Are you working hard abroad to ensure a better future for your family, while your child is waiting for you in Poland? Are you wondering whether you are entitled to KindergeldGerman child benefit? This question is extremely important for many Polish families who are separated by a border.
Complicated European Union rules
The rules on family benefits within the European Union are intricate and complicated. Particularly in Germany, difficulties of interpretation arise from the so-called "family allowance". residence of the holder, closely linked to tax residence. German office Familienkasse and financial courts often analyse the facts in great detail, looking at every detail of a person's life and work in Germany.
If you want to know whether you are entitled to the Kindergeld benefit, read our article: Kindergeld - German pension.
Your centre of life - a key element in your application for Kindergeld
One of the most difficult challenges faced by parents applying for Kindergeld is the need to demonstrate where their life centre. You may think that if you work in Germany and pay taxes there, the matter is clear. Nothing could be further from the truth. The German Finance Court may have doubts, especially if your child lives in Poland and you share your life between two countries.
Legal basis
Pursuant to section 62 of the German Income Tax Act, a person entitled to family allowance in Germany is anyone who is domiciled or habitually resident in Germany, or without domicile or habitual residence in Germany is subject to unlimited tax liability, or is treated as subject to unlimited tax liability pursuant to section 1(3) of the same Act. It is this provision that poses enormous difficulties of interpretation.
Example from practice
We recently represented a client whose situation emphatically demonstrates how complex these cases can be. Before the Financial Court in Leipzig, we had to face difficult questions:
- Who provides day-to-day childcare in Poland?
- What are our client's family relationships?
- Where is he spending Christmas?
- Where does he do his grocery shopping and fill up on fuel?
The judge even inquired into the details of the client's place of work and even the type of work she did - whether it was in a specific environment, for example.
All this to demonstrate that the centre of the woman's life interests is Poland, not Germany. This would allow the German Familienkasse save the benefit paid to her.
Documentation - the necessary basis for the application
Kindergeld requires a solid evidentiary basis. The official certificate of German tax residence, although valid, is unfortunately not binding on the court in these cases. This means that a certificate of tax residence in Germany issued by the German tax authorities may still not mean that you have your centre of interest in Germany.
If you do live in Germany, but it is not your intention to reside here permanently, you do not care to keep your flat to live in, you do not habitually fill up your tank here or you do not use the electricity (it is a good idea to keep all your bills), you can get into trouble. The court or the authorities may decide that you do live in Germany, but that your residence is not your centre of life. In that case, for the purpose of determining the priority country for the payment of family benefits, the country in which you live will be Poland, especially if you have just left your child with a grandmother, aunt or other family member in Poland.
Last resort
What can make the difference? A corresponding certificate from the tax office in Germany that clearly indicates that 90% of your income is from Germany. Such an option is possible, but requires additional measures in accordance with § 1(3) EStG, the German Income Tax Act.
What to do when the court has doubts?
If you find yourself in a similar situation, don't give up. It is worth collecting evidence in advance:
- Testimony from neighbours or landlord confirming that you actually live in the flat you are renting.
- Fuel receipts.
- Purchase invoices for groceries.
- Electricity bills confirming the consumption for the month.
However, if, as in the case of our client, you are not able to meet these requirements, it is advisable to rely on earning income in Germany 90% and proving this before the authorities or the court. Then the place of residence will lose its importance and will not be taken into account in determining the right to Kindergeld.
Conclusions and conclusion
Kindergeld is not only a financial issue, but also one that touches the emotional side of many families' lives. If you work in Germany and your child lives in Poland, preparing an application is a process that requires not only legal knowledge, but also a thorough analysis of your life situation.
If you would like to make enquiries and find out how your case stands, do not hesitate to make an appointment for a legal consultation. The number of benefit recovery cases lately is alarming. It is worth knowing your rights so that you do not have to return benefits for reasons you are not at fault for.
Contact us
Do you have any questions? Get in touch with us. We will take care of your rights and finances.
Make an appointment for a legal consultation - www.bktkancelaria.pl/kontakt.
