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Working for US company remote from Germany as A German citizen

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Re: Working for US company remote from Germany as A German citizen

#31

Post by rurban »

matriguy wrote: post #30
rurban wrote: post #29

Earlier quoted context omitted.

you have to register yourself at the finanzamt and ensure that you qualify as free, which is doing system IT Services, certainly not application iT services. because then you have to register as Gewerbe, and then you have to pay them the russian rates, about 30% or so. for this rate they will protect you. something like that. TK is fine, I used them.

what do you mean to "pay them the russian rates, about 30% or so". And why do i need to register as Finanzamt. My plan is to call TK and have direct debot from my account every month for Health insurance, Arbeitlos insurance, care insurance and pension insurance. This all comes more that 2000 Euros per month. And on top to file tax every quarter, for this my tax consultant will help. Also my wife is working with tax…

yes, your initial taxid, classification and hence gewerbesteuer. that's the hard part.

the online tax filing via Elster can be done by yourself, yearly.

TK is trivial.

Re: Working for US company remote from Germany as A German citizen

#32

Post by matriguy »

rurban wrote: post #31
matriguy wrote: post #30

Earlier quoted context omitted.

what do you mean to "pay them the russian rates, about 30% or so". And why do i need to register as Finanzamt. My plan is to call TK and have direct debot from my account every month for Health insurance, Arbeitlos insurance, care insurance and pension insurance. This all comes more that 2000 Euros per month. And on top to file tax every quarter, for this my tax consultant will help. Also my wife is working with tax…

yes, your initial taxid, classification and hence gewerbesteuer. that's the hard part. the online tax filing via Elster can be done by yourself, yearly. TK is trivial.

My tax consultant said, as you are going it get a fixed income from US company, this will not be a "Freelancer" job. Hence no need to do any special registration with Finanzamt. All this is new for my tax consultant as well, may be he is wrong. Do you have any reference for tax consultant. happy to take help. or any content which explains the process, happy to read/watch?

Re: Working for US company remote from Germany as A German citizen

#33

Post by cultofmetatron »

littlecranky67 wrote: post #19
rad_gruchalski wrote: post #12

Earlier quoted context omitted.

No, they have to pay their own health insurance in Germany and deal with taxes themselves as a self-employed person. Additionally, most likely they have to foot in for pension and a couple of insurances to be on the safe side. Germany is €€€. I’d also recommend getting a Steuerberater. They’ll need it. Mistakes are expensive. And don’t spend any money in the first year. Second year taxation will be 3x the nominal rat…

As a german freelancer for >8years, I can confirm and highly recommend you stick to exactly this advice. You will also have to check with the tax authority (Finanzamt) whether you can become a "Freiberufler" (all income taxed as personal income) or whether you need to register a business ("Gewerbetreibender"). Whether or not the Finanzamt accepts your status as a Freiberufler depends on different jurisdictions, there…

damn that sounds about as bad as the american system..

Re: Working for US company remote from Germany as A German citizen

#34

Post by matriguy »

littlecranky67 wrote: post #18
layer8 wrote: post #11

Yes and no. If the US company is not registered as an employer in Germany (basically, has a subsidiary in Germany), then you’re not an employee under the German law, which means that you have to work as a freelancer (self-employed, pay health insurance yourself, and so on), and the US company must thus be willing for you to work as a contractor instead of as an employee. At least that’s my understanding.

Yes, and given that you will work as a freelancer for just a single company long-term, you will have to pay into mandatory social insurances as you are "arbeitnehmerähnlich Beschäftigt" (Arbeitslosenversicherung, Rentenversicherung, Krankenversicherung). Also note that you will have to pay both parts of the social insurance contributions (employer- and eyployee part). Assuming you are above the "Beitragsbemessungsgre…

Hi littlecranky67, I will be paying Arbeitslosenversicherung, Rentenversicherung, Krankenversicherung both employee and employer part. Do i need to do any formality with Finanzamt? Currently i am already working with regular Germany company as an employee.

Re: Working for US company remote from Germany as A German citizen

#36

Post by Dracophoenix »

orangepurple wrote: post #26
Dracophoenix wrote: post #14

Earlier quoted context omitted.

You're forgetting FATCA, which is a hassle for anyone who needs a bank account in a foreign country to get paid.

FATCA is a crime against humanity and a blatant violation of sovereignty. Thanks Obama?

I don't know if your statement is sincere or sarcastic. But assuming you're sincere, in addition to being a violation of national sovereignty, FATCA is most certainly a violation of the 4th and 5th amendments.
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