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- Title
Steuerliche Behandlung von Arbeitnehmereinkünften bei Auslandstätigkeiten (Auslandstätigkeitserlass).
- Abstract
The article "Tax Treatment of Employee Income in Foreign Activities (Foreign Activity Decree)" describes the tax treatment of employee income in foreign activities. Employees who work for an employer based in an EU member state or a state of the European Economic Area (EEA) are exempt from taxation on their wages for eligible activities abroad. Eligible activities include, among others, the planning, construction, and maintenance of factories and buildings, as well as consulting for foreign clients. The foreign activity must be carried out for at least three months in countries without double taxation agreements. The article also addresses the progression clause, which states that the taxable income is taxed taking into account the eligible income from dependent employment. Examples are provided to illustrate the application of the regulations, and procedural provisions for waiving taxation in the withholding tax procedure are explained. The article also contains information on recording eligible wages in the payroll account and on the tax refund for incorrectly withheld wage tax under double taxation agreements. Finally, application questions regarding the extended reduction of trade income are addressed.
- Subjects
EMPLOYEES; EUROPEAN Economic Area; EMPLOYERS; TAX administration &; procedure; EUROPEAN Union; INCOME tax; PAYROLL tax; TAXATION; EMPLOYMENT; WAGE taxation; WITHHOLDING tax; PAYROLLS; TAX refunds; DOUBLE taxation
- Publication
FinanzRundschau, 2022, Vol 104, Issue 18, p860
- ISSN
2567-4765
- Publication type
Article
- DOI
10.9785/fr-2022-1041811