Without an IdNo these cases would be difficult to determine, since the tax offices would have no information about the person liable for payment of the tax due to the lack of tax collection. in the case of investment income that children earn from inherited assets capital). Under the Income Tax Act, natural persons who have a registered domicile or habitual abode in Germany are subject to income tax at birth.Īlthough these taxpayers are generally not yet liable to pay any income tax, these situations may nevertheless occur ( e.g. The individual taxation laws regulate who must pay taxes. People who are not registered, but pay taxes in Germany, will also receive an IdNo. One IdNo will be assigned to every person who is registered with a primary place of residence or sole residence in a civil registry in Germany. It is intended that the IdNo will replace the current tax number for income tax after a longer transitional period. Erroneous use of this data for another person is no longer possible. With the IdNo, it will also be possible to correctly assign the data that forms the basis of assessment to a specific person even across federal state boundaries. Some tax administration intra-group services, such as providing taxpayers with a pre-filled electronic tax return, are only possible because, thanks to the IdNo, tax administration employees are now able to allocate tax data from anywhere in Germany to exactly one person. At present, for example, a minor deviation in the spelling of a name ('Ullrich' instead of 'Ulrich') can make unambiguous identification of the person impossible. With the current tax number systems, taxpayers in Germany cannot be clearly identified. Regardless of moves, name changes or even restructuring in tax offices, tax data can always be allocated to the right person. To do this, new electronic communication and assessment procedures need to be created or existing ones improved. The federal government's goal is to make the taxation process more citizen-friendly and to modernize to save money. The IdNo makes tax administration services - such as the electronically provided, pre-filled tax return form or the automated processing of electronic documents - possible. The Federal Central Tax Office can only notify you of the IdNo you were already assigned.

The IdNo is permanently assigned to a person.

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