Foreign income and non-resident withholding in Germany
A German business that pays a foreign performer, licensor or supervisory board member withholds 15 percent, 30 percent for the board member, files quarterly with the Federal Central Tax Office and is liable for the deduction. Plus the net method, the treaty exemption and the 25 percent withholding a tax office can order. The second module covers the credit for foreign tax up to the ceiling of § 34c EStG and § 26 KStG, and the reporting of foreign holdings from 10 percent or 150,000 €. Two modules with fully worked case studies.
Intermediate2 modules44 minModule 1 free to read
2026 rules — verified on September 23, 2026
Figures are tied to dated, sourced tax constants. A module whose rules have changed is flagged for review, and is unpublished automatically beyond 90 days.
By the end of this course, you can…
These outcomes are the modules' own: the promise cannot say anything the course does not teach.
- recognise which payments to foreign recipients fall under the four cases of § 50a (1) EStG
- compute the withholding under the gross method or the net method and choose the cheaper one
- meet the filing, payment and deadline rules of the Federal Central Tax Office and assess your own liability
- use an exemption certificate or the exemption option of § 50c EStG instead of simply relying on a treaty
- tell the withholding ordered by a tax office under § 50a (7) EStG apart from the standard withholding
- recognise when a foreign tax can be credited under § 34c EStG and when a treaty decides the route
- compute the credit ceiling with the average tax rate and spot the excess credit
- choose between crediting and deducting foreign tax, and recognise the mandatory deduction under subsection 3
- apply the apportionment formula of § 26 KStG for a corporation
- report foreign holdings and permanent establishments under § 138 (2) AO on time
The programme, module by module
Each module has its own page. Durations are derived from the actual text, never announced by hand.
- Module 123 minFree — no accountPaying non-residents: the withholding tax under § 50a EStGWhat you will be able to do
- recognise which payments to foreign recipients fall under the four cases of § 50a (1) EStG
- compute the withholding under the gross method or the net method and choose the cheaper one
- meet the filing, payment and deadline rules of the Federal Central Tax Office and assess your own liability
- use an exemption certificate or the exemption option of § 50c EStG instead of simply relying on a treaty
- tell the withholding ordered by a tax office under § 50a (7) EStG apart from the standard withholding
- Module 221 minIncluded in the full courseIncome from abroad: credit for foreign tax and reporting of foreign holdingsWhat you will be able to do
- recognise when a foreign tax can be credited under § 34c EStG and when a treaty decides the route
- compute the credit ceiling with the average tax rate and spot the excess credit
- choose between crediting and deducting foreign tax, and recognise the mandatory deduction under subsection 3
- apply the apportionment formula of § 26 KStG for a corporation
- report foreign holdings and permanent establishments under § 138 (2) AO on time
What you take away
A handout you keep, not just a page you read. The sections are derived from the course itself: what is announced here is exactly what gets generated.
Participant handout (PDF)
PDF
- Learning objectives (2)
- Key figures (6)
- Mistakes to avoid (2)
- Official sources (2)
Exercise workbook (Word)
Word
- Learning objectives (2)
- Key figures (6)
- Mistakes to avoid (2)
- Official sources (2)
Answers live in a separate appendix: the participant handout and the workbook stay distributable before the exercise.
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Where this course leads
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Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.