Since 2022, the number of Ukrainians living in Germany has increased significantly, and now the Ukrainian community in this country is one of the largest in Europe. Currently, more than 1 million Ukrainians live in Germany. Many Ukrainians are actively looking for work and integrating into the local economy. In this regard, it is important to understand the peculiarities of the German tax system and know how to make the most of its benefits.
Every year, Germans summarize their income and taxes paid by filling out a tax return. This allows them to receive a tax refund. According to the Statistisches Bundesamt, 9 out of 10 people who file a tax return receive a tax refund, and the average amount of such a refund is 1095 euros. This is a real opportunity to get some of your money back.
The German tax office notes that all Ukrainians working in Germany have the same right to a tax refund as Germans. However, tax declaration is a completely new topic for Ukrainians, which is frightening and causes anxiety.
Tax filing can seem like a complicated and confusing topic, especially for Ukrainians who have just started working abroad. RT TAX Business Development Director, Giedrius Lužynas, explained:
“If you work legally, your employer provides a pay slip with each paycheck, which shows the taxes withheld. In most cases, employers who withhold taxes from Ukrainians deduct taxes from the first euro earned. However, each employee is entitled to a tax-free deduction that can be applied, which makes a tax refund possible. In some cases, this refund can be 2 euros or more, and it is paid after submitting a tax return to the German tax authorities.
You can simply send us your payslip and we will check if you are entitled to a tax refund - it is free of charge, as our consultation is completely free.
According to Giedrius Lužynas, Ukrainians are no exception to the general rule: approximately 90% of Ukrainians who file a tax return will receive a refund. In addition, filing a declaration opens access to various social benefits in Germany.
One of these benefits is state child benefit, which Ukrainians working in Germany can receive. To do this, you need to fill out an annual tax return. The amount of benefit can be up to 250 euros for each eligible child (up to 25 years of age, if the child does not work).
Ukrainians can file their tax returns on their own, but this requires not only access to the necessary documents, but also a good understanding of the German tax system. However, using a specialized tax return consultant offers several advantages over filing on their own. These advantages include overcoming the language barrier, expertise in navigating the complex tax system, and the importance of filing correctly to avoid errors.
You can get detailed information about the tax refund process and additional information about tax returns and assistance intended for Ukrainians in Germany by registering at website companies.
Thank you for being with us! Monobank for the support of the ElitExpert editorial office.
