date | theme
08. November 2019 | At withholding tax on licenses, operating expenses are deductible
17. January 2019 | Withholding tax according to § 50a EStG: Licenses – Artists – Supervisory Boards
31. January 2019 | Withholding tax on licence payments to EU/third-country companies
06. March 2019 | Tax deduction according to § 50a EStG: withholding tax for limited tax liability (this contribution)
Limited taxable licensors, artists and supervisory boards are subject to limited taxation in Germany. The German customer or licensee has to withhold, register and pay 15% or 30% withholding tax for the foreigner. A special taxation procedure must be observed here: the tax deduction according to § 50a Income Tax Act. This is in principle a withholding tax. Another special feature is that the debtor of the remuneration has to pay the tax instead of the recipient.
1st introduction
1.1. What is it about?
As with the payroll tax and the withholding tax, the tax deduction according to § 50a EStG is also a deduction tax. Deduction taxes are deducted directly from a remuneration received by a taxpayer and thus do not get into his hands. The tax deduction pursuant to § 50a of the EStG shall be required by the tax office in the case of limited taxpayers from the following income referred to in paragraph 1 of § 50a EStG:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.