Cultural Orchestra Regulation
Foreign cultural associations and orchestras not already exempted from tax withholding under a double taxation agreement (DTA) can be exempted from domestic income/corporation tax under the Cultural Orchestra Regulation.
Foreign cultural associations and orchestras not already exempted from tax withholding by a double taxation agreement (DTA) can be exempted from domestic income/corporation tax under the Cultural Orchestra Regulation.
To qualify for an exemption, the performance has to be substantially subsidized with public funds (Section 50 (4) (2) EStG).
A subsidy is considered substantial if it covers at least one-third of the costs of the performance in the territory of Germany (e.g. artist’s fees, travel costs, accommodation). The subsidy must be directly financed from public funds. ‘Institutional funding’ supplied by a non-profit organization or similar body does not qualify for an exemption.
The certificate of exemption is issued by the tax office that has jurisdiction over the payer, not the BZSt.
Contact
Federal Central Tax Office
Department St II 9 Withholding Taxes
An der Küppe 1
53225 Bonn
Phone:
+49 228 406-1200
Fax: +49 228 406-3200
Jurisdiction:
Withholding tax
