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Paying non-residents: the withholding tax under § 50a EStG
The module’s worked examples, then cases to attempt before revealing their solution · 2 sections · 308 words · 3 min
Worked example
Exemption limit and solidarity surcharge in everyday practice
A cultural association pays a Belgian magician 240 euros for a show at its summer fête and a Czech singer 800 euros for a concert. The magician's fee stays below the 250 euro limit, nothing is withheld, but the transaction must still be declared. For the singer, the association withholds 15 percent, i.e. 120 euros, plus a 5.5 percent solidarity surcharge on that amount, i.e. 6.60 euros. The payout is 673.40 euros.
Practical case
Gross or net for a concert fee?
A concert promoter from Cologne hires a Dutch guitarist who lives in Utrecht and holds Dutch nationality. For a concert on 14 May 2026 he receives a fee of 3,000 euros, transferred the same day. He documents his travel, equipment and accommodation costs of 1,800 euros completely and verifiably. No exemption certificate exists. Which method is cheaper, how much must be withheld in total, and by when must the tax be declared?
Hint: First check whether the net method is available at all, then compare the two rates on their respective bases.
Show the solution
The concert is a performance under number 1, and the fee exceeds the 250 euro limit. The guitarist is an EU national resident in the EU and his costs are documented, so the net method is available. Gross, 15 percent of 3,000 euros would be due, i.e. 450 euros. Net, it is 30 percent of 1,200 euros, i.e. 360 euros. Since costs exceed half of the fee, the net method is 90 euros cheaper. Add 5.5 percent solidarity surcharge on 360 euros, i.e. 19.80 euros. The fee flows in the second quarter, so it must be declared and paid to the Federal Central Tax Office by the tenth of the month after the quarter ends, i.e. by 10 July 2026.
Answer: Net method: withhold 379.80 €, file by 10 July 2026
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