Apply for participation in the control reporting procedure for relief from withholding taxes

If you owe remuneration for the transfer of rights or certain capital gains, you can apply for authorisation to use the control reporting procedure in order to be able to withhold all or part of the tax under certain conditions.

In the control reporting procedure, the debtor omits the tax deduction or makes it only according to the maximum permissible tax rate under the double taxation agreement (DTA). This only applies to creditors who are resident in a foreign state with which a corresponding DTA exists.

The respective double taxation treaty regulates whether the debtor can omit the tax deduction in whole or in part.

If you participate in the control reporting procedure, you must report the payments made to the Federal Central Tax Office (BZSt) and your local tax office annually (annual control report).

You submit your application to participate in the control reporting procedure in writing by post to the BZSt.

Notes
Authorisation to use the control reporting procedure is subject to revocation at any time.
The debtor's existing filing obligations for investment income and liability in the event of improper use of the control reporting procedure remain unaffected.

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Forms: yes
Online procedure possible: no
Written form required: yes
Personal appearance required: no

You can make an application if you:

• Debtors of certain investment income are and
  • the identity of your foreign resident creditor and
  • his entitlement to claim tax relief can be established without further investigation before the income is paid out.
• Are the debtor of benefits for the transfer of rights.

Other requirements:

• Your investment income or remuneration paid per creditor may not exceed the following amount limits during a calendar year:
  • Individual amounts: EUR 5,500 (gross amount excluding VAT).
  • Annual amounts: EUR 40,000 (gross amount without VAT)
  • certain capital gains: EUR 40,000 (gross amount)
• Your creditor of the investment income or remuneration must be resident in a state with which Germany has concluded a double taxation agreement.
• You can only use the control reporting procedure for investment income if the exemption procedure is not applicable.

You must submit the application for participation in the control reporting procedure in writing to the Federal Central Tax Office (BZSt).

• Call up the application for participation in the control reporting procedure on the BZSt website.
• Complete and sign the application.
• Send the application to the BZSt by post.
• Your application will be examined by the BZSt.
• The Federal Central Tax Office will notify you of its decision on your application to participate in the control reporting procedure in writing by post in the form of a notice.

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• for processing the application: 2 to 4 weeks

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