Contrating/tax laws in gemrany

[jambo1967]

I calculated. Tax due on EUR 130000 is 78000, that would be 60% take home, then there are fees from the management company, maybe health insurance.

Steuerrechner 2013 - Steuer Berechnung nach Steuertarif 2013

Don´t even think about a high retention scheme or using your Ltd even for less than 183 days. The Finanzamt will be down on you like a ton of bricks. They seem to catch most contractors who try it on. As a matter of course they match all invoices with tax paid. So eventually you would get found out when they audit the client, which they do frequently.

Either you accept max 60% take home or don´t go.

Fair comment my friend although I think they preferred suppliers are quoting me with 78% retention, I know more than likely sales bullsh** to get you to sign up with them

[BlasterBates]

I calculated. Tax due on EUR 130000 is 78000, that would be 60% take home, then there are fees from the management company, maybe health insurance.

Steuerrechner 2013 - Steuer Berechnung nach Steuertarif 2013

Don´t even think about a high retention scheme or using your Ltd even for less than 183 days. The Finanzamt will be down on you like a ton of bricks. They seem to catch most contractors who try it on. As a matter of course they match all invoices with tax paid. So eventually you would get found out when they audit the client, which they do frequently.

Either you accept max 60% take home or don´t go.

[Ignis Fatuus]

Unfortunately they can't operate with your UK ltd company.i find the figures quite staggering to the extent why do uk contractors go there to work if sums are correct

In many years for me the more important sum was:
number of contracts I could find in UK = 0,
number of contracts I could find in Germany >= 1.

OK I know it's not a sum. But I also found the inequality:

day rate in Germany - day rate in UK > 300
with the added logical statement:
daily commute to uk contract = FALSE

[darmstadt]

You can hopefully retain a bit more as self-employed, eg 60%.
Check the forum postings and guides out on Germany.

It also depends upon your marital status as well. A single person pays a hell of a lot more tax than a married person, and then if you're married it depends upon your joint income. Another factor is children and if they're on your tax card or not, I have half my son on mine and that once again changes my allowances. This is why, if you're going to work in Germany for more than the 183 days, get a German accountant. The Finanzamt are not averse to changing the allowances for self-employed half way through a tax year.

[suityou01]

Funny that SuitYou asks a question about Germany and then a first time poster comes on and asks a similar question isn't it......

Ok which one of you is it?

[sunflower]

Tax rates in Germany are circa 45%. Hence 55% retention.

I am not an expert on this.... However from the details you have posted the agency will make you contract via a management company who will pay your taxes in Germany. Potentially you could operate on freelance basis via your limited company but that would likely be capped at 183 days.

Andy is right if you use a management company, you will have to pay tax and social insurance. You can set yourself up as a freiberufler or freelancer over there with a German accountant. (Don't go for the management companies offerings of an accountant service or self-employed solution before you check out some tips on a local steurberater yourself, it might be cheaper). A self-employed freelancer will need to get health insurance but would not be obliged to pay social insurance via the payroll. You will have to proove that you have more than one client in the tax year as well. You can hopefully retain a bit more as self-employed, eg 60%. It really depends on how long your contract will be.

Check the forum postings and guides out on Germany.

[jambo1967]

Tax rates in Germany are circa 45%. Hence 55% retention.

I am not an expert on this.... However from the details you have posted the agency will make you contract via a management company who will pay your taxes in Germany. Potentially you could operate on freelance basis via your limited company but that would likely be capped at 183 days.

Unfortunately they can't operate with your UK ltd company.i find the figures quite staggering to the extent why do uk contractors go there to work if sums are correct

[jambo1967]

Funny that SuitYou asks a question about Germany and then a first time poster comes on and asks a similar question isn't it......

Thanks for your positive input

Hard to see a single word spelt correctly in that post!

Spellchecker on iPad oh and likewise thanks for your thorough info overload

[Andy Hallett]

Contrating/tax laws in gemrany

Tax rates in Germany are circa 45%. Hence 55% retention.

I am not an expert on this.... However from the details you have posted the agency will make you contract via a management company who will pay your taxes in Germany. Potentially you could operate on freelance basis via your limited company but that would likely be capped at 183 days.

[northernladuk]

Do you think I can post a rude smiley in this thread and get away with it?

[stek]

Contrating/tax laws in gemrany

Hard to see a single word spelt correctly in that post!

[northernladuk]

Funny that SuitYou asks a question about Germany and then a first time poster comes on and asks a similar question isn't it......

[jambo1967]

i could potentially have a 6 month contract in germany possibly a lot longer all going well.can someone please advise on taxation rules in gemrnay etc as my agency is referrign me to a "prefered supplier" who on face of it tkae money for nothing befroe i even pay german tax/NI.all in all it leaves you with 55% take home pay which is not worth my while

does anyone know the best schemes for a UK resident to negate tax in Germany i.e by negating expenses etc.any helpful links posts would be appreciated before i ask my accountant too