While the taxation of German social security pensions is not a new issue, it is an issue that that is just now coming to the attention of many Canadian residents that are receiving German social security pension. There are issues on both the German end and the Canadian end. Please find attached links covering the Canadian treatment and the German treatment:
Courtesy ‘Knowledge Bureau’:
http://www.knowledgebureau.com/newTools.asp?tab=NewsLetter&page=Current&type=News&ID=521
From Canada Revenue Agency:
http://www.cra-arc.gc.ca/tx/nnrsdnts/ntcs/grmny2005-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts/ntcs/tx-gssp-eng.html
From the German Revenue Administration (Steuerverwaltung):
http://www.finanzamt-rente-im-ausland.de/en/
To aid Canadian residents, the German Revenue Administration is now automatically sending assessments, thus alleviating the need to file German returns. These assesments should be verified though, and the taxes should be paid, if correct, and otherwise the assessment should be appealed. So that you are not taxed twice on the same income, you will likely qualify for a foreign tax credit on your Canadian return. Please feel free to contact me for help with these issues.
