Tax liability is the most important basis for the application of the Income Tax Act (EStG). Without the existence of unlimited and limited tax liability, the study and practical work of a tax consultant would probably be reduced to a maximum of one third of the content. So before we deal with individual types of income and income, we should know the principles of tax liability.
The legislature has also recognized the importance of unlimited tax liability and therefore clearly regulated it in § 1 (1) EStG. Accordingly, natural persons who are subject to unlimited income tax in Germany are:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.