Taxation of international executives
Please see explanations regarding resident/non-residents.
For non-residents, the tax obligations are fulfilled with the wage tax withholding procedure. There are various tax classes for withholding purposes and the more favorable tax class should be applied for by the employer.
If the individual becomes a resident while on short-term assignment, he/she will be liable to tax on his/her worldwide received income. Non-residents are subject to tax on certain categories of income from German sources.
Are there any additional considerations that should be considered before initiating a short-term assignment in Germany?
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