Payroll Tax/Withholding Tax
For individuals who are residents or staying in Germany (persons subject to unlimited tax liability), withholding tax is levied on
- income from employment / substitute income (payroll tax) as well as
- attendance fees.
For individuals residing or staying abroad (persons with limited tax liability), a withholding tax is levied on
- Income from employment / substitute income;
- attendance fees;
- pension and lump-sum benefits from the 1st and 2nd pillars, as well as
- payments resulting from the closure of a vested benefits account or a vested benefits policy
The provisions regarding withholding tax are set forth in Art. 24 et seq. of the Tax Act.