Special considerations for short-term assignments | KPMG Global
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Germany - Special considerations for short-term assignments

Special considerations for short-term assignments

Taxation of international executives


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Residency rules

Payroll considerations

Taxable income

Additional considerations

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.

Residency rules

Are there special residency considerations for short-term assignments?

Please see explanations regarding resident/non-residents.

Payroll considerations

Are there special payroll considerations for short-term assignments?

For non-residents, the tax obligations are fulfilled with the wage tax withholding procedure. There are various tax classes for withholding purposes and the more favorable tax class should be applied for by the employer.

Taxable income

What income will be taxed during short-term assignments?

If the individual becomes a resident while on short-term assignment, he/she will be liable to tax on his/her worldwide received income. Non-residents are subject to tax on certain categories of income from German sources.

Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in Germany?


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