The complexities of taxation in a foreign country can be an overwhelming experience. For foreigners residing in Germany, one of the critical elements of this journey is obtaining a tax identification number. This alphanumeric code serves as your unique identifier for all tax-related matters during your stay in Germany.
This article aims to guide you through each of these aspects, from application to usage, ensuring that you fulfill your fiscal responsibilities while living in Germany.
Key Takeaways
- Registering your residence is the first step to obtaining a tax identification number.
- The Federal Central Tax Office typically takes 2-3 weeks to issue and mail the tax identification number.
- The tax identification number is critical for employment, banking, health insurance, and more.
- Timely updates, like a change of address or name, are crucial for maintaining accurate records.
- Common mistakes, such as confusing tax identification numbers with tax numbers, can lead to complications.
Legal Framework
Germany, known for its structured approach to matters of governance, has a well-defined legal framework surrounding taxation and financial matters for its residents, including foreigners. The tax identification number, or as referred to in German “Steueridentifikationsnummer,” is a cornerstone of this structure.
Federal Central Tax Office (BZSt)
The Federal Central Tax Office (BZSt) administers all tax identification numbers. This institution is responsible for the issuance, management, and supervision of tax identification numbers for all residents of Germany.
Purpose and Usage
Introduced to simplify the tax system, the tax identification number is a unique 11-digit number assigned to every person registered in Germany, regardless of nationality. Unlike the tax number (“Steuernummer”), which can change if you move to a different tax office district, the tax identification number remains consistent throughout a person’s life, ensuring clarity and consistency in the tax system.
Legal Mandate
The tax identification number system was initiated as per the Tax Identification Number Act (“Steuerliche Identifikationsnummergesetz” or TIN Act) in 2007. The act mandates the use of this number for tax processes and declares its universality for all tax residents. In essence, without this number, one cannot partake in tax-related activities or obligations in Germany.
Data Protection
In tandem with its commitment to efficient governance, Germany is also diligent about data protection. The BZSt maintains strict confidentiality concerning the information associated with each tax identification number. Only relevant tax authorities have access to this data, and its misuse is liable to legal repercussions.
Who Needs a Tax Identification Number?
Understanding the applicability of the tax identification number is pivotal for residents of Germany, especially for foreigners who may be new to the country’s tax system. In this context, it is crucial to recognize the categories of individuals who are required to obtain this identifier.
Permanent and Temporary Residents
Whether you are a permanent or temporary resident in Germany, as long as you are registered with the local authorities (“Einwohnermeldeamt”), you are required to obtain a tax identification number. This applies to both employed and unemployed individuals.
Foreign Employees
If you are a foreign national working in Germany, obtaining a tax identification number is not just advisable but mandatory. Your employer will request this number to correctly process your payroll and fulfill taxation obligations on your behalf.
Related: Minimum Wage in Germany – A Guide For Foreigners
Freelancers and Self-Employed Individuals
Foreign freelancers and self-employed individuals operating in Germany also fall under the umbrella of those required to secure a tax identification number. This is essential for reporting income, filing tax returns, and even issuing invoices to clients.
Students and Interns
Even if you are in Germany for study purposes or an internship and intend to undertake part-time employment, you will need a tax identification number. This requirement is not waived based on the nature or duration of your employment.
Non-Employed Family Members
Spouses and dependents who may not be directly engaged in employment but are residing in Germany are also issued tax identification numbers. Although they might not use it as frequently as those who are employed, having one is still legally mandated.
How to Apply for a Tax Identification Number
Obtaining a tax identification number is an integral part of establishing your financial identity in Germany. Despite its importance, the application process is relatively straightforward. Below are the primary methods through which you can apply for your tax identification number in Germany.
Online Application Process
Unfortunately, as of the latest update, Germany does not offer a direct online application process for a tax identification number. However, some online portals may allow you to initiate the process by filling out the required forms and directing you on how to submit them.
In-person Application Process
Register Your Address: The first step in obtaining a tax identification number is to register your residence with the local registration office (“Einwohnermeldeamt”). This step is unavoidable, as you will not be able to proceed without a registered address.
Receive a Confirmation: Once your residence is registered, you will receive a confirmation document (“Meldebestätigung”). Keep this document safe, as it will be required in the later stages of the application process.
Automatic Issuance: After registering, the Federal Central Tax Office (BZSt) will automatically issue your tax identification number. This will be sent to the address you registered with, usually within two to three weeks.
Request by Mail: If you do not receive your tax identification number within the stipulated time frame, you can write a letter to your local tax office requesting it. Be sure to include your confirmation document (“Meldebestätigung”) and a copy of your identification for this.
Required Documents
To apply for a tax identification number, you will generally need the following documents:
- Valid Passport or National ID card
- Proof of Residence (“Meldebestätigung”)
- Work Contract (if applicable)
- Residence Permit (for non-EU nationals)
In some cases, additional documentation like marriage certificates or birth certificates may be required, especially if you are registering family members.
Time Frame for Receiving the Tax Identification Number
Understanding the expected time frame for receiving your tax identification number is imperative for planning various financial and administrative activities.
| Event | Typical Time Frame |
| Register at local Registration Office | Immediate |
| Receive Tax Identification Number | 2-3 weeks after registration |
| Delays and Inquiries | Varies; contact tax office if delayed |
| Special Circumstances | Contact local tax office for possible expedited service |
Being aware of the timing can help alleviate stress and avoid unnecessary delays in your endeavors in Germany.
Standard Processing Time
Once you have successfully registered your residence at the local registration office (“Einwohnermeldeamt”), the Federal Central Tax Office (BZSt) typically takes between two to three weeks to issue and mail your tax identification number to your registered address. This period is an approximation and may vary depending on factors such as regional workload, public holidays, or unexpected disruptions.
Delays and Inquiries
If you have not received your tax identification number within the standard processing time, it is advisable to contact the tax office to inquire about the delay. When reaching out, be prepared to provide relevant information, such as your registration confirmation document (“Meldebestätigung”) and personal identification.
Special Circumstances
In some instances, the issuance might be expedited due to special circumstances, such as imminent employment commencement. In such cases, directly communicating with your local tax office and providing supporting documents may facilitate quicker issuance. However, it’s important to note that expedited services are not guaranteed and are at the discretion of the tax office.
Uses of the Tax Identification Number
Once you have received your tax identification number, it’s important to understand its multiple uses in your day-to-day life as a resident of Germany. This number is not merely for taxation purposes; it serves as a linchpin for various other activities and services that are integral to your life in the country.
Employment
For foreigners employed in Germany, your tax identification number is indispensable. Employers require this number to manage salary payments and withholdings correctly. Failing to provide this number can result in complications and delays in receiving your salary.
Banking
When opening a bank account in Germany, financial institutions often request your tax identification number as part of the account setup process. This is by the laws that aim to prevent money laundering and tax evasion.
Health Insurance
While enrolling in the public or private health insurance system, you will often be asked to provide your tax identification number. This ensures that your contributions are accurately recorded and facilitates streamlined communication between healthcare and tax authorities.
Tax Filing
Filing your annual tax returns is one of the most obvious uses of your tax identification number. The number allows tax authorities to easily locate your financial records, making the process more efficient for both parties involved.
Property Transactions
If you intend to purchase or sell property in Germany, you’ll find that your tax identification number is often required for completing the legal formalities associated with property transactions.
Government Benefits and Subsidies
If you are eligible for any government benefits, such as parental allowance (“Elterngeld”) or unemployment benefits (“Arbeitslosengeld”), you will need to furnish your tax identification number during the application process.
Maintaining and Updating Your Tax Identification Number
Once issued, a tax identification number in Germany remains valid for your entire lifetime. However, certain life events or legal changes may necessitate updating the information linked to your tax identification number.
Change of Address
If you move to a different residence in Germany, you must update your address with the local registration office (“Einwohnermeldeamt”). Upon successful registration, the new address will automatically be updated in the Federal Central Tax Office (BZSt) records, thus keeping your tax identification number information current.
Related: Cost of Living in Germany in 2023
Name Change
Life events like marriage or divorce might result in a name change. In such cases, you must notify the local registration office with the necessary supporting documents, such as a marriage or divorce certificate. Similar to the change of address, the name change will automatically be reflected in the BZSt’s records.
Change in Employment
While a change in employment doesn’t require an update to your tax identification number per se, you will need to provide your new employer with this number. Failing to do so can result in incorrect tax withholdings and delayed salary payments.
Loss or Theft
You should immediately inform your local tax office if you lose the physical document containing your tax identification number or it gets stolen. They will guide you through the process of obtaining a replacement. Usually, this involves filling out specific forms and submitting identification proofs.
Non-Residency Status
If you are leaving Germany and will no longer be a resident, there are formalities to deregister your residence at the local registration office. This will not invalidate your tax identification number but will mark you as a non-resident in the tax records.
Common Mistakes to Avoid
Securing and maintaining a tax identification number in Germany is a straightforward process, but mistakes can still occur, particularly for those unfamiliar with the country’s administrative system. Being aware of common pitfalls can save you time and prevent unnecessary complications.
Not Registering in a Timely Manner
One of the most frequent mistakes is the failure to promptly register your residence with the local registration office (“Einwohnermeldeamt”). This registration is a legal requirement and the first step in obtaining your tax identification number.
Delays in registering can lead to delays in receiving the tax identification number, which can in turn affect other areas of life, such as employment or banking.
Losing or Misplacing the Number
Once received, your tax identification number becomes crucial for various financial and administrative activities. Losing the document or failing to keep it in a secure place can cause inconveniences, especially if you need it urgently for tasks like job applications or tax filing.
Ignoring Updates
Whether it’s a change of address or name, disregarding the need to update your tax identification number can result in discrepancies in the official records. These inconsistencies can pose issues during tax filing or when availing of government benefits and services.
Mixing up Tax Numbers
People often confuse the tax identification number (“Steueridentifikationsnummer”) with the tax number (“Steuernummer”). While both are used for taxation purposes, they serve different functions and are not interchangeable. Using one in place of the other can lead to complications, particularly in employment and freelance work.
Failing to Deregister When Leaving Germany
If you are leaving Germany and have no intention of returning, it’s crucial to deregister your residence. Failing to do so can result in you being marked as a tax resident, which may have legal implications.
Overlooking Data Privacy
Germany takes data privacy seriously. Carelessly sharing your tax identification number can expose you to risks such as identity theft or fraud. Make sure to only provide this information to authorized individuals and institutions.
FAQs
What is the Difference Between the Tax Identification Number and the Tax Number?
The tax identification number (“Steueridentifikationsnummer”) is a unique 11-digit number assigned to every resident for their lifetime. The tax number (“Steuernummer”), on the other hand, is specific to your local tax office and may change if you move to a different tax jurisdiction within Germany. The tax identification number is primarily used for employment and is a requirement for all residents, whereas the tax number is often used for freelance work and business activities.
Can I Expedite the Process of Receiving My Tax Identification Number?
Expedited services are generally not guaranteed and are at the discretion of the tax office. If you have a compelling reason, such as imminent employment, you may contact your local tax office to inquire about expediting the process. However, there is no formal mechanism to ensure faster issuance.
I Lost My Tax Identification Number. What Should I Do?
If you lose your tax identification number, it is crucial to contact your local tax office as soon as possible. They will guide you through the process of obtaining a replacement. Typically, you’ll be required to fill out specific forms and submit identification proofs.
Is the Tax Identification Number Required for Short-Term Stays?
Even if you intend to stay in Germany for a short period, if you engage in any form of employment or part-time work, you are required to obtain a tax identification number. The requirement is not waived based on the duration or nature of your stay.
Do Children Need a Tax Identification Number?
Yes, children are also issued a tax identification number soon after their birth is registered. This is important for certain family benefits, such as child allowance (“Kindergeld”).
How Do I Update My Information?
Any changes in your personal information should be updated at the local registration office (“Einwohnermeldeamt”). This includes changes in your address or name. Once updated, the new information will automatically be reflected in the Federal Central Tax Office (BZSt) records.
Additional Resources
Federal Central Tax Office (BZSt): The official website provides comprehensive information on tax identification numbers and other tax-related matters.
Local Registration Office (“Einwohnermeldeamt”): Local government websites usually offer detailed guides on how to register your residence, which is the first step in obtaining your tax identification number.
Adult Education Centers (“Volkshochschule“): These centers occasionally offer courses on German law, including tax laws, which can be beneficial for understanding the taxation landscape in Germany.
