Charge method

This article or paragraph represents only the situation in Germany . Help to describe the situation in other countries.

The Anrechungsmethode is a fiscal construction for the avoidance of a double taxation.

In accordance with. § 34c exp. Persons unrestrictedly free of income tax, who paid abroad taxes on a foreign income ( § 34d EStG), can take 1 EStG into account these on the German tax, as far as the paid tax corresponds to a German tax.

In order to take however to the taxpayer into account no more tax, than in Germany to these income is allotted, a maximum amount computation is to be accomplished.


(A foreign income x tax)/sum of the income = maximum amount


This possibility of the reduction of a double taxation does not consist both for a foreign income of countries with those Germany a double taxation agreement has, and for such with those one exists, as far as this method is intended in the double taxation agreement.


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