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dacojoma
Dec 4, 2008, 03:23 AM
Hello all,

I have a complicated question and situation. I am a American citizen who resides in Germany. There was a recent Tax Ratification between the two nations. Now the qestion is,
I am a registered resident and a American citizen who is employed by the United States Consular Mission to the Federal Republic of Germany, ( U.S. Consulate Frankfurt ) according to the 1923 Consular Agreement all American citizen employees of the Consular Mission are exempt from German Federal income tax ( we pay U.S. income tax). We do not have the GErman version of a W-2 (Lohnsteurkarte). As far as I know and I have search the internet and can not find anything were that has been abolished. So the question do have to pay German income tax?

AtlantaTaxExpert
Dec 4, 2008, 07:46 AM
Negative.

You are a U.S. government employee stationed in Germany. It is pretty much standard procedure that government employees stationed in foreign countries to perform their duties as government employees are exempt from the host countries income taxes. That is also true for consulate employees of foreign governments who are stationed here in the U.S.

This being the case, you are NOT required to pay German income tax on your consulate job.

If you work a second job on the German economy, or trade stocks on the German stock market, or sell capital assets on the German economy, then (and only then) German income taxes may be due.