Simplified procedure for reduction of or exemption from tax deduction for transfers of rights pursuant to Section 50a (1) No. 3 EStG (control notification procedure Section 50d (5) EStG) Unfortunately this specification of service has not yet been completely translated.
If you wish to obtain a reduction or an exemption from withholding taxes on the transfer of rights, you may, under certain conditions, participate in the control notification procedure.
In cases of minor tax significance, the Federal Central Tax Office (BZSt) may authorise royalty debtors to participate in the control procedure. This allows remuneration debtors to omit the deduction of tax on royalties for individual amounts (contract-related consideration) up to a maximum of EUR 5,500 (gross amount without VAT) as well as for annual amounts up to a maximum of EUR 40,000 (gross amount without VAT) per remuneration creditor or to apply a lower tax rate.
This applies to debtors of creditors who are resident in a foreign state with which a double taxation agreement (DTA) exists. The respective double taxation agreement regulates whether the debtor can omit the tax deduction in whole or in part.
In the control reporting procedure, no cooperation of the foreign remuneration creditor is required.
Payments that are excluded from the control reporting procedure:
- artistic performances,
- sporting performances and
- Supervisory board activities.
You must report payments made under participation in the control reporting procedure to the BZSt and the debtor's competent business tax offices on an annual basis (annual control report).
You submit your application for participation in the control reporting procedure in writing to the BZSt.
With the authorization you need:
- a BZSt tax number
- Forms: yes
- Online procedure possible: no
- Written form required: yes
Personal appearance required: no
Antrag auf Teilnahme am Kontrollmeldeverfahren auf der Internetseite des Bundeszentralsamtes für Steuern
Applications may be made
- only the person liable for payment for transfers of rights pays or his authorised representative.
- the remuneration to the respective remuneration creditor (= licensor) must not exceed EUR 5,500 (gross amount without VAT) for individual amounts (contract-related consideration) and EUR 40,000 gross in a calendar year
The creditor of the service must be resident in a country that has a double taxation agreement with Germany.
§ 50d Absatz 5 Einkommensteuergesetz (EStG)
Weiterführende Informationen zum Kontrollmeldeverfahren auf der Internetseite des Bundeszentralamts für Steuern
Merkblatt zum Kontrollmeldeverfahren nach § 50d Abs. 5 Einkommensteuergesetz (EStG) auf der Internetseite des Bundeszentralamts für Steuern
Erlass zum Kontrollmeldeverfahren auf der Internetseite des Bundeszentralamts für Steuern
Reststeuersatzlisten auf der Internetseite des Bundeszentralamts für Steuern
You must submit the application for participation in the control reporting procedure in writing to the Federal Central Tax Office (BZSt).
- Now call up the application for participation in the control reporting procedure on the BZSt website. Complete the application electronically. Print it out and sign it.
- Send the application to the BZSt by post.
- Your application will be processed and checked by the BZSt.
If your application is approved, you will receive a written authorisation notice by post.
Responsible for the content
Federal Ministry of Finance (BMF)
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