A tax declaration is a form that an individual must fill in to declare their income and taxes paid. The aim is to ensure that an individual pays the correct amount of taxes based on their gross income. The declaration also includes information about the employee’s tax-saving investments in instruments like insurance, Provident Fund (PF), annuity plans and EEE amount paid to them.
Tax declarations are required for everyone who earns income. This includes employees, self-employed persons, freelancers, professionals, contractors, and others. There are several ways to file a tax declaration, including online, by post, or in person. Some people choose to hire a professional tax consultant for help filing their declarations. However, this can be expensive and time consuming. Some people use free tools or software to calculate their taxes and prepare their declarations. This can be more affordable and easier than hiring a professional.
In most cases, submitting a tax declaration isn’t mandatory. However, if you have extra income sources, like freelance work, or receive “wage replacement benefits” (Lohnersatzleistungen) in addition to your salary, it’s worth the effort to submit a declaration. In some cases, this may even lead to a tax refund.
Generally speaking, employees must submit their tax declarations by the end of June each year. If they don’t, their employer will withhold a percentage of their wages throughout the year. This will result in a lower paycheck and may cause financial problems later on.
Employees must also make sure that the investment amounts declared in their declaration match the actual amount invested by the end of the year. This will prevent an employer from deducting too much tax at the beginning of the year. If the amounts do not match, the employee will have to declare additional investments in their return, and the employer may owe them money.
It’s important to note that the taxation rules in Germany are complex, and it’s not uncommon for employers to overpay an employee’s taxes by mistake. This can happen if they don’t understand how the German tax system works, or if they aren’t paying attention to changes in the law. If you’re not familiar with the German tax laws, it’s a good idea to seek out professional assistance from a qualified tax expert.
Members of the CERN personnel who are taxed in a country other than France must mention this fact at the end of their online or paper declaration by adding a note stating: “Membre du personnel du CERN assujetti à l’impot externe du CERN et, a ce titre, exonere d’impot sur les prestations financières et familiales versées par le CERN.” This statement must be added on page 2 of the online or paper declaration. Steuererklärung