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Ordered withholding to secure a German tax claim (§ 50a(7) EStG)

This withholding does NOT start with the payer but with an ORDER: the tax office OF THE PAYEE may order the payer to withhold and remit income tax on income subject to limited tax liability, TO THE EXTENT THAT INCOME IS NOT ALREADY SUBJECT TO WITHHOLDING, where this is expedient to secure the tax claim (§ 50a(7) sentence 1 EStG). The withholding is then 25 per cent of total receipts, or 15 per cent for corporations, associations and estates; the tax office may set it differently to match the tax expected to be owed (sentence 2). It is declared and remitted to THE TAX OFFICE THAT ORDERED IT (sentence 3) — not to the Federal Central Tax Office.

Up to date for 2026 — verified on September 23, 2026Official procedure, no printed formGuide: about 30 min

Deadlines

Default: as for the standard withholding, quarterly by the tenth of the following month
§ 50a(7) sentence 3 EStG applies subsection 5 correspondingly — and that names the calendar quarter (subsection 5 sentence 3)
But the tax office may order MONTHLY filing
It may order that tax withheld within a month be declared and remitted by the tenth of the following month (§ 50a(7) sentence 3 EStG, second half-sentence)
The tax arises when the payment reaches the payee
Through the corresponding application of § 50a(5) sentence 1 EStG

Documents to prepare

  • ELSTER access with a certificate or an ELSTER business account
  • The tax office's order, with rate, scope and cycle
  • The name of the tax office that ordered the withholding
  • Details of the payee and their legal form
  • Payment data: dates the payments reached the payee, and amounts for the period
  • Evidence that the income is not already subject to withholding
  • Bank details for remittance
See the procedure on the official site

No form is attached to this procedure: the link leads to the official page that describes it.

What this page gives you

The guide above and the link to the official site. ActioFin does not produce any document for this page: whatever you fill in or file is done on the official medium.

Who this applies to

  • The payer who has received an order under § 50a(7) sentence 1 EStG — without an order this withholding does not exist
  • Only for income subject to limited tax liability, TO THE EXTENT it is not already subject to withholding (§ 50a(7) sentence 1 EStG): this route closes a gap, it does not duplicate anything
  • Not concerned: anyone within the standard cases in § 50a(1) EStG — performances, their exploitation, licensing of rights, supervisory fees. Those follow the subsection 5 procedure, with the Federal Central Tax Office as recipient
  • Not concerned: anyone paying wages already subject to wage tax withholding
  • Still concerned is a payer who considers the order unjustified: the remedy is an objection, not ignoring it
  • The payee is the TAXPAYER; the withholding is made for their account (§ 50a(7) sentence 1 EStG)

Worked example

An engineering practice in Ulm receives an order covering payments to a consultant abroad

The practice pays regular fees to a consultant subject to limited tax liability. Those payments fall under none of the four cases in § 50a(1) EStG, and nothing has been withheld so far. The CONSULTANT's tax office now orders, under § 50a(7) sentence 1 EStG, that the practice withhold and remit income tax for the consultant's account, because that is expedient to secure the tax claim. From that moment the practice faces this: the withholding is 25 per cent of total receipts, or 15 per cent were the consultant a corporation (§ 50a(7) sentence 2 EStG); the tax office may set it differently to match the tax expected to be owed, and the order states which rate applies. It is declared and remitted to the tax office THAT ORDERED THE WITHHOLDING (sentence 3) — that is, the consultant's office, not the practice's own and not the Federal Central Tax Office. Through the corresponding application of subsection 5 the period is the calendar quarter, but the tax office may order the month instead (sentence 3). Two consequences come across from subsection 5: the practice IS LIABLE for withholding and remittance (subsection 5 sentence 5), and it must certify to the consultant on request the particulars laid down, in the officially prescribed form (subsection 5 sentence 7). If it later turns out that tax was withheld without any obligation on income within § 49(1) nos. 7 and 10 EStG, the return is to be amended on the payer's application, or the payer may reduce the next return accordingly; the person ENTITLED TO THE REFUND is then the payer, and the certificate already issued must be replaced by a corrected one (§ 50a(7) sentence 5 EStG).

How to fill it in, step by step

  1. Read the order carefully: it states which payments, at what rate and on what cycle withholding applies (§ 50a(7) sentences 1 to 3 EStG).
  2. Check first whether the income is not already subject to the standard withholding — subsection 7 applies only TO THE EXTENT it is not (sentence 1).
  3. Establish which tax office issued the order: that is where the return and the payment go (§ 50a(7) sentence 3 EStG), not your own office and not the Federal Central Tax Office.
  4. Settle the cycle: by default the calendar quarter through the corresponding application of subsection 5, unless the tax office has ordered the month (sentence 3).
  5. Take the rate from the order: 25 per cent of total receipts, 15 per cent for corporations, associations and estates, or the rate the tax office has adjusted (§ 50a(7) sentence 2 EStG).
  6. Withhold when the payment reaches the payee — that follows from the corresponding application of § 50a(5) sentences 1 and 2 EStG.
  7. Log in to Mein ELSTER and transmit the return for the withholding to secure the tax claim.
  8. Certify to the payee, on request, the particulars laid down, in the officially prescribed form (§ 50a(5) sentence 7 EStG, applying correspondingly).
  9. Keep the correction route open: where tax was withheld without obligation on income within § 49(1) nos. 7 and 10 EStG, the return is to be amended on application or reduced in the next return (§ 50a(7) sentence 5 EStG).

Good to know

  • This withholding is a SECURING MEASURE, not a tax of its own: the tax office orders it where it is 'expedient to secure the tax claim' (§ 50a(7) sentence 1 EStG).
  • It bites only in the GAP: 'to the extent that income is not already subject to withholding' (sentence 1). Anyone already withholding under subsection 1 is not additionally caught here.
  • The recipient differs from the standard case: the return and payment go to the tax office that ordered the withholding (§ 50a(7) sentence 3 EStG), whereas the standard withholding under subsection 5 goes to the Federal Central Tax Office.
  • The rate is not fixed: the tax office may set the withholding differently to match the tax expected to be owed (§ 50a(7) sentence 2 EStG) — so read the order before computing.
  • § 50(2) sentence 1 EStG does not apply (§ 50a(7) sentence 4 EStG).
  • Where tax was withheld without obligation on income within § 49(1) nos. 7 and 10 EStG, the person ENTITLED TO THE REFUND is the payer, not the payee (§ 50a(7) sentence 5 EStG), and the certificate already issued must be replaced by a corrected one; one issued on paper must be recalled.
  • Through the corresponding application of subsection 5, its sentence 5 applies too: the payer is liable for withholding and remittance.
  • For copyright royalties paid not directly to the payee but to an agent, the Federal Government may by regulation make the AGENT the party obliged to withhold (§ 50a(6) EStG) — a third mechanism alongside subsections 1 and 7.

Common mistakes

  • Confusing this return with the standard return under § 50a(5) EStG. It concerns the ORDERED withholding in subsection 7, and it goes to a different tax office.
  • Filing with the Federal Central Tax Office. The return and payment go to the tax office that ORDERED the withholding (§ 50a(7) sentence 3 EStG).
  • Withholding without an order. Subsection 7 presupposes an order from the payee's tax office (sentence 1).
  • Withholding on top of the standard withholding. Subsection 7 applies only TO THE EXTENT the income is not already subject to withholding (sentence 1).
  • Taking the rate from the statute without reading the order. The tax office may set it differently to match the tax expected to be owed (§ 50a(7) sentence 2 EStG).
  • Filing quarterly although the tax office has ordered monthly filing (§ 50a(7) sentence 3 EStG).
  • Letting the payee claim a refund where tax was withheld without obligation. The person entitled to the refund is the PAYER (§ 50a(7) sentence 5 EStG).
  • Forgetting the corrected certificate: the one issued under subsection 5 sentence 7 must be replaced and, if on paper, recalled (§ 50a(7) sentence 5 EStG).

Frequently asked questions

When does this withholding apply to me?

When the payee's tax office orders it. It may order the payer to withhold and remit income tax on income subject to limited tax liability, to the extent that income is not already subject to withholding, where this is expedient to secure the tax claim (§ 50a(7) sentence 1 EStG).

How much is withheld?

25 per cent of total receipts, or 15 per cent of total receipts for corporations, associations and estates; the tax office may set the amount differently to match the tax expected to be owed (§ 50a(7) sentence 2 EStG).

Where do I file?

With the tax office that ordered the withholding (§ 50a(7) sentence 3 EStG). That is what distinguishes this procedure from the standard withholding under subsection 5, which is filed with the Federal Central Tax Office.

On what cycle?

Subsection 5 applies correspondingly, so in principle for tax withheld within a calendar quarter, by the tenth of the following month. The tax office may, however, order that tax withheld within a MONTH be declared and remitted by the tenth of the following month (§ 50a(7) sentence 3 EStG).

What if I withheld without being obliged to?

For income within § 49(1) nos. 7 and 10 EStG the return is to be amended to that extent on the payer's application; alternatively the payer may reduce the next return accordingly. The person entitled to the refund is the payer, and the certificate issued must be replaced by a corrected one (§ 50a(7) sentence 5 EStG).

Am I liable for it?

Yes. Through the corresponding application of subsection 5, its sentence 5 applies: the payer is liable for the withholding and remittance of the tax.

Go further

Compute the related amounts

Understand this form: the related course

Related forms

Official sources

Read in German

Guide and document provided for information purposes only; they do not constitute personalised legal or tax advice. Check the recipient organisation's requirements and consult a professional if needed.