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Where Taxpayers and Advisers Meet

Late declaration of income tax

wolczr
Posts:1
Joined:Tue Apr 25, 2017 7:22 pm
Late declaration of income tax

Postby wolczr » Tue Apr 25, 2017 7:34 pm

HI there.

I have a property in Berlin which I started renting out in about 2014. The annual after expenses income is about 4000euros (meaning I have probably had an income of about 16000 euros or less after some renovation costs). Rather foolishly, I listened to somebody who told me that I only need to declare my income on my UK tax return, which I did and paid tax accordingly. However, I therefore never registered my income in Germany. I have now discovered that I should have provided tax returns in Germany. This means I need to produce at least 4 years of tax returns in Germany.

Two questions:
1) roughly how much tax am I likely to pay
2) roughly how much are they going to fine me

Naturally, I am now trying to rectify this. Is there a best way of doing this? I understand Germany has a system of tax advisers - is it best going through them? Will they be in any way gentle as this was an error made from stupidity rather than attempt to avoid paying tax?

Any help would be gratefully received, and no need to comment on my foolishness, which I am all too aware of.

Thanks in anticipation

etf
Posts:1278
Joined:Mon Nov 02, 2009 5:25 pm

Re: Late declaration of income tax

Postby etf » Tue May 16, 2017 8:39 am

You can access a copy of a PWC tax guide for expatriates working in Germany through the "useful links" section of the website below. Whilst it does not fit your own situation, it will provide you with some background information regarding the tax system there.

A voluntary disclosure of the income is likely to be a better bet than burying your head in the sand and I suggest you seek tax advice locally in Germany. If German tax is payable you will need to consider how any double taxation can be alleviated e.g. claim a credit for the German tax against your UK tax.

KR

etf

www.theexpatriatetaxfactory.com


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