Foreign income is on the agenda of many companies. However, they can also be incurred in the private sector, for example if a rental property is located outside Germany. In these cases, the determination of foreign income is important, because the German tax office requires a calculation according to the principles applicable in Germany. So let’s take a look at how foreign income is determined in practice!
Principle 1: Determination of foreign income by German methods
In § 34d EStG, the legislature finally regulates the foreign income and its associated constituent elements. Here, excerpts apply:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.