German tax court has ruled in favour of a Canadian recipient of German social security pension

A German tax court (Finanzgericht Mecklenburg-Vorpommern, Urteile vom 13. Januar 2016, 1 K 453/13 und 1 K 4/15) has ruled that the Canada-Germany Tax Agreement does not allow Germany to tax German social security benefits received by a resident of Canada. The decision is under appeal by tax authorities in Germany. Until the matter is finally determined, Germany will continue to assess taxes owing on Germany social security benefits.

To keep the tax year open for reversal of the original assessment if the tax court decision is upheld, you have to file a notice of objection in Germany on your assessment. This notice has to be filed no later than one month after the German assessment (see also the information given in the notice of assessment). There is no form for this. You have to provide a written statement indicating who you are and that you are objecting to your assessment based on the case above (name the case in your statement).

Send your statement to the tax office where your German taxes were assessed which will usually be the Neubrandenburg tax office. You can attach a copy of your notice of assessment. Contact information for the Neubrandenburg tax office

The German tax owing from an assessment is due until your objection is resolved. In the meantime, Canada will continue to provide foreign tax credits for German taxes paid on these pensions.

For more information about the taxation of German pensions, go to go to Additional information regarding the change to the taxation of German social security pensions and Change to the taxation of social security pensions received from Germany by a resident of Canada - BEGINNING 2005.

Date modified:

2016-04-21