Source: BUS Sachsen-Anhalt (Linie6PLus)

withholding, declaring and paying income tax for service providers living abroad

Description

The Federal Central Tax Office (BZSt) is responsible for collecting income tax on limited taxable income from service providers living abroad. Limited taxable income of service providers living abroad is:

Income generated by artistic, sporting, artistic, entertaining or similar performances carried out in Germany, for example
- Entry fees
- Fees
- Prizes
- 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) as well as
- industrial, technical, scientific and similar knowledge and skills (know-how)
Income from working as a member of the supervisory board of German companies

Income tax arises when the remuneration accrues to the provider of the service. With the payment of the remuneration, the recipient of the benefit must withhold, register and pay the tax deduction. The tax deduction is made at the expense of the provider of the service.

Amount of income tax:

15 percent of the revenue, plus solidarity surcharge of 5.5 percent of the tax deduction
in the case of remuneration for supervisory board members: 30 percent of the income, plus a solidarity surcharge of 5.5 percent of the tax deduction
if the tax is paid by the recipient of the service: 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 income tax via the ElsterOnline portal or the BZStOnline portal.

Requirements

You need a tax number from the Federal Central Tax Office
You are registered in the ElsterOnline Portal (EOP) and have an EOP certificate

You are registered in the BZStOnline Portal (BOP) and have a BOP certificate

Which documents are required?

none

What are the fees?

none

What deadlines do I have to pay attention to?

The recipient of the benefit must declare and pay the income tax withheld in a quarter by the 10th of the following month.

Processing duration

for registration in the BOP or EOP: up to 6 weeks
to apply for a tax number: 2 to 4 weeks

Who should I contact?

Contact form on the area of responsibility for withholding taxes on the website of the Federal Central Tax Office

Appeal

Forms: yes
Online procedure possible: yes
Written form required: no
Personal appearance required: no

Process flow

You must register income tax for limited taxable income of service providers living abroad via the ElsterOnline portal (EOP) or the BZStOnline portal (BOP).

Registration in the BOP:

First of all, you need your own tax number at the BZSt. To do this, call up the application for (new) registration/registration for the electronic transmission of registrations for withholding tax online via the BZSt website. Fill out the application and print it out. Sign the application and send it by post to the BZSt.
The BZSt will then send you your tax number by post. You will receive the admission code by e-mail.
Now you need a certificate for the BOP. To do this, go to the BOP and create a user account using the admission code. You will then receive the activation data by e-mail and the activation code for your access by post.
Activate your access in the BOP with the data. You will receive a provisional certificate.
Log in to the BOP with your provisional certificate to complete the registration. You will then receive your final certificate, which you can use to log in to the BOP at any time.
- Hints:
  - If you already have an ELSTER certificate, you can also use it to log in to the BOP.

Registration in the EOP:

You need a certificate to log in to the EOP. To do this, go to the EOP and create a user account. You will receive the activation data by e-mail and the activation code for your access by post.
Activate your access in the EOP with the data. You will then receive a certificate with which you can always log in to the EOP.
Submit a written application for the issuance of a new tax number for the tax deduction procedure according to § 50a EStG
The BZSt will send you the new tax number by post.

Registering the tax after registration:

Log in to your user account in the EOP or BOP online.
Register the tax in the EOP or BOP using the electronic data sheet provided for this purpose.
You pay the tax calculated in the online portal by bank transfer. Alternatively, you can issue a direct debit mandate to the BZSt. By participating in the SEPA direct debit scheme, you ensure that your payment is received by the BZSt on time. A template for issuing the direct debit mandate can be found on the BZSt website. Please send the completed declaration of participation in the SEPA direct debit scheme by post to the BZSt.