glossary

Digital nomads are entrepreneurs or even workers who work almost exclusively online and mainly use digital technologies. Digital nomads work wherever they want: in the coworking space, in the internet café, at the airport or on the beach.

That’s what makes them special, they are Independent to any location. Typical activities are programming, web design, SEO or blogging, but there are no limits to creativity.

Double Taxation Agreements (DTAs) are international treaties that allow states to avoid the same taxpayer repeatedly charging the same income for the same period with similar taxes. This happens when taxpayers are either simultaneously resident in two states or have sources of income located in countries other than the country of residence. In both cases, each affected state can claim its own tax claim against the taxpayer. In order to avoid double taxation, the state from which income originates (source state), on the one hand, reduces or restricts taxation in favor of the country of residence of the recipient of the income and, on the other hand, the State of residence confers income that can be taxed in the source State on its income Free taxation or credits the foreign tax attributable to that income on his tax.

(Quelle: www.bundesfinanzministerium.de)

From a tax point of view, “volunteer work” is an activity that is usually carried out on a part-time basis and serves the common good of society. Typically, volunteering is carried out in charitable organizations such as associations or foundations. It is also possible to exercise such honorary office in legal persons under public law (municipalities, municipal institutions, etc.).

Income from such employment can be tax-exempt up to a certain amount.

(Quelle: www.bundesfinanzministerium.de)

Low-value assets are goods that, if they meet the requirements, can be immediately written off in the full amount of the acquisition costs. A distribution over the useful life does not have to be done with GWGs.

Requirements according to § 6 Abs. 2 EStG

• Net acquisition costs up to 800 EURO (until 2017: 410 EURO)
• Independently usable
• Mobile assets
• Fixed assets

Crypto currency is money or fiat money in the form of digital means of payment. The principles of cryptography are used to realize a distributed, decentralized and secure digital payment system. The first publicly traded and arguably best known crypto field is Bitcoin.

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Fictitious self-employment occurs when, according to the underlying contract design, someone provides independent service or works services for a foreign company, but actually does non-independent work in an employment relationship. The consequence of this is that social security contributions and payroll tax are payable.

In this case, special caution is required, because first the client is liable for the outstanding employer and employee contributions to the social insurance, retroactively for up to 4 years.

The tax identification number (IdNr.) is an 11-digit, non-“talking” number. It therefore contains no information about the taxpayer or the competent tax office.

With the introduction of the IdNr, the taxation procedure should be simplified and bureaucracy reduced. It facilitates communication in the taxation procedure, because it allows a clear assignment of tax returns, notifications and any correspondence. The IdNr therefore remains valid for a lifetime and does not change when moving or marrying.

(Quelle: www.bundesfinanzministerium.de)