What is an Income Tax Certificate and What Does It Include?

At the end of the year, every employee in Germany should receive an income tax certificate from their employer. With this document, you can check your annual income as well as the taxes and insurance contributions you have paid. This form contains much more information that is useful for the annual tax return in Germany. What exactly is an income tax certificate? What else can we find in it? When is the income tax certificate issued? In today’s article, we have compiled the most important information about the German income tax certificate – we recommend reading it.

The German income tax certificate – what is it exactly?

The income tax certificate (LSB) is an official document issued by the employer that provides an overview of annual income, taxes withheld, and social contributions. It is one of the most important documents for the yearly tax return and is essential for settlement with the tax office.

Every employer is obliged to issue this certificate once a year and provide it to the employee. This applies exclusively to employees with employment subject to social insurance contributions.

Don’t forget other important documents**

In addition to the income tax certificate, you will need many other documents for a complete tax return. You can find a detailed overview of which documents you need for your tax return in our comprehensive guide. There you will also learn which additional proofs can increase your tax refund.

Important: The income tax certificate is issued separately by each employer. This means that employees who have worked for several companies during the year will receive a separate certificate from each employer.

Income tax certificate in Germany – by when must it be issued?

You already know that without an income tax certificate it is not possible to settle with the German tax office, and you therefore cannot expect a tax refund from Germany. At this point, we can move on to another important aspect, namely the time of issuance of the income tax certificate and the deadline by which it must be issued.

Employers must keep an eye on the deadlines, as they have until the end of February of the following year at the latest to issue the income tax certificate. However, it may happen that the tax card does not reach the employee until the beginning of March, because itfalls on a Sunday or a public holiday.

An example of this was the year 2021, when February 28 fell on a Sunday – so the deadline for the electronic transmission of the income tax certificate was postponed to the next working day, March 1st.

Electronic income tax certificate 2025 – when is it coming?

When can you expect a printout of the electronic income tax certificate for 2024? In this case, there are no changes due to a public holiday, so the tax card should reach you by February 28 at the latest. Sometimes, however, employers issue them earlier – even before the new year begins (usually in December).

Income tax certificate Germany – Explanation of the field numbers on the document

But let’s get to the heart of the article, namely what is actually on the income tax certificate. You should know that while the document shows how much income you earned in the previous calendar year and how much income tax you actually paid, itis much more than just a simple annual certificate.

The reason for this is that it contains many more relevant pieces of information, such as your religious affiliation. Today, we will discuss the most important elements of the German tax card, which help determine the taxpayer’s actual tax situation.

• Column 1 Certificate period/Duration of employment – these are the employment dates in Germany. Note that the number of working days is also relevant for determining your tax liability (rules for taxation of residents or non-residents).
•  Column 3: Gross salary – Here the total taxable income of the employee for the year is stated. This includes salary, bonuses, and other monetary benefits. Important: The German tax system distinguishes between three types of tax: normal income tax, solidarity tax, and church tax. You will find information about the contributions paid in columns 4, 5, and 6 on your tax card.
• Column 4: Withheld income tax – income tax prepaymentpaid.
• Column 5 Solidarity surcharge – paid solidarity surcharge.
• Column 6 Church tax – prepaid church tax. If the taxpayer did not declare a religious affiliation, this tax is not paid, and thus field number 6 remains empty in that case.
• Column 16: Tax-free income from double taxation agreements – this refers to income exempt from taxation, calculated based on a double taxation treaty. This applies to taxpayers who were sent by a German employer to work in another country, such as Poland. In this case, the taxpayer should obtain a tax certificate not only from Germany but also from the other country where he or she worked during the relevant year.
• Column 17 Tax-free employer allowances for journeys between home and primary workplace – this field concerns information on the tax exemption for journeys made by the employee between home and work.
• Column 20: Tax-free meal allowances for work-related travel – this item concerns people who took part in business trips within Germany during their work. This information refers to the flat-rate tax, which can have a significant impact on the possible tax refund.
• Column 21 This tax relief applies to employees who, for work-related reasons, have to maintain a second household at a different location. This can apply both within Germany and abroad, for instance if your main residence is in Poland while your workplace is in Germany. The prerequisite is that your center of life remains at your main residence and that the double household is work-related. For employees in certain industries, there may be other relevant deductions noted on the income tax certificate. Especially in the construction industry, roofing, scaffolding, and landscaping, the winter construction levy is an important item. This levy is deducted from the gross salary and should be claimed as income-related expenses in the tax return.
• Column 22a and 23a Employer share and employee share of statutory pension insurance – these two fields contain the employer and employee contributions to pension insurance. The amount of these contributions can be deducted in the annual tax return.
• Column 25 and 26 Employee contributions to statutory health insurance, employee contributions to long-term care insurance – this field contains contributions to health and long-term care insurance. These expenses also have a real effect on the tax calculation and thus on the tax overpayment.
• Column 28 – Contributions to private health and mandatory long-term care insurance or minimum insurance lump sum – contributions to private health insurance and long-term care insurance.

The electronic income tax certificate in Germany – what else does it contain?

As we have already mentioned, the income tax certificate is not a simple document. In addition to the information described above, this document also contains more basic details, such as the following:

• Date of birth,
• Tax class,
• Tax identification number,
• Address and telephone number of the employer,
• Family allowances granted.

If your income tax certificate is missing or incorrect

There are cases where employers do not issue a German tax card despite their obligation. What should you do in this case? If you have not received your income tax certificate or have possibly lost it, you should first contact your employer or the HR department of the company you worked for.

The same applies if you come across incorrect information. If this is the case, call your employer and mark the errors on your tax card. Thesemust be reported to the tax office.

If you need help with tax returns from Germany, visit Taxando. If you choose the PREMIUM package, you can count on the professional support of a tax advisor andfast, secure, and high tax refunds. We encourage you to give it a try!