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Wage administration

Income tax for your employees

If you place employees in Germany and those employees spend more than 183 days in the calendar year in Germany, your company is obliged to pay an income tax for the employees in Germany. The given duty to pay the income tax is applicable also to temporary placement of employees in Germany (the so-called employee hiring), and the income tax duty is applicable as of the first day of temporary placement of an employee.

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To calculate the relevant income tax, you need your staff payroll to be processed by a German tax advisor, who will calculate the German income tax, which you will subsequently pay to a German tax office. You will have the same obligation if you hire German employees or if your home-country employees are insured in a German insurance company. With the help of our German tax advisor, we will process payroll of your staff and we will inform you of your further duties in Germany.

When an employer pays a German income tax for an employee, such an employee may apply for German child benefits.

If you place employees in Germany and those employees spend more than 183 days in the calendar year in Germany, your company is obliged to pay the German income tax for the employees and also to have your payroll processed by a German tax advisor.

In case you lease your personnel based on German permission to lease employees (Arbeitnehmerueberlassung – AUG), your company is obliged to pay the German income tax for the employees and also to have your payroll processed according to German regulations as of the first day of personnel lease.