You could be subject to income tax depending on your individual case; however, generally employees are subject to progressive income tax in Germany (the tax rate increases with taxable income). Therefore, you need an income tax number (Lohnsteuernummer), which you should get from the city authorities (Bürgeramt or Einwohnermeldeamt) or directly from the tax authorities (Finanzamt). As soon as you have it, please inform the CISPA Human Resources Department. The so-called double taxation agreements that Germany has signed with several countries help you to not pay taxes in two countries at the same time.
CISPA also helps you by automatically deducting your tax directly from your wages and pays it to the tax authorities. The exact amount you pay depends on earnings, marital status, children, and other factors. It’s important to be in the correct income tax class (Lohnsteuerklasse); the CISPA Human Resources Department will assist you with this.
Bonus: How does progressive taxing look like in Germany?
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You can take a look at the official website prepared by the Federal Government of Germany for a brief explanation, by clicking here.
- Class I: Single, widowed, civil partner, or divorced (married persons not in II–IV)
- Class II: Single but entitled to single-parent allowance
- Class III: Married with non-earning spouse or spouse in Class V, or recently deceased
- Class IV: Married (not separated); both spouses earning and residing in Germany
- Class V: Married but one spouse is in Class III
- Class VI: Individuals with more than one employer