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

• Income generated by artistic, sporting, artistic, entertainment or similar performances carried out in Germany, for example

  • Commencement fees
  • Fees
  • prize money
  • Remuneration for participation in talk shows
• income from the exploitation in Germany of artistic, sporting, artistic, entertainment 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 activities as a member of the supervisory board of a German company

Income tax arises when the remuneration accrues to the person rendering the service. When the remuneration is paid, the recipient of the service must withhold, declare and pay the tax. The tax deduction is made 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
• in the case of remuneration for supervisory board members: 30 percent of the income, plus solidarity surcharge of 5.5 percent of the tax withheld
• if the tax is paid by the recipient of the benefit: 17.82 percent of the remuneration (43.89 percent in the case of supervisory board members), plus solidarity surcharge of 0.98 percent (2.41 percent in the case of supervisory board members) of the remuneration

You must declare income tax via the ElsterOnline portal or the BZStOnline portal.