The Lohnsteuerbescheinigung, or wage tax certificate in English, is a document that every employee in Germany receives from their employer at the end of the year. It summarizes all the income tax data relevant for the employee’s income tax return.
What is “Lohnsteuerbescheinigung”?
The Lohnsteuerbescheinigung is a crucial document for employees in Germany, as it contains all the necessary information for filing an income tax return. Introduced in 2005, it replaced the paper-based Lohnsteuerkarte (wage tax card). Employers are required to electronically transmit all relevant wage tax data to the tax authorities and provide employees with a paper copy of the Lohnsteuerbescheinigung[1][2]. This document includes details such as the employee’s gross income, tax class, and any tax deductions made throughout the year.
More information about “Lohnsteuerbescheinigung”
Since 2013, the process of handling wage tax deductions has been fully digitalized through the Elektronische LohnSteuerAbzugsMerkmale (ELStAM) system, which stores all tax-related data electronically. Employers access this data to calculate monthly wage tax deductions correctly. The Lohnsteuerbescheinigung that employees receive at the year’s end is a summary of this data, including total gross wages, taxes withheld, and contributions to social security[2][3][4].
Related to “Lohnsteuerbescheinigung”
Here are some additional terms that are related to Lohnsteuerbescheinigung:
- ELStAM: The electronic system used by employers to access employees’ tax deduction features.
- Lohnsteuerkarte: The predecessor to the Lohnsteuerbescheinigung, a paper document used until 2010.
- SteuerklasseThe term "Steuerklasse" translates to "tax class" in English. It refers to the categories under which taxpayers are grouped in... More (Tax Class): Determines the rate at which an employee’s income is taxed.
- Bruttolohn (Gross Income): The total income before any deductions.
The Lohnsteuerbescheinigung is an essential document for employees in Germany, serving as the basis for their annual income tax return.