There are no special payment procedures on termination of residence, and no tax clearance is required.

Income tax in Germany The income tax system in Germany. All your income needs to be reported to the German authorities. You have lived in Germany for no more than 6 months? Employed workers in Germany will be subject to a payroll tax, and therefore don’t need to submit a tax return – but many people still do in the hope of receiving a refund. After leaving Germany, the employee is no longer subject to unlimited German taxation, but may be taxed as a non-resident on income from German sources, such as on bonus payments for the assignment period. Non-residents are taxed on their German income only. If you have worked more than 183 days in Germany, and if your country has signed agreements with Germany to avoid double taxation (Doppelbesteurung), you must pay income tax in Germany.

You are not considered tax resident, and pay tax only on income earned in Germany (limited tax … The fiscal year in Germany runs from January 1 to December 31.

Germany has signed agreements with hundreds of countries to avoid double taxation. … You are considered ‘ordinarily resident' in Germany and, as such, are subject to unlimited tax liability and must pay tax on your worldwide income there. As is the case for people resident in Germany, non-residents (people with limited tax liability in Germany) are subject to withholding tax on income earned from employment by an employer in Germany (wages tax) and on certain types of income from capital assets (final withholding tax, and withholding tax on income from capital). If you have income outside of Germany the Double Taxation Treaty between Germany and the country where your income comes from will tell you which of the two countries involved has the right to levy taxes. If you live and work in Germany you are usually taxable in Germany on your foreign income worldwide.