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Withhold, declare and pay income tax for service providers living abroad

Service Description

The 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. When the remuneration is paid, the recipient of the service must withhold, declare and pay the tax. The tax is withheld for the account of the provider of 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.

Process flow

You must register income tax for income with limited tax liability from service providers living abroad via the ElsterOnline-Portal (EOP) or the BZSt-Online-Portal (BOP).

Registration in the BOP:

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

Registration in the EOP:

  • You need a certificate to register in the EOP. To do this, call up the EOP and create a user account. You will receive the activation data by e-mail and the activation code for your account by post.
  • Activate your access in the EOP using the data. You will then receive a certificate that you can use to log in to the EOP at any time.
  • Apply in writing for a new tax number for the tax deduction procedure in accordance with Section 50a EStG
  • The BZSt will send you the new tax number by post.

Register for tax after registration:

  • Log into your user account online in the EOP or BOP.
  • Register the tax using the electronic data sheet provided in the EOP or BOP.
  • Pay the tax calculated in the online portal by bank transfer. Alternatively, you can issue the BZSt with a direct debit mandate. By participating in the SEPA Direct Debit Scheme, you ensure that your payment is received by the BZSt on time. You can find a template for issuing the direct debit mandate on the BZSt website. Please send the completed declaration of participation in the SEPA Direct Debit Scheme to the BZSt by post.

Who should I contact?

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

or

  • You are registered in the BZSt online 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
  • for applying for a tax number: 2 to 4 weeks

Legal basis

Appeal

Further Information

Author

Forwarding service: Deep link to the original portal

The text was automatically translated based on the German content.

Technically approved by

Federal Ministry of Finance (BMF)

Professionally released on

08.10.2020

Source: Zuständigkeitsfinder Thüringen (Linie6Plus)

No competent authority found

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