Online message – Wednesday 04/26/2023
Ukraine War | Taxation of refugees from Ukraine (hib)
There are no signs of a rapid change in the double taxation of income from refugees from Ukraine, which is threatened in certain cases. At a meeting of the finance committee on the parliamentary groups judged a move by the German-Ukrainian Chamber of Commerce and Industry mostly critically.
Background: The chamber had described cases of refugees who continued to work for companies in Ukraine after their flight and received wages from there that were also taxed in Ukraine. After 183 days in Germany, this income would also have to be taxed in Germany. Despite the German tax credit provided for in the double taxation agreement, the Ukrainian authorities are not granting it. The chamber recommended proceeding in these cases as with cross-border commuters during the COVID period and not taxing them in Germany. The days of forced stay in Germany due to the flight should be classified as working days in the Ukraine.
This is further explained:
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Die
federal government noted that in these cases it is not possible to proceed as with the consultation arrangements with neighboring countries during the COVID period. Because an agreement at administrative level cannot permanently modify a double taxation agreement. There is also no initiative from Ukraine. Aid for Ukraine should better be implemented on a non-fiscal level. -
According to the
SPD parliamentary group these are not isolated cases. It should be considered whether a solution could be reached that goes beyond the Chamber’s proposals. The
CDU/CSU parliamentary group took the position that support for Ukraine should come directly from the federal budget and not through taxes. The SPD and Union factions suggested looking for a common European solution. -
Die Alliance 90/The Greens faction shared the government’s assessment that it is not the right way to change a double tax treaty that has been passed by law at the administrative level. A solution should be sought together with Ukraine. The FDP parliamentary group also supported the government’s position. Just like the Bündnis 90/Die Grünen parliamentary group, the FDP parliamentary group also spoke out in favor of an unbureaucratic solution.
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Die
AfD faction pointed out that those affected were not here voluntarily. That sets them apart from the other cases. The involuntary stay is not automatically to be regarded as a change of residence. -
Die faction The Left basically shared the legal opinion of the government. Ukrainian citizens should be better informed about the tax issues. The group also recommended starting talks on the subject with Ukraine.
Those: hib, today in the Bundestag No. 304/2023 (RD)
Source(s):
NWB AAAAJ-38550