In addition to the unlimited tax liability, German income tax law also knows the limited income tax liability. According to § 1 (4) EStG, it subjects limited taxable income within the meaning of § 49 EStG to domestic taxation. In addition, § 2 AStG, which standardizes the extended unlimited tax liability, is important. Let us take a look at the main regulations and particularities!
- Unlimited tax liability (§ 1 (1) EStG): Exists if a natural person has either his residence or habitual residence in Germany
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.