Generally fellowships are tax exempt as long as certain conditions are fulfilled:
The fellowship must be paid out of public funds or by a public or non-profit organization (as far as this is recognized by German law).
The fellowship must be granted with the goal of supporting research, academic or artistic education or further training.
The fellowship does not exceed the amount necessary to complete the research project or to pay for the education program and daily living expenses. The fellowship is granted according to the guidelines of the granting agency.
The fellowship does not require any services to be made in return or any form of employment on the part of the recipient.
Tax exempt status also means no social insurance contributions are paid.
If you are working at the University with an employment contract with the
, your income will be taxed. University of Heidelberg
Income taxes are deducted directly from your income by your employer and paid to the state. The amount of income tax deducted depends on your income, your marital or family status and your tax bracket.
Tax Card or Certificate for Tax Deduction
Since January 2013 we have in Germany electronic tax cards and all you'll have to do is to communicate your tax identification number to your employer. You receive this tax identification number, which has lifelong validity, by mail automatically after registering your place of residence at the residency registration office (Bürgeramt). More information is available on the web site of the Heidelberg tax office.
If you live outside of
, a different tax office may be responsible for you. You can search for the appropriate tax office here. You must inform the tax office directly about any changes to your tax card. Heidelberg
At the end of every calendar year, you can apply for an income tax adjustment through your local tax office. If you live in
Heidelberg, the tax office is responsible for you. By submitting an income tax return, it may be possible to receive a partial reimbursement of the income taxes that were deducted from your salary throughout the year. You can obtain the necessary forms directly from the tax office. Heidelberg
In some cases it can be worth it to pay the fees for a tax accountant to do your tax return for you. There is information about finding a suitable tax accountant here.
In order to prevent foreigners from paying taxes both in
Germany and in their home country, has entered into a so-called Double Taxation Convention with many countries. Germany
The convention establishes the country in which the taxes must be paid. If you remain in
for less than half a year (183 days), your income will be taxed in your home country if you have worked for a foreign employer and if the Double Taxation Convention gives the right of taxation to your home country. If one of these conditions does not exist in your case, your income will be taxed in Germany . Germany
Details about such issues are available in the Regulations regarding the Double Taxation Convention, which exist for countries in the EU as well as for some other countries.
The state also deducts church taxes along with income taxes (approx. 9% of income tax) for the large Christian churches. For that reason you have to indicate your religious affiliation when registering your place of residence at the residency registration office (Bürgeramt). The taxes that apply to you will be deducted directly from your income.
Responsible: Welcome Centre Team
Latest Revision: 2016-08-23