Lohnsteuer
Right of taxation for remuneration of supervisory board members and managing directors according to Art. 16 of the double taxation agreement with Poland
Art. 16 of the double taxation agreement Germany/Poland (DTA) stipulates the right of taxation for remuneration of supervisory boards, boards of directors and authorised representatives. However, the tax treatment of these remunerations is assessed differently by the contracting states. Also, in cross-border cases, the tax authorities are currently focusing on the correct taxation of the remuneration of foreign managing directors and board members.
Art. 16, para. 1 DTA
Art. 16, para. 1 DTA regulates the right of taxation for supervisory and administrative board remuneration and similar payments. According to German income tax law, these remunerations are to be allocated to income from self-employment (§ 18 EStG). According to the DTA, these remunerations can be taxed in the state in which the company is resident, regardless of the state in which the activity is carried out.
Art. 16, para. 2 DTA
Art. 16, para. 2 DTA concerns the right of taxation in connection with salaries, wages and other remuneration received by a person from a company in his capacity as an authorised representative. This provision, which is not contained in the OECD Model Tax Convention (OECD-MA), assigns the right of taxation for such remuneration to the company's State of residence. It is irrelevant in which state the authorised representative actually carries out his activity.
Von Stefan Sperandio, Johanna Wolter und Jasmin Hanft
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