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Quick answer: Key terms to know are Bruttolohn (gross pay), Nettolohn (net pay), Lohnsteuer (income tax deducted from pay), Steuernummer (tax number), and the difference between Freiberufler (freelancer in a liberal profession) and Gewerbetreibender (commercial business operator).
Pay Slip Vocabulary (Gehaltsabrechnung)
Every employee in Germany receives a monthly pay slip (Gehaltsabrechnung or Lohnabrechnung). The main lines are:
das Bruttogehalt / der Bruttolohn
gross salary before deductions
das Nettogehalt / der Nettolohn
net pay after all deductions
die Lohnsteuer
income tax deducted directly from pay by employer
der Solidaritätszuschlag
solidarity surcharge (Soli) added on top of income tax
die Kirchensteuer
church tax, deducted only if you are registered with a church
die Krankenversicherung
health insurance contribution
die Rentenversicherung
pension insurance contribution
die Arbeitslosenversicherung
unemployment insurance contribution
die Pflegeversicherung
long-term care insurance contribution
die Steuerklasse
tax class (I to VI, affects how much Lohnsteuer is deducted)
Tax Office and Annual Tax Return
die Steuererklärung
annual tax return
die Steuernummer
tax number assigned by the local Finanzamt
die Steueridentifikationsnummer (IdNr)
permanent national tax ID, assigned at registration
die Einkommensteuer
income tax on total annual income
die Umsatzsteuer (USt) / Mehrwertsteuer (MwSt)
VAT (sales tax, currently 19% standard rate)
die Steuererklärungsfrist
tax return deadline
das Elster
the German tax authority's online filing portal
Freelance and Self-Employment
Germany distinguishes between two categories of self-employed workers. The category you fall into affects which taxes apply and what registrations are required.
Freiberufler vs Gewerbetreibender
Freiberufler (liberal profession)
Includes doctors, lawyers, architects, journalists, artists, programmers (in many cases), and translators. Register only with the Finanzamt. No Gewerbesteuer.
Gewerbetreibender (commercial trader)
Covers most other business activities. Must register a Gewerbe at the Gewerbeamt. Pays Gewerbesteuer above a threshold. Also registers with the Finanzamt.
der Freiberufler / die Freiberuflerin
freelancer in a liberal profession
das Gewerbe
commercial business / trade registration
die Gewerbeanmeldung
registration of a commercial business
die Gewerbesteuer
trade tax paid by commercial businesses
die Kleinunternehmerregelung
small business rule, allows not charging VAT below a turnover threshold
die Umsatzsteuervoranmeldung
advance VAT return (filed monthly or quarterly)
die Betriebsausgaben
business expenses (tax-deductible costs)
Key Phrases for Work Situations
Ich bin selbstständig.
I am self-employed.
Ich arbeite als Freiberufler.
I work as a freelancer.
Ich bin beim Finanzamt angemeldet.
I am registered with the tax office.
Ich brauche meine Steuernummer für die Rechnung.
I need my tax number for the invoice.
Wann ist die Frist für die Steuererklärung?
When is the deadline for the tax return?