FlyerTalk Forums - View Single Post - RTW for business travel vs. German taxes
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Old Feb 26, 2007, 4:42 pm
  #13  
Flying Lawyer
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Originally Posted by Rambuster
You pay taxes in Germany ?

I guess with your travel profile (i.e. outside any country more thasn half the year) you could get away with paying taxes somewhere less "expensive" - provided your employer plays along ...
Inter alia I do. Most international law firms are structured as "tax transparent" partnerships. Having said so, income is not taxed at partnership level but at the level of the individual partner. As a result, a partner has to pay taxes on different portions of the income where such income occurs (eg. Poland. Germany, UK, France, Italy, US, China).

This brings along one big benefit if you consider the two Germans terms "Progression" and "Grundfreibetrag", instruments which are available in most jurisdictions.

My personal business expenses (or: Sonderbetriebsausgaben, most of it cost for further education or personal BD) are relevant for my German tax bill because I decided to keep residence for more than 180 days a year in Germany so these discussions are not really new to me. Firm related business travel is accounted for at partnership level. Tax authorities follow the principle that everything will be considered as business related what has been reimbursed by the partnership.
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