Dear all,

I need some tips on how to minimize/save Taxes payable in Germany. Please let me what are the components of salary/wages which is exempted from Taxes in Germany?

For Ex: In countries like India, Australia we have Basic Salary (Taxable), Bonus(Taxable), House Rent Allowance(Tax free), Special Allowance(Tax free), Investment in Mutual funds(Tax free upto a limit), Entertainment Allowance (Tax free), Travel Allowance(Tax free) etc.

I would like to re-negotiate with my employer in Baden Wuerttemberg to include Salary components which is tax free or at least which attracts minimum tax.

Vielen Dank,
Truster

If it's related to your salary, then you can minimize nothing.
The only thing you can do to minimize it, if that can be considered as the word is the maximize the amount of money you can get back after your tax declaration, taking in account that you won't be getting 100% back.
But the paradox is: in order to get more back, you have to spend during the year (giving money to charity, buying stuff related to your work, etc), get married and have a kid :-)

D.