ - for a worker abroad or 2500€ for a german employee, sums up.

Also they arent immigrants. Thats a huge difference. Morality wise its not nice to go to a better country and already think about abusing their system. Thats atleast my opinion.

We pay high taxes because we have a great social system. In our country people without a job get social benefits to survive.

If you hide your income and take those, others have to work more and taxes will increase. We pay for the ukraines already, but thats other circumatances....

If you dont want to pay such high tax, go to a different country. Bulgaria has 10% flat tax for example. Been there, seen that...

 

[Jave]

Don't worry this is % only applies to people with really high income - I assume you won't make that much so your tax rate will be more reasonable.

 

[takeitout]

In my opinion its a proof of people who dont understand the difference between revenue and profits...

Fresenius bought a high percentage of german clinics under the trademark helios, which are ofc pre tax losses. If a company invest, they dont have to pay income tax on it! Thats totally legal. Comparing with other countrys is useless as they have much lower salarys. A company with 100k Employees is not same as one person and the difference if you pay - lets say 700€ - for a worker abroad or 2500€ for a german employee, sums up.

Also they arent immigrants. Thats a huge difference. Morality wise its not nice to go to a better country and already think about abusing their system. Thats atleast my opinion.

We pay high taxes because we have a great social system. In our country people without a job get social benefits to survive.

If you hide your income and take those, others have to work more and taxes will increase. We pay for the ukraines already, but thats other circumatances....

If you dont want to pay such high tax, go to a different country. Bulgaria has 10% flat tax for example. Been there, seen that...

I understand where you are coming from.
However I don't seek sitting on benefits without doing anything actually I would probably go insane. I've never had the taste of a socialist system so perhaps I will change my mind later on. Tax me on my 9-5 income but if I'm getting some breadcrumbs here and there I don't think you should take that from me. Especially since I will have to pay rent as well.

 

[Blue Panda]

I understand where you are coming from.
However I don't seek sitting on benefits without doing anything actually I would probably go insane. I've never had the taste of a socialist system so perhaps I will change my mind later on. Tax me on my 9-5 income but if I'm getting some breadcrumbs here and there I don't think you should take that from me. Especially since I will have to pay rent as well.

If you do 9-5 you can easily cashout with either Amazon giftcards (U will need them anyways) or crypto. Aslong as its a low amount, no one will care.

But if its above 1k per Month its not breadcrumbs.

 

[LeMan119]

1. it is possible but not done by an local tax offices (otherwise you are a real huge fish in the tank)
2. no
3. - 7. if you yearly income is below 10000 EUR then you won't have to pay taxes, but yearly you have to make your own tax commitment in which it will be calculated..

i not live in Germany anymore but i have income 1000-1500eur yearly on my German bank account, Do i need to declare something for that monay and where? i don`t want to have a problem when come again there