Information on taxes and social security contributions in Germany

In Germany, every employee is required to pay taxes and social security contributions. There are, however, certain exemptions:


IAESTE Trainees do not have to pay taxes if the payment does not exceed the amount specified in the annual Income Tax Law. Between the Federal Republic of Germany and a number of countries, double tax conventions have been agreed, which may allow a refund of paid taxes in the student's home country.

Social security contributions

Generally, students who complete internships in Germany, which are compulsory parts of their curricula, are exempt from the obligation to pay social security contributions.

This also applies if IAESTE trainees receive money solely from the DAAD. Ā 

In case a trainee has to pay taxes and social security contributions, a certain percentage of the wages is automatically deducted by the employer. The amount of taxes and social security contributions depends directly on the gross pay.