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    drwhoo's Avatar
    drwhoo Posts: 1, Reputation: 1
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    #1

    Dec 22, 2011, 11:33 AM
    2-year tax exempt treaty Germany-US
    Hi there,
    I am a Swiss citizen who has been living in the last four years in Germany, where my last residency is. I am moving to the US (Boston) for a three year postdoctoral associate position at MIT. I have the following questions in relation to the 2-year tax exempt treaty between Germany and the US, and really hope somebody can help me:

    1. My contract and visa are for 3 years. Can I still use the treaty for the first 2 years after my arrival, or am I not eligible for it at all as my initial planned stay is already above 2 years?
    2. If I use the treaty do I have to pay taxes in Germany, how much would they be there?
    3. If I decide to pay US taxes, how much would that be for a Research associate (not fellow and hence employed by MIT) with a annual gross income of $52'000 - the last thing I heard were ~15%?

    Thanks a lot!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Dec 23, 2011, 07:14 PM
    1) There is no retroactive tax provision to the two-year tax exemption for visiting academics. That was removed under the 2008 Protocol, so, yes, you CAN stay for three years and be exempt from taxation for the first twenty-four months.

    2) I do not think you WILL pay taxes in Germany in the two-year tax-exempt period, but you should ask a German tax expert to be sure. This forum deals ONLY with U.S. taxes.

    3) If you do pay taxes, the marginal tax rate on $52,000 is 15%.
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