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You could be subject to income tax depending on your individual case, however generally the 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 helps you to not pay taxes in two countries at the same time.

ⓘ For more information on paying tax and double taxation agreements, go to the Finance Ministry’s website. The information here on this page is only for providing general information regarding the income tax in Germany, and for each case the circumstances could be different. If/when you decide to work with us, our departments will assist you and inform you!


CISPA also helps you by automatically deducting your tax directly from your wages and pays it to the tax authorities. The exact amount of tax you have to pay depends on how much you earn, whether you are married, have children or other factors. It is important that you are put into the correct income tax class (Lohnsteuerklasse); the CISPA Human Resources Department will assist you on that regard (or will direct you to the official help you need, if that is the case).

Bonus: How does progressive taxing look like in Germany? You can take a look at the official website prepared by the Federal Government of Germany for a brief explanation, by clicking here.


Disclaimer
This is not a guide or financial advice, just a quick overview on what type of tax classes are there in Germany.

  • Class I: Single/widowed/civil partnership/divorced. Married persons not in tax classes II, III
  • or IV
  • Class II: Single but entitled to single parent allowance
  • Class III: Married but spouse does not earn wages/is classified under tax category V/recently deceased
  • Class IV: Married (not separated); both earning and residing in Germany
  • Class V: Married but one spouse is classified under tax class III
  • Class VI: Individuals on multiple wages from more than one employer



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