Place of Residence in both countries. If a managing director has a place of residence in both countries he is subject to unlimited taxation in both countries. The assignment of all tax sources depends on where the person’s centre of life's interests are, that is to say to which country he has the closer personal and economic ties. Income tax-overview 2016 Tax rates and personal exemption Personal exemption 8,652 € Minimum tax-rate 14 % Maximum tax-rate 45 % from a taxable income in the amount of 254,447 € Employee standard deduc- tion Depositor’s standard de- duction (Xxxxxx- Pauschbetrag) 1,000 € 801 € Expenses for pensions 102 € Tax exemption for pen- sions: 22.4 % of the pensions received, plus additional allowance of max. 1,680 € 504 € Child allowance or child subsidy Child care allowance 2,304 € for each child 2,280 € for the first and the second child, 2,352 € for the third child; 2,652 € for the fourth and more chil- dren) 1,320 € for each child Account is taken for chil- dren under 18 years old, under 21 years old who are unemployed within the meaning of the code of social law (Sozialge- setzbuch III), under 25 years old, who are still in professional training, as from 25 years old, only in case of helplessness due to disability. Tax relief for single parent 1,908 € for single parent families, with one child living at home and for which the parent is eligible for the child subsidy or child allowance
Place of Residence in both countries. If a managing director has a place of residence in both countries he is subject to unlimited taxation in both countries. The assignment of all tax sources depends on where the person’s centre of life's interests are, that is to say to which country he has the closer personal and economic ties.
