Students earning less than 450 euros per month do not pay taxes
"A citizen should pay taxes with the same feeling with which a lover gives his beloved a bouquet of flowers," the German writer Novalis (Novalis), one of the prominent representatives of Romanticism, once remarked. History is silent about the statements of modern Germans regarding taxation. One thing is reliably known: the tax system in Germany is so complex that tax consultants are never out of work. Special rules for the payment of taxes and social contributions exist for students.
Medical insurance is indispensable
First of all, it should be mentioned that the social security system of the Federal Republic of Germany provides for the deduction of contributions for the following mandatory types of insurance: pension insurance (Rentenversicherung), unemployment insurance (Arbeitslosenversicherung), health insurance (Krankenversicherung), and long-term care insurance (Pflegeversicherung).
Regardless of whether the student works or not, the last two types of insurance are mandatory for him. Moreover, without presenting the corresponding insurance policy, a prospective student will not be enrolled in a university.
For all students insured in public health insurance funds, the amount of the monthly contribution is regulated by law and equals 64.77 euros per month. The amount of the monthly long-term care insurance is 12.24 euros (for childless individuals over 23 years of age – 13.73 euros). However, these reduced rates are valid only for students who have studied for no more than 14 semesters and have not reached 30 years of age. The rates of private insurance companies may be higher.
Taxes via tax card
All other types of social contributions and taxes are paid via the tax card (Lohnsteuerkarte). It can be obtained free of charge upon registration at the place of residence. Subsequently, the tax office sends it home at the end of each year without a reminder.
The amount of taxes and social contributions for a student directly depends on his income. If a student earns no more than 450 euros per month, he pays neither taxes nor social contributions. Nevertheless, if the student works legally, his employer is obliged to pay a small contribution to the pension fund for the student.
To pay or not to pay?
If a student earns up to 946 euros per month, he receives a "gross for net" salary, meaning that no income tax is deducted from him. However, in that case the student still pays the insurance contribution to the pension fund and unemployment insurance.
Many students work unevenly during the year: they literally "slog" during the holidays to save enough money for the next semester. So it turns out that in the summer months they earn more than the tax-free amount for income tax.
In such cases, one must consider: if the annual income does not exceed 11.363 euros (this threshold was set for 2014), then the tax office returns the withheld income tax and the so-called solidarity surcharge (Solidaritаtszuschlag) the following year.
In addition, the student has the right to deduct expenses related to studies from taxes (for example, money spent on stationery and books). However, it is important to remember: the tax office will not return the collected "surplus" to the "poor student" on its own initiative. At the beginning of the year, the student must take care of this himself by submitting the relevant documents to the tax office.
About the modern "tithe"
Religious students should take into account that in Germany, parishioners of the Catholic and Protestant churches pay the so-called church tax. Moreover, it is levied automatically if, when filling out the registration form at the place of residence, you put a cross in the corresponding field about religious denomination.
Olga SOSNITSKAYA,
Deutsche Welle