The Tax identification number is an eleven-digit identification number for natural persons in the German taxation procedure. It is issued by the Federal Central Tax Office (BZSt), generally remains valid for life and serves to uniquely assign a person for tax purposes.
What is the tax identification number?
The Tax identification number is used to uniquely identify a natural person in the taxation procedure. Each person may only receive one IdNr and each identification number may only be issued once.
The legal basis for the ID number can be found in particular in sections 139a and 139b of the German Fiscal Code (AO).
How is the Tax identification number structured?
The Tax Identification Number consists of a total of eleven digits. Ten digits form the actual number, while the eleventh digit is a check digit.
She is a so-called non-speaking number. Therefore, for instance, neither the name, date of birth, nor responsible Tax office can be deduced from the sequence of digits itself.
The Tax identification number remains unchanged even if personal details change, for example after moving house or getting married.
What is the significance of the ID number for ELStAM?
For the standard electronic procedure for retrieving the ELStAM the employee informs their employer of their Tax identification number and date of birth, among other things.
The employer uses this information to retrieve the electronic Wage tax deduction details and for the Income taxdeduction to be taken into account.
If an employee has not yet been allocated an identification number, the Income Tax Act provides for a certificate for wage tax deduction as a substitute for electronic retrieval in certain cases.
Tax identification number and Tax number – what is the difference?
The Tax identification number is personal and permanently assigned to a natural person.
By contrast, the Tax number is used by the tax authorities to process tax matters and should not be confused with the personal tax identification number. A person may come into contact with various Tax numbern over time or for different tax issues, whereas their tax identification number generally remains unchanged.
Where is Tax identification number used?
The tax identification number is used in various tax procedures to uniquely identify a person. In connection with the Payroll, it is particularly important for the ELStAM procedure and electronic Income Tax Certificate of importance.
