Withhold, declare and pay income tax for service providers living abroad
Source: BUS Rheinland-PfalzThe Federal Central Tax Office (BZSt) is responsible for collecting income tax on income with limited tax liability from service providers living abroad. Income with limited tax liability from service providers living abroad is as follows:
-
Income generated by artistic, sporting, artistic, entertaining or similar performances carried out in Germany, for example
- appearance fees
- fees
- prize money
- Remuneration for participation in talk shows
- Income from the exploitation in Germany of artistic, sporting, artistic, entertaining or similar performances carried out in Germany
-
Income from the provision of
- rights (for example: film rights, music rights, personal rights, copyrights, trademark rights, patent rights) and
- commercial, technical, scientific and similar knowledge and skills (know-how)
- Income from work as a member of the supervisory board of German companies
Income tax is incurred when the remuneration accrues to the provider of the service. Upon payment of the remuneration, the recipient of the service must withhold, declare and pay the tax. Tax is withheld for the account of the person providing the service.
Amount of income tax:
- 15 percent of the income, plus solidarity surcharge of 5.5 percent of the tax withheld
- for remuneration for supervisory board members: 30 percent of the income, plus solidarity surcharge of 5.5 percent of the tax deducted
- if the tax is paid by the recipient of the benefit: 17.82 percent of the remuneration (43.89 percent for supervisory board members), plus solidarity surcharge of 0.98 percent (2.41 percent for supervisory board members) of the remuneration
You must register for income tax via the ElsterOnline portal or the BZSt online portal.