Fünftelregel

[kiplette]

We used the Fünftelregel to put an extraordinary income sum onto our Elster tax return for 2022.

The details were still sat there last year, and are still there now, but I think we should get rid of them - I think it gets entered the once, the maths is done, payment made, and everyone is finished with the subject.

Can anyone chime in on that?

[PandaMunich]

I think it gets entered the once, the maths is done, payment made, and everyone is finished with the subject.

Yes.

[kiplette]

Thank you

[SpaceOne]

Sorry to jump in, but I’m interested what happens if you go with this fifth rule, and permanently leave Germany at the beginning of next year and you are not tax resident anymore in Germany?

[PandaMunich]

What should happen?
The Fünftelregelung gets applied to a year, it doesn't reach into the next year.

[SpaceOne]

Isn‘t the tax on some extraordinary income, like severance, divided into next 5 years in case Fünftelregelung is used?
So you don‘t pay 100% of the income tax at once, but 20% each year?
My smart plan in that case would be to formally leave Germany at the end of first year and pay only first 20%.

[PandaMunich]

Isn‘t the tax on some extraordinary income, like severance, divided into next 5 years in case Fünftelregelung is used?
So you don‘t pay 100% of the income tax at once, but 20% each year?

No.
Please scroll down here for an example ofthe Fünftelregelung: https://www-sparkasse-de.translate.goog ... _hist=true