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Foreign companies from France, Switzerland, Liechtenstein and Monaco

Foreign companies that have neither their registered office nor their management in Germany are in principle subject to limited income or corporation tax liability in Germany pursuant to Section 49 (1) No. 2 EStG or Section 2 KStG. This means that such companies are also obliged to comply with and fulfil their tax obligations.

In addition to income tax (income tax, corporate income tax, etc.), which is levied on a company's profits, there may be other tax obligations. If a company employs employees in Germany, it is obliged to withhold and pay wage tax to the tax office if it has a domestic permanent establishment or a domestic representative. The existence of a permanent establishment or a domestic representative is determined in accordance with §§ 12, 13 of the German Fiscal Code (AO).

Double taxation agreements concluded between Germany and the foreign state may in turn restrict Germany's right of taxation and must be observed in individual cases.

In addition, there may also be turnover tax obligations, which can be taken from the country overviews listed below.

 

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