Contract in Germany - tax?

[Olly]

why wouldn't I?

..

[tim123]

What they have been bad at is giving you advice on a subject that they are not qualified in.

As a 'professional' they shouldn't do this.

To be clear here, the situation wrt german tax is that you are liable for tax on your world wide income, as soon as you become tax resident in the country.

One of the qualification for which is "taking on an apartment". So it is perfectly possible (depending upon your personal circumstances) that the advice you have received is, at best, incomplete.

tim

[Olly]

ohh...

..

[tim123]

'world wide income' --- hmm very bad news
me taking an apartment is a strong phrase - I'm subletting a single room on a month's notice basis because hotels are expensive. It's cost saving measure not a step towards being domiciled here.

Actual signed contract is for 6 months (ie. < 183 days) so it's pretty hard to imagine how I could be classed as tax resident prior to contract extension.

Likelihood is it will roll on though until end of year (I started April 4th) after which time i'll return to the UK. When's a German personal tax year? Providing I pay the dividend when I'm no longer tax resident then maybe it's ok and they can't touch that (reminds me - I forgot to pay myself a wage for last month!)

Actually, I've no idea where the Finanzamt draw the line on "taking an apartment", but then I doubt that a UK accountant does either.

The German Tax year is irrelevent for the purpose of calculating whether you are resident or not. If a 10 month stay is 5 months in each tax year that still makes you resident for both.

And whilst you might "get away with" paying the dividend after you leave, that doesn't make it a legit avoidance.

tim

[Mike Hunt]

Are these the exact same rules for France as I am contracting in Paris for about 3 months now and have paid no Income Tax yet or opened up a French Bank account??

[vavavroom]

Similar Situation...

I'm in a situation where I've started a short contract in Germany. I have a question regarding the 183 day limit..is that 183 working days?

I was advised by the UK agency that I would need to go through a management company, but I'm being told by a colleague who has done contracting in Germany before that as long as I don't go over th 183 day limit, I should go through my UK LTD company and invoice as usual.
Is that correct?

All a mine field if you ask me and I definitely won't be coming back to work here if I can help it!