Taxes: Foreign contract but workplace in Germany

Hello!

am I required to pay taxes in Germany for 2009 in my situation?

A quick overview of my situation:

I have been living and working in Germany from August 2009. I am a resident of Czech Republic.
I am not employed, I am a freelancer (at least that is my status in Czech rep.). I have a freelance contract with a Czech company and I work for a client of theirs in Germany.
So my source of income is in Czech republic but I stay and work in Germany. My contract explicitly states I myself am responsible for my taxes.

As far as I have explored the German tax system, I'm inclined to say that I should tax this income in Germany, because the place of work is here, but I wonder if the fact that the source of income is in Czech rep. changes the situation anyhow?

Also, if I have to pay here, what is my status here? I'm not a German Freiberufler, I am not employed, am not unemployed, I am not a student.
Should I seek assistance of a Steuerberater/Verein?

Any suggestions/tips appreciated.
Petr

Where you actually live / reside is what countes. That is: where you actually spend your time (at least I think 186 days a year).

Your post seems to have got it wrong on that. If you spend your time in Germany (as you say), then you are a resident of Germany for tax purposes, not a resident of the Czech Republic (even if you keep a property etc there).

Thank you for your answer. As I come to understand the situation:

1. If I'm here (in Germany) 183 days or more, I pay taxes in Germany from my world income.
2. If I'm here for a shorter period (which is my case), I'm only taxable for the income "sourced" in Germany. Where I'm not sure is, if the fact that the contract is signed in Czech republic and that's where I get my money from, helps any... I'm still not sure, but I see it 90:10 for Germany.

Anyone has any idea on what my status here is? unemployed/freelancer/nomad? Should I worry about this and go register myself somewhere?
What is the best way for me to go about all things taxes? Do-it-yourself, Steuerberater, Steuer-Verein? My income will be circa 28K Euros for the five and a half months period.

Cheers,
Petr

Schwarzarbeiter ... unless you have the required German work permit

Well, that would be rather surprising to me.
But thank you for the suggestion, I will verify this with my contract-giver. Quickly going over the points in the wiki defining Schwarzarbeit, I don't see where my situation would qualify.

Petr, swimmer is right. There's no attention given to where income is "sourced" or where the contract is signed. It's all about where you are physically present as you are doing the work. Any work that you perform in Germany is legally taxable as German income under German (and EU) law, and as miwild suggests you should confirm with your local Agentur fuer Arbeit as to whether you need a work permit as a freelancer (you probably do - if not a work permit, then at least a Betriebsnummer). If you're physically present in another country (or countries) - ie. not Germany while doing at least some of the work, then you are liable to taxation in those countries as well. So the question becomes where you file tax forms. If physically present in Czech Republic more than 186 days per year, then file taxes in Czech Repubic but be aware that you will probably have to top up what you owe the Czechs because the Germans will want their share. (Whether you pay through CR or directly to Germany is something your international accountant can tell you - when in doubt plan to pay taxes at the rate of the country with the higher tax rate). Your contract giver is unlikely to know the score, as most do not, or at least they don't need to be up on the latest. That's why your contract explicitly states you need to sort out your own taxes - they legally wash their hands of the whole confusing business. You need to speak with a German accountant and/or German Finanzamt and Arbeitsamt to be sure you have everything covered. International agreements mean that you will not be taxed doubly on the same income, but it may be that you have to pay German tax on the income earned from work done while present in Germany.

My understanding is that if you are here for less than 183 days then you don't have to pay tax here at all.

Indeeed. As a freelancer, the companies (clients) that we work for see us as just another supplier. Not much different from the organisation providing their stationery, electricity, legal advice and the many other things they choose to buy buy to deliver their end service. Forget words relating to employment, because it's not that. Your contract will relate to the provision of services - nothing at all to do with employment.

The main thing they have to worry about is making sure the state does not think they are really employing you and thus trying to avoid their social welfare tax obligations.

As a supplier, you will need to meet VAT law of course too. Those of us resident in Germany and registered as self-employed and providing a business service to another German business and turning over more than 17,5k a year expect to put VAT on our invoices and theny pay that over to Finanzamt (there are some excptions). If you come under the Czech authority, you will need to check their rules.

Finhally, miwild has a point. If you are a non-EU citizen and resident in Germany (ie. spending your time here) and working here, you do indeed need to make sure you have the relevant permission to do so. You may well not have a legal right to do so just because you want to.

The same applies to the so-called "new EU citizens" from Estonia, Latvia, Lithuania, Poland, Slowakia, Slovenia, Czech Republic, Hungary ...

Actually, the restrictions you mention only apply to salaried employees - not to freelancers/independent businessmen. This loophole has been abused by meat packing plants claiming they employ "freelance" butchers, but seems to be perfectly legitimate for petr.

I'm afraid I can't say anything about the taxation, as I do all my work from home - not on-site - but he's certainly allowed to perform freelance work here, so back to the original topic.