Germany - Query related to Tax, Pension and Insurance

0POSTS

11 years ago

Hello,

I have recently moved to Germany and got a new job (permanent contract) in Germany. I am now asked by my employer to submit below details:

a) Pensions insurance number
b) Health insurance
c) Long term insurance contribution
d) Income tax bracket
e) Tax ID no.
f) Monthly tax allowance
g) Annual tax allowance
h) Confession

As mentioned above, i have recently moved to Germany and since, this will be my first job in germany, I was never involved in paying any amount for health and pension insurance before.

My questions:
1) For income tax bracket, i am married, where i will be working for a german firm and my spouse is on payroll of indian company and is getting per diem allowance monthly in germany. which tax bracket will be applicable for me - tax bracket 3 / 4?
2) How to calculate monthly and annual tax allowance?
3) i have done some research before posting here and i found that any employee, if he is paying taxes, will automatically be eligible and will get social security number, pension and health. Is this true?
4) Which pension scheme would you recommend (this is related to pensions insurance number)
5) How to get TAX ID no? I have not paid any taxes before in germany.

Not sure, why some of the above details were asked by my employer, but since i have to submit these details, hence posting such questions here. You can also recommend any good tax consultant (not expensive) if you know any

Thank you very much in advance for your help.

Kind regards

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rahulpatel Member

19POSTS

11 years ago

Hello Chirag,

If you want more information on tax in english you can find on "samtog" website

beppi Germany/Singapore Expert

15679POSTS

11 years ago

You posted the same on another Expat forum, where I replied to you.
For the benefit of other readers of this forum, I copy/paste below:

beppi wrote:
Your employer's HR should be able to help you with many of these formalities. Ask them!

CHIRAGJAISWAL wrote:
a) Pensions insurance number
b) Health insurance
c) Long term insurance contribution

You have to join a German health insurance. If you opt for the public scheme ("gesetzliche Krankenkasse"), it doesn't really matter which insurer you choose and they will also apply for your social security number.
The last point is irrelevant in your case, as you are new member.

CHIRAGJAISWAL wrote:
d) Income tax bracket
e) Tax ID no.
f) Monthly tax allowance
g) Annual tax allowance

Which tax class (not tax bracket) to choose depends on many individual factors. For married couples, it can be 3/5 or 4/4 - if you earn more than your wife, you choosing 3 and her 5 is probably best.
Your wife will have to pay tax on her Indian-sourced income in Germany, too. Check the India-Germany tax treaty (if there is one) or consult a good tax consultant experienced in international income tax matters!
The tax ID number will be sent to you soon after you register your residence with the authorities ("Einwohnermeldeamt"). Make sure you mention you need one when registering.
You will probably have no tax allowances, so you may leave this blank.

CHIRAGJAISWAL wrote:
h) Confession

You can declare "non religious", unless you want to contribute money to the German catholic or protestant church.

CHIRAGJAISWAL wrote:
4) Which pension scheme would you recommend

Being member of the public pension scheme ("Rentenversicherung") is compulsory. You cannot choose.

CHIRAGJAISWAL[/quote wrote:

You can also recommend any good tax consultant (not expensive) if you know any

Tax consultant fees are fixed by law, so they all cost the same.