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I established a UK LTD while living in Germany, but now what?

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I am a Tunisian living in Germany for over 6 years now (holding a permanent residency and soon applying for citizenship) and working as an engineer for about 3 years at a German company. Recently, I have asked to work only part-time (60%) and with my spare time, I have been experimenting with online business ideas and social media.

 

When I had a look at the possibility of establishing a UG or GmbH I found that it will be way too complicated and time and budget consuming considering that I will be doing dropshipping and Amazon FBA and only targeting English speaking counties (Still not fluent in German :D).

So I decided to form a LTD in the UK, it took only 5 hours and was done with ease.

 

So my main dropshipping business and website revenue will be assigned to the LTD. And I also have a YouTube Channel that got recently monetized so I registered a Selbstandig here in Germany for that stream of income from youtube (Below 150 eur a month)

 

Now the Finanzamt sent me a request to fill out a tax questionnaire for my recently registered Youtube Gewerbeanmeldung  

My question is, how that will be taxed in both countries considering that I am working in a fixed job in Germany (60%) and owning a UK LTD (that still has not made any profit)?

Will I be double taxed or what would be the situation?

 

 

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there should be double taxation treaty between Germany and UK so once you tax in UK whatawere you withdraw from UK company it should be fine and you should not pay extra fee in Germany but I am not tax adviser so you can consult with tax adviser (stauerberater)

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Get yourself a very good Steuerberater. You will need to submit accounts to the UK and to DE in order to take advantage of the double taxation treaty so you’ll probably need an accountant in the UK as well. Because you live and operate the business in DE taxes will be primarily paid here. Because German tax is higher than British then you shouldn’t have to pay anything there. 
 

p.s. Did you do your research regarding the lack of limited liability for limited companies in DE post BREXIT? 

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2 hours ago, Dai said:

Get yourself a very good Steuerberater. You will need to submit accounts to the UK and to DE in order to take advantage of the double taxation treaty so you’ll probably need an accountant in the UK as well. Because you live and operate the business in DE taxes will be primarily paid here. Because German tax is higher than British then you shouldn’t have to pay anything there. 
 

p.s. Did you do your research regarding the lack of limited liability for limited companies in DE post BREXIT? 

Thanks! No I haven't informed myself about that, but I am not doing any trading or service activities in DE anyway. Only English speaking countries. Will that affect my limited liability even not offering anything to the German Market?

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Yes, if you live in and operate your company from Germany then German rules apply. 

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On 27/07/2021, 00:38:04, ouba said:

Recently, I have asked to work only part-time (60%) and with my spare time, I have been experimenting with online business ideas and social media.

 

Did you reduce your hours or are you on Kurzarbeit? If you are receiving Kurzarbeitergeld you are required to also report your foreign earnings. 

 

On 27/07/2021, 00:38:04, ouba said:

When I had a look at the possibility of establishing a UG or GmbH I found that it will be way too complicated and time and budget consuming considering that I will be doing dropshipping and Amazon FBA and only targeting English speaking counties (Still not fluent in German :D).

 

I know it was mentioned before, but you really need a Steuerberaterin. 

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15 hours ago, engelchen said:

 

 

 

 

Did you reduce your hours or are you on Kurzarbeit? If you are receiving Kurzarbeitergeld you are required to also report your foreign earnings. 

 

 

I know it was mentioned before, but you really need a Steuerberaterin. 

No, I have requested the part-time on my own to try and explore business opportunities.

 

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