Assessment procedure

A non-resident payee may request an income tax assessment for income covered by Section 50a (1) (1, 2, 4) EStG. To do this, the payee must be a citizen of an EU/EEA member state and have their domicile or habitual abode in one of these states (Section 50 (2) Sentence 2 (5) Sentence 7 EStG). This rule also applies by analogy to non-resident corporations, associations of persons or conglomerations of property within the meaning of Section 32 (4) Corporation Tax Act (KStG).

The Federal Central Tax Office (BZSt) is responsible for conducting the requested assessment if the payee has only derived income covered by Section 50a (1) (1, 2, 4) EStG. If the payee has also derived domestic income (e.g. from a business enterprise, self-employment, employment, rentals) other than income subject to withholding tax under Section 50a EStG, the assessment will have to be requested from the tax office that is deemed responsible for the assessment under Sections 17 et seq. Fiscal Code (AO).

Creditable taxes

Withholding tax and the associated solidarity surcharge can be credited against assessed tax. The tax certificates issued by the payer under Section 50a (5) Sentence 6 EStG must be appended to the tax return as documentary evidence that the tax was withheld and paid.

Submission deadline

An income / corporation tax assessment must be requested within four years of the end of the calendar year in which the tax was incurred. This deadline cannot be extended.

Submission form

Returns for requested assessments within the meaning of Section 50 (2) Sentence 2 (5) EStG are currently submitted as hard copies.

Forms

Powers of attorney

Income tax

has a more extensive selection of forms for the corporation tax assessment procedure for non-resident taxpayers. It includes forms for earlier assessment periods than the ones listed above.

Corporation tax

The Federal Revenue Administration’s form server has a more extensive selection of forms for the corporation tax assessment procedure for non-resident taxpayers. It includes forms for earlier assessment periods than the ones listed above.

Starting with the 2017 tax period, corporations with limited tax liability have to use the KSt 1 form with its various schedules. The old KSt 1 C form for taxpayers with limited tax liability has been withdrawn.

Please note that the KSt 1 form and its schedules are now only available in hard copy. The forms can be ordered using the contact form.