Tax Liability for UK National

2 posts in this topic

Hello,

I am UK National living in UK. My UK company has contract with recruitment agency in UK.

As part of the contract I travel to Germany for project-related services.

My overall nos. of days in Germany is likely to be less than 183 days.

My question is whether I need to register for taxes in Germany especially since i am UK resident and going to spend less than 183 days in Germany.

Any pointers on the above question will be welcome.

 

Regards

Tushar

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I think you need to find yourself an accountant who has experience and specialist knowledge in this area.

 

The problem is not just how much time you will spend in Germany, but that you have a Company and the tax rules for the company and yourself might be different.  Germany has different rules and laws in regard to freelancers/consultants and you might be classified differently here compared to the UK.

You might also have to pay tax German social security contributions even if you don't have to pay German tax (or you might be exempted). Or you might have to pay German tax only on your German income (even if less than 6 months in the country).

 

If you don't do things right then you might even end up temporarily paying double tax for a while until you can get it sorted out, which could take some time.

 

Also, bear in mind that the German tax year is the calendar year which is different to the UK, so this can also have an impact.

 

 

So an accountant with the right experience and knowledge should be able to advise you as to what and how to do things in the right way to minimise your expose while ensuring that  you meet the standards required by both countries Tax authorities.

 

 

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