Knowledge of Taxes as the Treasury for the Student in Germany
"A citizen has to pay taxes with the same feeling with which the lover gives her lover a bouquet of flowers" - said once the German writer Novalis, one of the brightest representatives of Romanticism. The German tax history is known for one thing: the tax system in Germany is so difficult that tax advisers are not left without a job. For students there are special rules for payment of taxes and social contributions.
First, it should be mentioned that the German social security system provides the deduction of contributions for the following types of compulsory insurance: pension insurance (Rentenversicherung), unemployment insurance (Arbeitslosenversicherung), sickness (Krankenversicherung) and in case of need for care (Pflegeversicherung).
Regardless of whether a student is working or not, the latter two types of insurance are mandatory for him. And without a corresponding insurance policy potential student will not be enrolled in high school.
For all insured students, the monthly fee is regulated by law and it is 64.77 euros per month. The monthly insurance in case of need for care is 12.24 euros (for childless older than 23 years - 13.73 euros). However, these reduced rates are valid only for those students who attend no more than 14 semesters and have not reached 30 years. Rates of private insurance companies could be higher.
All other types of social security contributions and taxes are paid through the tax card (Lohnsteuerkarte). It can be obtained free of charge at the registered place of residence. In the future, the tax office sends reminders at the end of each year.
Amount of taxes and social security contributions for the student depends on his income. If a student earns less than 450 euros a month, it does not pay any taxes or social security contributions. However, if a student is working legally, his employer is required to pay for the student's small contribution to the pension fund.
If a student earns up to 946 euros per month, he receives a salary "gross for net", i.e. it is not subject to income tax. However, the student still pays the insurance fee to the pension fund and unemployment tax.
About the Author:Jennifer Delgado is a blogger at cheap essay writing service. She was studying in Germany and shared her experience as blogger.
