Tax

Steuergutschrift

Tax Credit

Simple Definition

A direct reduction of taxes or refund, most commonly from "Verrechnungssteuer" (Withholding on Dividends).

Why this matters to Expats.

If you declared your bank accounts and dividends correctly, you get 35% of the gross dividend back as a credit. It often appears as a payout or reduction on your final tax bill.

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