Originally posted by darmstadt
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Reply to: Boomed (droehnte)
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Previously on "Boomed (droehnte)"
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Originally posted by suityou01 View PostMy Client is a UK registered consultancy.
gr8 stuff
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WBBS
I don't know where people get the idea that just because we have freedom of movement within the EU you don't need to pay tax locally for six months...
This plus the lack of clarity as to whether a one-man Ltd effectively moves it's tax presence to the new State and should be also taxed there from day one puts me off working in this way in the EU.
I turned a blind eye when I did 151 days in Ireland, but even now I'm looking over my shoulder!
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Originally posted by suityou01 View Post183 days being closely monitored Darmy. It's surprisingly hard to click up when your only there 20 days a month.
Then again I'm still not clear if this is every 12 months or every tax year (jan-dec)
If you arrive in Germany on January 1st then you are taxable on worldwide income in July. However if because you have a family in the UK and you return every weekend you will probably remain non-resident indefinitely.
Even if you are there less than 6 months they still want tax, because non-residents are taxable on German income, i.e. 183 days is not really the criteria that determine your residency because you return to the UK every weekend.
Most people think you only pay tax where you're resident. This is not true, you pay tax where the income comes from. So you work in France for three months you pay tax for three months there. You work in Germany for two months, you pay tax there. But you're UK resident you declare it in the UK and they credit the tax you pay. That's the rule. There are exceptions such as if the client is a UK based company and you are paid by them (not the agency) i.e. a UK registered client.
You'll probably get away with it, but do be aware that contractors are prosecuted if caught using their Ltd's in Germany without registering them even for less than 6 months.
We've had quite a few posts in Legal on this.
My advice would be see a German accountant and straighten your affairs out, at least he can check on taxability and try and get it exempt.
...and congratulationsLast edited by BlasterBates; 3 April 2015, 13:06.
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Originally posted by suityou01 View Post183 days being closely monitored Darmy. It's surprisingly hard to click up when your only there 20 days a month.
Then again I'm still not clear if this is every 12 months or every tax year (jan-dec)
HTH, NLUK
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Taken in a friendly way
However in most situations, particularly if a double taxation avoidance treaty exists between your country of work and your home country, you will not have to pay tax on the same income twice
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