ARTICLE · 19 JUNE 2024

Wage Tax Calculation Using The Daily Tax Table

RSM Ebner Stolz

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Since the amendment of the German wage tax guidelines in 2023 and therefore since 1 January 2023, the question arises as to how wage tax has to be calculated for employees with income which is partly taxable and partly exempt ...

GermanyTax

Since the amendment of the German wage tax guidelines in 2023 and therefore since 1 January 2023, the question arises as to how wage tax has to be calculated for employees with income which is partly taxable and partly exempt from wage tax in Germany.

As of 1 January 2023, it is required that the wage tax on current wages is not to be determined according to the monthly tax table but according to the daily tax table, if the employment relationship existed throughout the month and the employee receives wages in a month partly taxable in Germany and partly exempt from wage tax.

Affected employees

This includes cases of in Germany unrestricted taxable employees who, in addition to their German wages, also earn in other countries tax-free wages in a month according to a double taxation agreement (DTA) or the EU Foreign Activity Decree. However, the application of the daily wage tax table only has the effect of a potential temporary wage tax overpayment since an

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