Note on tax deduction according to §50a EStG
Designers who are neither resident nor ordinarily resident in Germany are subject to limited tax liability in Germany if they earn income from the transfer of rights. In these cases, the German tax due on this income must be withheld by us and paid to the German tax authorities. The basis for the deduction is 60% of the turnover, i.e.
Example:
Turnover = 1000€
Basis for tax: License share (60%) = 600€
Due to the simplified tax deduction according to §50a EStG, the amount of the deduction depends on the so-called „DBA Reststeuersatz“, which is usually between 0-15% depending on the country of origin. The amount for your country will be shown on the credit note.
If the annual turnover exceeds 16.666,66€ (license share 10.000€), a standard tax rate of 15% (referring to the license share) plus 5,5% „Solidaritätszuschlag“ (The calculation basis is the tax rate of 15 % )must be paid.
DUE TO A CHANGE IN THE LAW WITH RETROACTIVE EFFECT FROM 01.01.2024, THE LIMIT HAS BEEN INCREASED FROM 5.000,00€ TO 10.000,00€ AND IT IS NO LONGER NECESSARY TO RECALCULATE PAST CREDITS FOR A CALENDAR YEAR.
It is possible to be exempted from the increased taxation (15% plus 5,5% Solidaritätszuschlag) and to pay only the tax according to the DBA Reststeuersatz even with a higher turnover. You can apply for an exemption from the German Federal Central Tax Office. As this application must now be made fully electronically, you can only submit it in person.
Click here to go to the portal: Anmeldung bei BOP-neu (bzst.de)
As soon as you have received a notice of exemption, please send it to us so that we can make an internal note of its validity. Otherwise we are obliged to charge you the tax deduction as described above. As soon as the notice of exemption expires, please take care of an extension in good time.
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