Whether or not you have to pay tax when you are working at the TU Dresden depends on a number of factors.

Research stay based on a fellowship

If your research stay in Germany is supposed to take place in the framework of a fellowship you may, under certain circumstances, be exempt from taxation under German income tax law. It is certainly worth consulting the organisation which has awarded the fellowship on this point. Furthermore, you should find out whether the fellowship paid in Germany is subject to taxation in your own country.

The preconditions for tax exemption on fellowships in Germany (§ 3 No. 44 EStG) are:

• award from public funds or via a public or non-profit agency (as far as recognized according to German law)
• sponsoring research or academic or artistic training or continuing education
• no higher than the amount required to fulfil the research task or to cover living and training needs
• grant according to the regulations of the donor
• no quid pro quo requirement or employment of the recipient

Research stay based on an employment contract

If your research stay is based on an employment contract in Germany and will last more than 6 months you will basically be liable to taxation in Germany on your globally-earned income and assets. If you stay for less than 6 months, your income will be taxed in your own country provided that you work for a foreign employer and the double taxation agreement assigns the right of taxation in such cases to the home country. If one of these conditions does not hold, your salary will be taxed in Germany. Agreements exist with some countries stating that higher education teachers and researchers who come to Germany for a maximum of two years to work on research in a public research institution may pay their taxes in their own country. Details can be found in the double taxation agreements which exist in relation to the Member States of the EU and certain other countries (Overview of countries with existing double taxation agreements, German only).

The income tax you incur will be deducted from your salary at source.

At the end of each calendar year you may apply to the tax office in your place of residence to have your income tax adjusted ("Lohnsteuerausgleich"). This may entitle you to a partial reimbursement of  tax paid. The necessary documents can be obtained from the local tax office ("Finanzamt") or town hall ("Rathaus"). Often it is worth paying a tax accountant to help you complete your tax return.

Source: EURAXESS Germany