Filing requirements and payment of tax

Domestic taxpayers are required to fle an income tax return if in-
come for a particular assessment period exceeds the basic level
of tax-exempt income (Grundfreibetrag: € 8,652) and the income
has not been subject to tax withholding. Specifc provisions
apply to income tax returns fled jointly by married couples and
civil partners. With regard to income from employment, there is
often no requirement to fle an income tax return since the with-
holding of wage tax will already have ensured that the income
has been subject to taxation. In such cases, a special annual
wage tax adjustment (Lohnsteuerjahresausgleich) is performed
by the employer. Hence the amount of taxes for the year is set-
tled as soon as possible.

A non-resident individual must file an
income tax return whenever he/she has German-source income
unless the tax liability is deemed to be satisfed by withholding
at the source.