Exemption method and credit method

There are two methods to avoid the double taxation, the exemption method and credit method. The exemption method is common between western countries that do not have a large difference in their tax rates. The individual pays German taxes only for the German income. The credit method is common with countries where the tax rate is a lot lower than in Germany (e. g. Middle Eastern and Asian countries). In these cases, the individual pays taxes in Germany for his world income and receives a credit for the foreign taxes paid.

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Krischan TreydePlease contact me if I may give you further explanations.
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Krischan (Kris) Treyde (CV)
Lawyer and Tax Consultant