19K Income Tax - What the actual fuck?

Heiko

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Dude, i don't know what to say but 19000 € income tax is just waaaay to much. Plus that is just the income tax. The VAT isn't calculated in this. My tax laywer told me that if i keep continue earning like this my taxes will get very large. I live in germany and it is a hellhole when it comes to taxes. I have not a lot of stuff that i can write off onto my tax report (only like 10% of my income) - Is there any other way of how i can save taxes? Should i just write off every single thing or buy a lamborghini huracan and write that off too? :p
 

Heiko

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Pro tip-
Start learning other languages.
Code:
        United Arab Emirates.
    Oman.
    Bahrain.
    Qatar.
    Saudi Arabia.
    Kuwait.
    Bermuda.
    Cayman Islands.

Lol yeah, Cayman Islands is a nice country to live in and they also don't have any income tax. Gotta move there!
 

nakamura

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If you earn money online there shouldn't be any reason to keep you living there. You can have a much better and higher standard of living, less costs for food etc. and pay less to none tax if you just move out of there. Also Germany is going downhill the last few years (politics, refugee crisis, temporary work etc.).
 

Heiko

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If you earn money online there shouldn't be any reason to keep you living there. You can have a much better and higher standard of living, less costs for food etc. and pay less to none tax if you just move out of there. Also Germany is going downhill the last few years (politics, refugee crisis, temporary work etc.).

I know, i could be a digital nomad. However the problem is that i have friends in germany 'nd want to start to a seo business locally. But these taxes are just killing me lol
 

nakamura

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I know, i could be a digital nomad. However the problem is that i have friends in germany 'nd want to start to a seo business locally. But these taxes are just killing me lol
Incorporate a business in Germany (best would be GmbH) and get all the income there. They only tax you for profits, but if you spend/reinvest all the money they will only tax you for the money left. The trick is to use the money for a renting a car, renting a flat, spending it for the gas of the car, holiday as business trips and so on. I think in Germany there is a 450€ limit on where they tax you. Give yourself a salary of 450€ and pay yourself bonus/dividends in the end of the year.

Huge advantage of incorporating:
Company: Earn money -> spend money -> pay taxes
Normales person: earn money -> pay taxes -> spend money
 

Zbigniew

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It also makes you feel good knowing where those tax money are going to huh :D
 

BraveBotter

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Why people keep whining about taxes? It's about 10-30% of your profit for gods sake. Pay your dues and sleep calmly.

If someone says to you you'll earn 1 million this year but you'll pay 200K for tax, would you accept it?

Don't play with this. Pay to state what you need to pay for and enjoy the rest of the money. Dunno how's in other countries but here, you pay high penalties if you're late with taxes. Really high.
 

Commoner

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How many lambos do you need after 5 years?? :p

Above mentioned are good tips.

Cheers,
C.
 

Heiko

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It's about 10-30% of your profit for gods sake

Yeah..no.

Its actually 42% of your income if you have the highest earnings + 19 % VAT + Trade Tax (which i don't know the amount).

It also makes you feel good knowing where those tax money are going to huh :D

It makes me throw up
 

moonshine7000

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Why people keep whining about taxes? It's about 10-30% of your profit for gods sake. Pay your dues and sleep calmly.

If someone says to you you'll earn 1 million this year but you'll pay 200K for tax, would you accept it?

Don't play with this. Pay to state what you need to pay for and enjoy the rest of the money. Dunno how's in other countries but here, you pay high penalties if you're late with taxes. Really high.
Government will waste the money anyway.
 

Whateverest

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The answer is short, open Estonian e-Residency and a company there. Pay yourself a "fair" salary and keep the rest of the money in the company account. Cyprus is an option too.

P.S. Your tax advisor is a moron if he doesn't have better suggestions than "if i keep continue earning like this my taxes will get very large."
 

DEFINE

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Why people keep whining about taxes? It's about 10-30% of your profit for gods sake. Pay your dues and sleep calmly.

If someone says to you you'll earn 1 million this year but you'll pay 200K for tax, would you accept it?

Don't play with this. Pay to state what you need to pay for and enjoy the rest of the money. Dunno how's in other countries but here, you pay high penalties if you're late with taxes. Really high.
Don't know where you live, but where I'm from, there is no such word as profit and taxes. They just say to you: "mmm yes, I see that you MADE $100 000 last year, we will have to tax all of it and we don't give a shit if you actually made profit with that money.". That's why people bitch about it. And also, Germany is very strict with that shit.

OP, you need to move or find an accountant that will help you out to settle a business and tell you where can you save on taxes (paying for rent or something like that that you can write off). Good luck!
 

WebMinati

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Dude, i don't know what to say but 19000 € income tax is just waaaay to much. Plus that is just the income tax. The VAT isn't calculated in this. My tax laywer told me that if i keep continue earning like this my taxes will get very large. I live in germany and it is a hellhole when it comes to taxes. I have not a lot of stuff that i can write off onto my tax report (only like 10% of my income) - Is there any other way of how i can save taxes? Should i just write off every single thing or buy a lamborghini huracan and write that off too? :p

You can write off running expenses like rent, salaries etc.

You can't buy a Lamborghini as it is an asset for your company and depreciation is 15%-25% depending upon the country and your CA.

Best is to move your business to a tax free country.

Pay yourself only what you will use. Estonia looks good :)
 

nakamura

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Why people keep whining about taxes? It's about 10-30% of your profit for gods sake. Pay your dues and sleep calmly.

If someone says to you you'll earn 1 million this year but you'll pay 200K for tax, would you accept it?

Don't play with this. Pay to state what you need to pay for and enjoy the rest of the money. Dunno how's in other countries but here, you pay high penalties if you're late with taxes. Really high.

People would love to pay taxes, if they would use them for education, health and other good things, but increasing the military budget, selling weapons into countries where is war and then "earning" refugees in the return, which will be paid with taxes etc. is not the way it should be.

OP said he has to pay 42% income taxes. This means he is working around 5 months ONLY to pay taxes. If he works 8 hours per day more than 3 hours he is only working for the state.

Imagine all the system including war/suffer/ridiculous politicians etc. are ONLY working, because people are paying taxes. A huge amount of taxes if you accumulate it. These days problem is people are actually having NO IDEA how much of their salary is actually being taxed. They think they only pay 20-42% or more, but how about VAT, taxes for the car, taxes for the dog (yes there is a dog tax in germany), taxes for cigarettes, taxes for energy, taxes for gas etc. Think about it.
 
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